Hon’ble Sudhir Agarwal, J.—In this writ petition, an interesting question of application of limitation to recovery proceedings has been raised, which is of wider public implication.

2. Brief facts, giving rise to present case, are that M/s. Rainbow Steel Limited (hereinafter referred to as “Company”) is a Company incorporated and registered under provisions of Companies Act, 1956 (hereinafter after referred to as “Act, 1956”) and petitioners are Directors of aforesaid Company. On 6.8.1990, Company sought financial assistance from Pradeshiya Industrial and Investment Corporation of U.P. Limited (respondent 1) (hereinafter referred to as “PICUP”) under Equipment Refinance Scheme initiated by Industrial Development Bank of India (hereinafter referred to as “IDBI”) for installation of 15 tons continuous casting machine for the plant used in manufacturing of Ingots/Billots. PICUP sanctioned a loan of Rs. 80.60 lacs on 22.8.1990 under aforesaid Scheme. The bond of guarantee was executed on 29.11.1990 between PICUP and petitioners wherein guarantors agreed for repayment of loa