Devi Prasad Singh :- The brief facts giving rise to the present writ petitions filed under article 226 of the Constitution of India, relate to repayment of loan by the borrower to the Pradeshiya Industrial and Investment Corporation, Uttar Pradesh (in short, "the PICUP"), as well as auction and sale of the industry on account of default of payment of loan.

Originally, M/s. U.P. Asbestos Limited (in short, "the UPAL") was engaged in manufacture and sale of asbestos sheets and cement from its industry situate at Mohanlalganj, Lucknow. It was enjoying the benefit of trade tax exemption under section 4A of the Trade Tax Act, 1948 for a period of eight years, vide letter dated October 23, 2000. Against the said exemption, under section 8(2A) tax deferment liability was granted and against that, the PICUP granted "interest-free trade tax deferment loan" to UPAL for the periods 1996-97 to 1999-2000. The properties were mortgaged and the second charge was created by the UPAL on all their movable and immovable assets, like assets of asbestos and cement unit.

UPAL sold its cement unit situate at Mohanlalganj, Lucknow to M/s. U.P. Cement Limited (in short, "the UPCL") after obtaining