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2001 Supreme(All) 555

G.P.MATHUR, S.K.JAIN
U. P. FINANCIAL CORPORATION – Appellant
Versus
GARLON POLYFEB INDUSTRIES – Respondent


Advocates Appeared:
P.S.Baghel, RAJESH SRIVASTAVA

G. P. MATHUR, J.

( 1 ) THIS appeal under Order 43, Rule 1 (r), C. P. C. has been preferred by the defendant against the order dated 6-1-2001 of Civil Judge (Senior Division), Kanpur Nagar, by which injunction application filed by the plaintiffs was allowed and the defendant-appellant has been directed to take recourse to proceedings under S. 29 of the State Financial Corporation Act (hereinafter referred to as the Act) and to recover the amount by enforcing the personal liability only if entire amount due is not recovered in the aforesaid manner.

( 2 ) THE case set up by the plaintiffs-respondents is as follows. The plaintiffs Nos. 1 and 2 are companies registered under the provisions of Indian Companies Act and plaintiffs Nos. 4 and 5 are common directors in both the companies. The plaintiffs applied for loan and the Uttar Pradesh Financial Corporation (for short UPFC) granted a term loan of Rs. 45. 50 Lacs a working capital term loan of Rs. 55 lacs and ERS loan of Rs. 81 lacs to the plaintiff No. 1. The plaintiff No. 2 was sanctioned a working capital term loan of Rs. 13 lacs. There was some dispute with the authorities of Central Excise Department, due to which working of the uni












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