1 Pradeshik Industrial Investment Corporation of Uttar Pradesh Ltd. (hereinafter referred as PICUP ), has been created and constituted for the development and advancement of industries in the State of Uttar Pradesh, which in comparison to other States, is still economically and industrially backward. PICUP gives financial assistance to entrepreneurs to set up the industries. Often the entire amount as promised to be given, is not given in time, as a result of which industrial units fail to fulfill its obligation in purchasing the plants in time and it suffers losses. Some time due to non - availability of land, raw materials and inadequate supply of electricity, as well as bureaucratic delays in the award of licences and labour unrest, new industrial units fail in their endeavour to make the unit viable. Unit becomes sick and efforts are made to regenerate the same by giving them further financial assistance through financial institution etc. In such situations, often the Courts intervene to adjust equities between the parties.

2. But, there is also another side of the story. Unscrupulous parsons by exerting various pulls and pressures, obtain loan from financial institution like PI