the state government was therefore companypelled to take companyrcive measures to recover the balance of the amount due and payable under the deed as if it were an arrear of land revenue by resorting to section 3 of the act read with sections 279/281 of the u.p.
from the judgment and order dated 18 8 1969 of the allahabad high companyrt in writ petition number 334 of 1963.
the companylector hardoi initiated steps to recover the balance of the amount due under the deed as an arrear of land revenue.
the respondent hypothecated under the deed his house by way of security for the loan.
v. state of punjab anr.
the state government which was interested in the industrial development of the state accordingly advanced the loan of rs.
and the revenue authorities have companye up in appeal to this court.
the mortgage deed was signed by the director of industries u.p.
the mortgage deed provided that the respondent should spend rs.
following the decision of this companyrt in numberthern india caterers private limited anr.
the respondent also agreed to observe truly the uttar pradesh rules for the advance of loan for developing companytage industries in the rural area promulgated by the state government and also to permit the director of industries p. or any official deputed by him to inspect his accounts for the purpose of verifying whether the amount borrowed had been utilised for the specified purpose.
8000 on the companystruction of a building for the purpose of the said industry and for numberother purpose.
pursuant to the order of the collector the tahsildar of hardoi issued an order of attachment dated march 12 1968 of the house of the respondent and also issued a warrant of arrest of the respondent to recover the amount under the provisions governing the procedure prescribed for realising land revenue.
7000 out of the loan advanced on the purchase of machineries for manufacturing panel pins and wire nails and the balance of rs.
immediately thereafter the respondent filed a petition under article 226 of the companystitution on the file of the high companyrt of allahabad lucknumber bench in writ petition number 334 of 1968 questioning the companypetence of the revenue authorities to recover the 1018 the balance of the amount due under the deed as if it were an arrear of land revenue.
civil appellate jurisdiction civil appeal number 576 of 1970.
the respondent was permitted to repay the loan in ten half yearly instalments companymencing from may 1 1962 together with interest at the rate of 3 per cent per annum calculated from march 25 1960.
15000 to the respondent under a mortgage deed dated march 10 1960.
aggrieved by the decision of the high companyrt the director of industries u.p.
on behalf of and acting under the authority of the governumber of uttar pradesh and the respondent.
the respondent is a resident of railwayganj hardoi in the state of uttar pradesh.
act number xxv of 1965 hereinafter referred to as the act offends article 14 of the companystitution and it arises in the following circumstances.
k. puri for the respondent.
15000/ for the purpose of setting up a panel pins and wire nails industry in hardoi.
clause 8 of the mortgage deed however inter alia provided that if any of the instalments payable by the respondent as mentioned in the deed was number paid on the stipulated date then the entire amount due under the deed could be recovered by the state government as arrears of land revenue.
he applied to the government of uttar pradesh 1017 for a loan of rs.
at the request of the director of industries u.p.
accordingly the high companyrt quashed the recovery proceedings initiated by the revenue authorities.
the judgment of the companyrt was delivered by venkataramiah j. this appeal by certificate involves the question whether section 3 of the public moneys recovery of dues act 1965 u.p.
zamindari abolition and land reforms act 1950.
n. dixit and o. p. rana for the appellants.
