By the Court.—This appeal has been preferred against the judgement and decree dated 17.12.2011 passed by Civil Judge (Senior Division), Azamgarh in Original Suit No. 61 of 2000 by which the suit of the plaintiff-respondent No. 1 was decreed ex parte.

2. The brief facts which give rise to this appeal are that the plaintiffs-respondents (hereinafter referred to as the respondents) filed O.S. No. 61 of 2000 against the defendants-appellants (hereinafter referred to as the appellants) and State of U.P., who was the proforma defendant for the relief of permanent prohibitory injunction and a decree of damages.

3. The averments made in the plaint is that for establishing Dugdh Utpadan Udhyog, an amount of Rs. 8,90,000/- (Rs.7,40,000/- for building and machinery and Rs. 1,50,000/- for working capital) was sanctioned by the appellants. However, the appellants disbursed only Rs. 7,40,000/- towards building & machinery and instead of providing Rs. 1,50,000/- as working capital, they proposed to give only Rs. 50,000/- for working capital, which was not sufficient to start production

4. The plaintiffs-respondents submitted that an additional project for manufacturing of Ghee from Cream,