JUDGMENT

S.B. SINHA, J.—

1.Application of Section 29 of the State Financial Corporations Act, 1951 (the 1951 Act) vis-‘-vis the Uttar Pradesh Public Moneys (Recovery of Dues) Act, 1972 (the 1972 Act) is in question in these appeals which arise out of a common judgment and order dated 29th September, 1999 passed by a Division Bench of the High Court of Judicature at Allahabad in Civil Misc. Writ Petition Nos. 41848 and 34059 of 1999.

2.Before embarking on the questions raised at the bar, we may notice the basic fact of the matter.

3.M/s. Everest Wools Pvt. Ltd. of which Pradeep Kumar Agrawal is a Managing Director took loan from the U.P. State Financial Corporation (Corporation). The company applied for re-scheduling of the loan and the same was granted. Appellant company intended to expand their unit. It applied for grant of loan to the respondent No.3, the Pradeshiya Industrial and Investment of U.P. Ltd. (PICUP). Rs. 47 lacs was sanctioned by it. A sum of Rs. 41.60 lakhs was disbursed to it by March, 1992. Some other amount was also disbursed by way of State Capital Investment Subsidy by the Government.

4.Inter alia on the premise that the appellant-company had purchased some plants