The liability of the guarantor is co-extensive with that of the principal borrower, and recovery proceedings can be initiated against the guarantor without first recovering the amount against the principal debtor.

Hemant Gupta, J.

1. The petitioner has challenged the recovery of the loan amount granted to respondent No. 3 under the Punjab State Aid to Industries Act, 1935 (for short the Act).

2. Vide agreement dated 9.3.1977, a sum of Rs. 5,000/- was advanced as loan to Smt. Satya Sharma, respondent No. 3 for the purpose of development of Foundary Unit. The petitioner has agreed in accordance with Rule 7 of the Rules framed under Section 46 of the Act to stand as surety for the repayment of the said loan.

3. Since there was default by respondent No. 3 to make the payment of the loan amount, the State Government in exercise of the powers conferred under Section 35 of the Act granted sanction to recover the entire amount of loan of Rs. 5,000/- together with penal interest accrued thereon from Satya Sharma as well as surety as arrears of land revenue. After the State Government has ordered to recover the amount as arrears of land revenue a notice was issued by the Assistant Collector II Grade, Union Territory, Chandigarh upon respondent No. 3 but the loan amount was not paid. On 13.1,1982, a notice was served upon the petitioner as well as upon respondent No. 3 for repayment of the loan but still the amount was not paid. Thereafter, Assistant Collector II Grade initiated the proceedings for attachment of the properties of the petitioner.

4. The petitioner has filed the present writ petition alleging therein that the Assistant Collector is proceeding with the recovery proceedings of amount of Rs. 7639.92 paise without any sufficient reasons and without giving any notice. Reliance was placed upon Section 23 of the Act to contend that no declaration in terms of the aforesaid provisions have been issued which may entitle the respondents to recover the loan amount as arrears of land revenue.

5. Mr. Gaurav Chopra, learned counsel for the petitioner has vehemently argued that no recovery against the petitioner who is a surety can be initiated without exhausting the remedies of recovery in terms of Sections 67 and 68 of the Punjab Land Revenue Act, 1887 against the principle borrower. It is only when such process is not able to satisfy the recovery of the total amount the recovery proceedings could be initiated against the petitioner for the recovery of the balance, if any, and that too after complying with the procedure prescribed under law.

6. The petitioner has placed reliance upon a Division Bench of this Court reported as Bhagwan Dass v. The Estate Officer, Chandigarh and Anr., 1968 P.L.J. 260 to contend that all processes under Sections 68 to 76 of the Act must first be exhausted.

7. After going through the pleadings and after considering the arguments addressed by the learned counsel for the petitioner. I am of the opinion that the writ petition has no merit and is liable to be dismissed.

8. Under Section 35 of the Act, the State Government is competent to order recovery of the amount due as arrears of land revenue notwithstanding anything contained in Sections 23, 24 and 25 of the Act. Section 35 of the Act reads as under;

35. Notwithstanding anything contained in Sections 23, 24 and 25 any amount payable to the State Government under this Act or by virtue of any contract entered into under this Act including interest and costs. If any, may with the previous sanction of the State Government, be recoverable as arrears of land revenue."

9. In exercise of the powers conferred under Section 35 of the Act, the State Government has passed an order on 5.9.1979, Annexure R5 wherein the loan amount has been ordered to be recovered as arrears of land revenue. Thereafter, the petitioner has been served notice as mentioned in para No. 3 of the written statement. The petitioner has not filed any rejoinder to controvert the averments made in the written statement. It is, thus, apparent that a notice was issued calling upon the petitioner to pay the amount which has been ordered to be recovered as land revenue.

10. Reliance of the petitioner on B