JUDGMENT :

SUDHIR AGARWAL, J.

1. Sri N.C.Rajvanshi, Senior Advocate, assisted by Sri Prakash Chandra Shukla, for petitioners and learned Standing Counsel for respondents 1, 2 and 5. None has appeared on behalf of respondent 3, U.P. Financial Corporation, and respondent 6-Taj Singh Tyagi, though this petition has been called in revise, hence we proceed to hear and decide the same after hearing counsel for petitioners and learned Standing Counsel.

2. This writ petition under Article 226 of Constitution has been filed with a prayer for issue of writ of certiorari to quash sale deed dated 03.9.2001 and supplementary sale deed dated 26.9.2001 executed by U.P. Financial Corporation (hereinafter referred to as “UPFC”) in favour of Tej Singh Tyagi respondent-6. Further a mandamus has been sought commanding respondents to hand over possession of land, building, plant and machinery etc. to petitioners and not to proceed with any recovery.

3. By way of amendment, two prayers have been inserted; one is to issue a writ of certiorari to quash notice dated 13.6.1997 and further a writ of mandamus not to charge interest over loan amount after 10.6.1997, when physical possession of Unit was taken over by UPFC.

4. Facts in brief, as stated in writ petition are that petitioner-1 M/s Garg Oil Industries, Village Ladu Khera, Agra (hereinafter referred to as “M/s GOI”) is a Proprietorship Firm, engaged in the business of producing Oil and Oil Cakes. Petitioner 2, Vinod Kumar Garg is Sole Proprietor of M/s GOI. Industry was established in 1990 with financial assistance from UPFC, who sanctioned a term loan of Rs.1,69,600/-and Rs.1,81,000/-, for plant and machinery, with working capital, respectively. Production was started and instalments were also paid as and when the same fell due, as alleged in para 5 of writ petition.

5. In 1995, petitioners applied for Working Capital Term Loan of Rs.9 lakhs, which was also sanctioned and disbursed. In 1997, however, UPFC started proceedings under Section 29 of State Financial Corporation Act, 1951 (hereinafter referred to as “Act, 1951”) and locked the Unit. Petitioners made various representations but same remained unheeded. There was a Government Order dated 13.11.1995 providing for rehabilitation of Sick Industrial Establishments, hence, petitioners made representation dated 04.03.2000 to General Manager, District Industries Centre, Agra (hereinafter referred to as “GMDIC”) to declare petitioner’s Unit sick and proceed for rehabilitation and revival of Unit by recomputation of financial liability of Financial Institutions. As nothing was done on the said representation, petitioners, M/s GOI came to this Court in Writ Petition No.39334 of 2000, which was disposed of vide judgment dated 05.9.2000, which reads as under :

“Heard learned counsel for petitioner and Sri H.N.Misra for U.P.Finance Corporation.

The petitioner claims that his unit has become sick and it has applied for rehabilitation vide Annexure-3 and 5 to the petition. This petition is disposed of with the direction to the authority concerned Corporation to decide petitioner’s application for rehabilitation preferably within six weeks in accordance with law. If the petitioner files certified copy of this order before the said authority within two weeks from today the impugned recovery shall remain stayed, till disposal of the said application, unless the petitioner’s application for rehabilitation has already been decided.”

6. Pursuant thereto, Additional Director, Industry, vide letter dated 06.01.2001, communicated petitioners a decision of Divisional Level Committee informing that petitioner’s claim for rehabilitation was already rejected in April, 2000 but this fact was concealed in the above writ petition. Further, One Time Settlement was sanctioned by UPFC in 1998 but that was not adhered to and complied with by M/s GOI. Only Rs.96,000/-was dep