By the Court.—Challenge in this petition and connected petition is directed against the sale proclamation dated 22.11.2006 issued by respondent No. 2 contained in Annexure 8 to the writ petition.

2. The petitioners, M/s. Naresh Spinners Limited, a company registered under the Companies Act and engaged in the business of manufacturing of cotton yarn was initially established with the appellation Amausi Textiles Mills Ltd. and subsequently, it was christened as M/s. Naresh Spinners Ltd. For its effective working, the Company opened a cash credit limit account for Rs. 50 lac under an agreement with the State Bank of India Main Branch Lucknow, which was subsequently enhanced, to 75 lacs and thereafter to Rs. 95 lac with interest at the rate of 17% per annum. The company it would appear ran into rough weather and outstanding in the account overshot the said limit. Subsequently, the said limit was further enhanced. Again, outstanding against the company overshot the limit. With repeated failure to liquidate the liability, it would appear, the Bank served the notice. It is in this perspective that present litigation erupted.

3. Heard Sri Umesh Chandra, learned Senior Advocate assist