JUDGMENT

VENKATARAMIAH, J.:—This appeal by certificate involves the question whether Section 3 of the Public Moneys (Recovery of Dues) Act, 1965 (U. P. Act No. XXV of 1965) (hereinafter referred to as the Act) offends Article 14 of the Constitution and it arises in the following circumstances.

2. The respondent is a resident of Railwayganj, Hardoi in the State of Uttar Pradesh. He applied to the Government of Uttar Pradesh for a loan of Rs.15,000 for the purpose of setting up a panel pins and wire nails industry in Hardoi. The State Government which was interested in the industrial development of the State accordingly advanced loan of Rs.15,000 to the respondent under a mortgage deed dated March 10, 1960. The respondent was permitted to repay the loan in ten half-yearly instalments commencing from May 1, 1962 together with interest at the rate of 3 percent per annum calculated from March 25, 1960. The mortgage deed provided that the respondent should spend Rs.7,000 out of the loan advanced on the purchase of machineries for manufacturing panel pins and wire nails and the balance of Rs.8,000 on the construction of a building for the purpose of the said industry and for no other purpo