A.P. Deshpande, J.

The petitioner questions the legality and validity of an order dated 25.2.2002 passed by the respondent No. 3, the Deputy Collector and District Recovery Officer whereunder a sum of Rs. 2,97,859/- is directed to be recovered from the present petitioner on account of he having furnished personal guarantee for higher purchase loan sanctioned to the respondent No. 2. The second respondent is a proprietary concern of which one Mr. Marshall D’Souza is the proprietor. Mr. Marshall D’Souza is the brother of the petitioner and is the principal borrower. The respondent No. 1 is a Corporation which had advanced higher purchase loan to the respondent No. 2 borrower.

2. The proceedings in question are governed and regulated by a special statute called the Goa, Daman and Diu Public Moneys (Recovery of Dues) Act, 1986. Section 2(c) defines "Corporation" so as to mean the Financial Corporation established or functioning in this Union Territory and includes any other Corporation owned or controlled by the Central or the State Government specified by the State Government by a Notification in the Official Gazette. It is undisputed and is an admitted position that the respondent No. 1 is a Corporation within the meaning of Section 2(c) of the Act.

3. Section 3 of the Act provides for recovery of dues as arrears of land revenue from a person who fulfills the character envisaged in sub-section (1). The Act provides for a scheme for the speedy recovery of certain classes of dues payable to the State Government, Financial Corporations and other Corporations owned or controlled by the State Government, Government Companies and nationalised and other Banks. With the said object in mind- the statute prescribes an expeditious mode for recovery of the dues. Section 3 reads thus :

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 to the Corporation in respect of a loan raised by an industrial concern; 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 fi