KARNAIL SINGH Vs. CHANDIGARH ADMINISTRATION

JUDGEMENT

(1.) THE petitioner has challenged the recovery of the loan amount granted to respondent No. 3 under the Punjab State Aid to Industries Act, 1935 (for short the 'Act').

(2.) VIDE agreement dated 9.3.1977, a sum of Rs. 5,000/- was advanced as loan to Smt. Satya Sharma, respondent No. 3 for the purpose of development of foundry Unit. The petitioner has agreed to accordance with Rule 7 of the Rules framed under Section 46 of the Act to stand as surety for the repayment of the said loan.

(3.) THE petitioner has filed the present writ petition alleging therein that the Assistant Collector is proceeding with the recovery proceedings of amount of Rs. 7,639.92 without any sufficient reasons and without giving any notice. Reliance was placed upon Section 23 of the Act to contend that no declaration in terms of the aforesaid provisions have been issued which may entitle the respondents to recover the loan amount as arrears of land revenue.