Guarantors are jointly and severally liable for debts owed by a principal debtor, and courts can pursue them even if the principal's assets are in the creditor’s possession.

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 PICUP, and instead of setting up a viable industrial unit, they squander away the money in the marriages of their kith and kins, building houses for their residence and furnishing it with lavish fittings and fixtures and enjoy the hospitality of five star hotels. They never bother to pay off the loan, which they have taken from the financial institution and when notices purporting to be one under S.29 of the U.P. Financial Corporation Act , are issued, they file civil cases or the writ petitions before the High Court and often obtain stay order from the Court and proceedings are stalled for years. If one case is dismissed, they prefer appeal and when appeal is finally dismissed even from the apex Court , they start other innings by filing the writ petitions again and again, to foil the effort of the financial institution to recover the amount. While granting interim order, the Courts often forget that if the finance of such financial institution would be obtained out, how genuine persons would receive the financial help and assistance.

3. With this prelude, we have to examine the facts of the present case. These writ petitions are an example to show as to how the effort of PICUP to recovery the loan it had advanced, has been thwarted by the petitioners by filing civil cases and writ petitions one after the other. Even when the apex Court of the Country, put up a final seal, the petitioners again made effort by abusing the process of law, before this court to file a writ petition and succeeded in obtaining the interim orders. But, before dealing with the factual matrix as set out in the writ petition, even the court should make an introspection as to how long it will allow such persons to play the game of draught and covert the Court as to draught Board.

4. Present writ petitions are filed by Managing Directors, Directors of M/s. Tirpati Plywood Product ( P) Ltd. village Rajepur, Post Bahradapur, District Lakhimpur Kheri as well as its guarantors, who stood security for the payment of the loan, which, the said Company had obtained from PICUP. They have assailed the recovery certificates issued against them personally, notices of attachment of their properties, sale declaration, sale proclamation etc. They have also prayed for the issuance of a writ in the nature of mandamus commanding the respondents that the loan be recovered from the assets of the Company, which