( 1 ) THE writ petition under Article 226 of the Constitution has been filed for issuance of certain directions to the U. P. Financial Corporation.

( 2 ) THE case set up in the writ petition is that petitioner No. 1 is a firm which was constituted for carrying on business of manufacturing cycle spokes. The petitioners approached the U. P. Financial Corporation (for short UPFC) for loan and an amount of Rs. 15 lakhs was sanctioned on 24-7-1993 and an additional amount of Rs. 3. 80 lakhs was sanctioned on 31-3-1996. The manufacturing unit of the petitioners was closed in 1997. The petitioners made a request to the UPFC to re-schedule the loan and the said request was accepted and the loan was re-scheduled on 20-4-2000. Sometime thereafter on 24-9-2001 the petitioners made a proposal to the respondents for one-time settlement whereunder they offered to deposit the balance of the principal amount plus 10 per cent of the outstanding simple interest. The petitioners also deposited Rs. 1. 80 lakhs through a demand draft which represented 10 per cent of the total outstanding dues as per the settlement offered by them. The respondents sent a reply dated 10-10-2000 that one-