JUDGMENT

Vinod S. Bhardwaj, J.

Challenge in the present writ petition is to the Recovery Certificate dated 19.11.2015 (Annexure P-6) and the Notification dated 21.09.2015 (Annexure P-3) whereby the respondents have initiated the process for recovery of outstanding dues under the Punjab Public Moneys (Recovery of Dues) Act, 1983 (hereinafter referred to as 'the Act of 1983') by appointing an Authorized Officer for recovery of dues.

Facts And Pleadings of Petitioner

2. The petitioners are the promoters of M/s Rana Sugars Limited and had entered into a Tripartite Financial Collaboration Agreement dated 28.03.2000 with the Company namely M/s Rana Sugars Limited and Punjab Energy Development Agency (hereinafter to be referred as 'PEDA'). The said Tripartite Financial Collaboration Agreement (hereinafter referred to as 'Collaboration Agreement') was later on amended vide a Supplementary Tripartite Financial Collaboration Agreement executed between the parties on 20.11.2000 for setting up of a bagasse based co-generation Project. The petitioners-Promotees as well as respondent No.1-PEDA had invested in the equity share capital of M/s Rana Sugars Limited. The Collaboration Agreement contained a clause whereby the petitioners were bound to buy back the shares of M/s Rana Sugars Limited held by respondent No.1-PEDA after the expiry of 10 years from the date of commercial production of the co-generation project. The date of commercial production of the Project was 13.01.2001. The cause of action to enforce buy back of the shares thus accrued in favour of the respondent No.1-PEDA on 13.01.2011. The respondents did not take any steps for enforcement of Clause 8 (g) of the Collaboration Agreement within the period of limitation i.e. till 12.01.2014 and the only steps that were taken were sending of letters/reminders. On 21.09.2015, the Government of Punjab issued a Notification declaring respondent No.2 as the "Authorized Officer" for recovery of the Government dues, invested as equity by respondent No.1-PEDA, on behalf of the State Government in the matter of M/s Rana Sugars Limited." It is pleaded that no Notification for the appointment of an "Authorized Officer" could be issued as the claim of respondent No.1-PEDA does not fall within the purview of the Punjab Public Moneys (Recovery of Dues) Act, 1983. Accordingly, the petitioners submitted a representation to the respondents invoking the Arbitration Clause in terms of the 'Collaboration Agreement.' However, instead of acceding to the demand raised by the petitioners, respondent No.1-PEDA claimed that an amount of Rs.9,44,93,441.46 is to be recovered from the petitioners and that the liability of the petitioners does not need any determination. A recovery certificate was thereafter issued by the Authorised Officer for the recovery of the above amount calculated upto 30.09.2015 vide Memo dated 19.11.2015. It was further averred that neither any notice was issued to the petitioners nor any opportunity was provided to them to put forth their defence before the issuance of the Recovery Certificate. The process was thus challenged on grounds noted during arguments.

Response of The Respondents

3. A short reply on behalf of respondents No.1 to 3 had been filed wherein it was averred that a baggase based demonstration, co-generation project of 10.2 MW capacity was sanctioned by the Ministry of New