By the Court.—This writ petition was filed on 2.12.1975, for a writ of mandamus directing the respondents not to realise any amount from them as arrears of land revenue and to quash the recovery certificate and citation dated 19.10.1975 for recovery of Rs. 55012.20 as the balance amount to be paid by the petitioner under a hire purchase agreement dated 26.8.1970 with the U.P. Small Industries Corporation Limited, Sarvodaya Nagar, Kanpur.

2. After exchange of affidavits the writ petition was dismissed by a judgment dated 22.8.1995 for the reason that the U.P. Public Moneys (Recovery of Dues) Act, 1972 is applicable to the dues recoverable under the hire purchase agreement. The petitioners filed Civil Appeal No. 7341-7343 of 1997 on the ground that the writ petition was decided in the absence of appellant and their advocate. The Supreme Court, by its order dated October 15, 2003, set aside the judgment and requested the High Court to decide the matter on merits as expeditiously as possible. The writ petition was listed on 6.1.2004 and was dismissed for want of prosecution. The restoration application was allowed on 24.7.2008.

3. An amendment application filed on 27.7.2008 is still pending. In paragraph 16 of the amendment application, it is stated that on 13.2.2008 the Sub Divisional Officer, Khurja,District Bulandshahr has issued an attachment order attaching house No. 272 of petitioner No. 2 situate in Mohalla Laxmanganj, Khurja, District Bulandshahr for recovering Rs. 1,86,121/- and expenses. The Sub Divisional Officer, Khurja has fixed a public auction of the house to be held on 20.3.2008. It is stated in paragraph-18 that the house is valued at Rs. 75 lacs. The petitioner No. 2, under compulsion of the authorities recovering the amount, deposited Rs. 1,10,000/- with Collection Amin on 17.3.2008 vide receipt of the same date and a further amount of Rs. 1,66,022/- vide another receipt of the same date totalling Rs. 2,16,622/-.

4. The petitioners have prayed for adding grounds Nos. (ix) to (xv) challenging the recovery and deposit of Rs. 2,16,622/- under coercion and for misusing the government machinery. They have also prayed to add prayer No. (e) in the prayer clause in the writ petition for a direction to refund the entire amount with 18% interest, and with exemplary costs of Rs10 lacs. It is contended that the amendment application only seeks to bring the subsequent events on the record during the pendency of the restoration application. The amendment application is consequently allowed.

5. Brief facts giving rise to this writ petition are that Shri Govind Swarup Sharma-petitioner No. 2 applied for financial assistance from U.P. Small Industries Corporation Limited (the Corporation) to set up a nut manufacturing factory. The petitioner submitted a guarantee bond and deposited Rs. 11, 440/- towards earnest money and supervision charges and Rs. 2400/- as charges for supply of the raw material. The petitioner then entered into an agreement dated 7.7.1970 with the Corporation. Some machinery was supplied by the supplier of the Corporation between August 1970 to January 1971. The bench grinder was not supplied until 23.1.1971. The petitioner informed the Corporation on 25.1.1971 that the machinery supplied by the supplier is defective and is below standard, and that the complete plant has not been supplied, and issued reminders on 8.2.1971 and 22.2.1971.

6. The petitioner once again informed the Corporation on 18.4.1971 that the machines have not been replaced and that the factory is suffering losses. On 9.6.1971 the Corporation informed the petitioner that the technical staff of the Corporation will visit the premises. On 16.6.1971 the technical staff inspected the factory and found the machinery to be defective, below standard and not workable. The supplier by its letter dated 27.1.1972 informed the Corporation that it is ready to replace the defective machinery and charge lesser price and wanted approval of the Corpo