Judgment

Kirpal, J.-The short question which arises for consideration in this appeal by special leave is whether the Collector was justified in proceeding against the appellant, who was a Director of a company which is alleged to have defaulted in repayment of loan to the Haryana Financial Corporation, without affording the appellant an opportunity of being heard under the provisions of the Haryana Public Moneys (Recovery of Dues) Act, 1979.

2. Briefly stated the facts are that the appellant was appointed as one of the Directors of M/s. Depro Foods Pvt. Ltd., which was subse­quently converted into a public limited company. In 1971 and in 1973 the said company took loans on two occasions from the Financial Corpo­ration. According to the appellant, he resigned as a Director of the company on 25th February, 1974 and the factum of his resignation was communicated to the Registrar of Companies on 11th March, 1974. It is further the case of the appellant that after he ceased to be a Direc­tor of the company, another loan of a sum of Rs. 3 lakhs on the basis of a registered mortgage was taken by the company on 12th November, 1974.

3. It appears that default was committed by the company in re