The petitioners in these two original petitions are the Directors of a Company by name Veneers and Laminations (India) Ltd. The company was the highest bidder at an auction sale of rosewood conducted on 26-4-1983 by the first respondent, but the auction was not confirmed in its favour, because of default in complying with the requisite formalities. The rosewood was therefore re-auctioned and the Government

sustained a loss of Rs. 77,360-60 at the re-auction. When proceedings were initiated for recovery of the amounts under the Revenue Recovery Act (the RR act) the company filed writ petition O.P.No.1790 of 1989 challenging the proceedings as incompetent. That was dismissed. Subsequently the movable assets of the company were attached and sold. The amount fetched being insufficient to discharge the loss sustained by government, proceedings were initiated again under the RR Act, but this time, against the Directors of the company, viz .the petitioners as if they were liable to make good the amount. All of them were served with notice, Ext. P4, under S.7 of the said Act. The Directors of the company have thereupon filed these original petitions contending that they have no