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2007 Supreme(SC) 1547

J.M.PANCHAL, S.B.SINHA
UDYAMI EVAM KHADI GRAMODYOG WELFARE SANSTHA – Appellant
Versus
STATE OF U. P. – Respondent


S. B. SINHA, J.

( 1 ) LEAVE granted.

( 2 ) EXTENT of Superior Courts' jurisdiction to dismiss a writ petition for alleged suppression of material fact is involved in this appeal which arises out of a judgment and order dated 19. 07. 2006 passed by the High Court of judicature at Allahabad, Lucknow Bench, Lucknow in WP No. 4274 (M/b)of 2006.

( 3 ) BASIC fact of the matter is not in dispute. Appellant is a cooperative society (Samiti ). It applied for loan for establishment of an industry for manufacturing 'aluminum Pottery' from the respondents. A loan of Rs. 5,24,000/- was sanctioned in the year 1991. A sum of Rs. 3,09,000/- was released by the respondents. Again, a sum of Rs. 90,000/- was sanctioned in 1996. It filed an application for grant of loan of rs. 22,00,000/- under the 'consortium Bank Credit Scheme' for establishing an unit for manufacturing P. V. C. Shoe Sole. A sum of Rs. 16,20,000/- was sanctioned and Rs. 13,20,000/- was released. The Samiti allegedly defaulted in making payments. Recovery proceedings were initiated against the samiti. Several writ petitions were filed by it questioning the legality thereof.

( 4 ) A purported public interest litigation was also fi



















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