JUDGMENT - T.K. CHANDRASHEKHARA DAS, J.:---Petitioner challenges the Constitutional validity of the Goa, Daman and Diu Public Monies (Recovery of Dues) Act, 1986, (hereinafter called "the Act"), particularly section 3 thereof. The section 3 of the said Act reads as follows :-

"3. Recovery of dues as arrears of land revenue.-

(1) Where any person is a party ;-

(a) to any agreement relating to a loan, advance or grant given to him or relating to credit in respect of, or relating to hire purchase of goods sold to him by the State Government, the Corporation or as the case may be; the Government Company by way of financial assistance; or

(b) to any agreement relating to a loan, advance or grant given to him relating to credit in respect of, or relating to hire purchase of goods sold to him by a Bank or Government Company, as the case may be under Government sponsored scheme, or

(c) to any agreement relating to a guarantee given by the State Government or the Corporation in respect of a loan raised by an industrial concerned; or

(d) to any agreement providing that any money payable thereunder to the State Government or the Corporation shall be recoverable as arrears of land revenue under the provisions of the Goa, Daman and Diu Land Revenue Code, 1968 (Act 9 of 1969) and such person -

(i) makes any default in payment of the loan or advance of any instalment thereof; or

(ii) having become liable under the conditions of the grant to refund the grant or any portion thereof, makes any default in the refund of such grant or portion or any instalment thereof, or

(iii) otherwise fails to comply with the terms of the agreement-

then, in the case of the State Government such Officer as may be authorised in that behalf by the State Government by Notification in the Official Gazette, in the case of a Corporation or a Government Company, the Managing Director thereof or where there is no Managing Director, the Chairman thereof, by whatever name called, and in the case of a Bank, the local agent thereof by whatever name called, may send to the Collector a certificate as early as possible in the prescribed form mentioning the sum due from such person and requesting that such sum may be recovered as if it were an arrear of land revenue under the provisions of the Goa, Daman and Diu Land Revenue Code, 1968 (Act 9 of 1969);

(2) The Collector on receiving the certificate shall after making such enquiries (including giving hearing to the party affected) as he deems fit proceed to recover the amount stated therein as aforesaid as arrears of land revenue under the provisions of the Goa, Daman and Diu Land Revenue Code, 1968 (Act 9 of 1969);

(3) On recovery of any amount under sub-section (2), the same shall be paid over to the State Government, Corporation, Government, Company or as the case may be, bank after deducting, except in the case of amount to be paid to the State Government, such portion of the amount realised, as cost of collection, as the Collector may deem to be reasonable.

(4) No suit for the recovery of any such due as aforesaid shall lie in a Civil Court against any person referred to in sub-section (1) and no injunction shall be granted by a Civil Court in respect of any action taken or intended to be taken in pursuance of the right conferred by this section."

2. The petitioner is a Company registered under the provisions of Companies Act, represented by its Managing Director Mr. Umesh V. Prabhu. Petitioner had taken certain loan from the 2nd respondent (we are not very much concerned about the actual amount of the loan taken by the petitioner in the nature of the contention raised in the writ petition). It appears that the petitioner committed default for repayment of such loan in terms of the agreement executed between the petitioner and the 2nd respondent has invoked section 3 of the Act for realising the loan amount in terms of the agreement. A notice under section 3 has been issued to the petitioner and the 2nd respondent has purs

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