M/S. A.P.T. ISPAT PVT. LTD. versus U.P. SMALL INDUSTRIES CORPORATION LTD. & ANR.

M/S. A.P.T. ISPAT PVT. LTD. versus U.P. SMALL INDUSTRIES CORPORATION LTD. & ANR.

Sale of goods by the Corporation to the appellant does not amount to financial assistance under the U.P. Public Moneys (Recovery of Dues) Act, 1972, unless supported by an agreement establishing loan, grant, or hire purchase; recovery certificates based on mere supply of goods are illegal and unsustainable; after...

Source-derived case information.

Parties
Appellant: M/S. A.P.T. ISPAT PVT. LTD.; Respondent: U.P. SMALL INDUSTRIES CORPORATION LTD.; Respondent: Anr.
Jurisdiction
India
Judgment Date
23 April 2010
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed; High Court order set aside; recovery certificates quashed; no order as to costs.
Legal Topics
Recovery Certificates, Financial Assistance Under U.p. Public Moneys (recovery of Dues) Act, 1972, Debt Recovery Process, Applicability of Recovery of Debts Due to Banks and Financial Institutions Act, 1993
Recovery of Debts Administrative Law Recovery Certificates Financial Assistance Under U.p. Public Moneys (recovery of Dues) Act, 1972 Debt Recovery Process Applicability of Recovery of Debts Due to Banks and Financial Institutions Act, 1993

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Parties

M/S. A.P.T. ISPAT PVT. LTD.

Appellant

U.P. SMALL INDUSTRIES CORPORATION LTD.

Respondent

Anr.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether supply of goods by the Corporation constitutes 'financial assistance' under U.P. Public Moneys (Recovery of Dues) Act, 1972
  2. 2 Whether proceedings under s.3 of the U.P. Public Moneys (Recovery of Dues) Act, 1972 can be invoked for ordinary sale of goods
  3. 3 Effect of FIR alleging criminal offences on recovery process

Ratio Decidendi

Sale of goods by the Corporation to the appellant does not amount to financial assistance under the U.P. Public Moneys (Recovery of Dues) Act, 1972, unless supported by an agreement establishing loan, grant, or hire purchase; recovery certificates based on mere supply of goods are illegal and unsustainable; after the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is in force, the U.P. Act cannot be invoked for such recovery.

Court Disposition

Appeal allowed; High Court order set aside; recovery certificates quashed; no order as to costs.

Orders

  • Order of High Court set aside.
  • Impugned recovery certificates quashed.