PAWAN KUMAR JAIN versus THE PRADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION OF U.P. LTD. AND ORS.

PAWAN KUMAR JAIN versus THE PRADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION OF U.P. LTD. AND ORS.

Action against the guarantor cannot be sustained as the property of the principal-debtor was not sold off; Recovery Notice set aside; Corporation may proceed against guarantor before Debt Recovery Tribunal as per Unique Butyle Tube's case.

Parties
Appellant/guarantor: Pawan Kumar Jain; Respondent No. 1/corporation: Pradeshiya Industrial and Investment Corporation of U.P. Ltd.; Respondent: Respondent No. 2; Respondent: Respondent No. 3
Jurisdiction
India
Judgment Date
11 August 2004
Procedural Posture
Civil Appeal / Appeal From Allahabad High Court Dismissal of Writ Petition and Review Petition
Outcome
Appeals disposed of; Recovery Notice set aside
Legal Topics
Recovery of Public Monies, Liability of Guarantor, Debts Recovery Tribunal Jurisdiction
Banking Law Financial Institutions Recovery of Debts Recovery of Public Monies Liability of Guarantor Debts Recovery Tribunal Jurisdiction

Case Brief

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Parties

Pawan Kumar Jain

Appellant/guarantor

Pradeshiya Industrial and Investment Corporation of U.P. Ltd.

Respondent No. 1/corporation

Respondent No. 2

Respondent

Respondent No. 3

Respondent

Procedural Posture

Civil Appeal / Appeal From Allahabad High Court Dismissal of Writ Petition and Review Petition

Legal Issues

  1. 1 Whether Recovery Notice issued under U.P. Public Moneys (Recovery of Dues) Act, 1972 prior to Central Government notification under Debts Recovery Act is valid
  2. 2 Whether action can be initiated against guarantor before sale of property of principal debtor

Ratio Decidendi

Action against the guarantor cannot be sustained as the property of the principal-debtor was not sold off; Recovery Notice set aside; Corporation may proceed against guarantor before Debt Recovery Tribunal as per Unique Butyle Tube's case.

Court Disposition

Appeals disposed of; Recovery Notice set aside

Orders

  • Recovery Notice against appellant set aside
  • Respondent Corporation may proceed against appellant before Debt Recovery Tribunal in accordance with Unique Butyle Tube's case