IN THE HIGH COURT OF JUDICATURE AT PATNA LPA No.319 of 2009 BARHAMDEO NARAYAN son of late Sheolal Chowdhary resident of Mohalla Danka Kuncha, P.S. Khajekalan, Patna City, Patna Versus 1. THE BIHAR STATE FINANCIAL CORPORATION, Frazer Road, Patna through its Managing Director. 2. Managing Director, B.S.F.C. cum Specific Authority under State Financial Corporation Act, Bihar State Financial Corporation Office, Frazer Road, P.S. Gandhi Maidan, town & district Patna. 3. Branch Manager, Patliputra East Branch, Bihar State Financial Corporation, Nasheman Building, Dak Bungalow Road, Patna. 4. Rajesh Sinha son of Sri Rabindra Kumar Sinha resident of 129, Anandpuri, West Boring Road, Patna – 1. 5. Sri Ram Prabesh Singh son of late Raj Ballav Singh resident of Mohalla Digha, Patna – 3. 6. Manoj Kumar Sinha son of Lalit Kumar Sinha, resident of Anandpuri West Boring Road, Patna – 1. 7. Sri Awanindra Kumar Sinha son of Dr. Jawaharlal, resident of Nalanda Colony, Bariyatu, Ranchi. ----------- 4 06/07/2009 Heard learned counsel for the appellant and learned counsel for the Bihar State Financial Corporation. The main submission on behalf of the appellant is that after he withdrew from the affairs of the Company as a Director by submitting resignation, the Financial Corporation could not realise the dues of the Company from the appellant only because when he was the Promoter/Director, he had offered personal guarantee for the loans advanced to the Company. According to the learned counsel for the appellant, provisions of the Contract Act came to the help of the appellant because subsequently there was a fresh agreement between the Company and the Financial Corporation after the Company came to be represented by new set of Directors. In our view the writ Court has rightly observed that the petitioner/appellant has the statutory remedy of denying his liability in - 2 - terms of section 9 of the Bihar & Orissa Public Demands Recovery act, 1940 (hereinafter to be referred to as the Act). In the facts of the case we are confident that the Certificate Officer shall keep the legal and factual position under consideration and make attempt to realise the dues of the Company first from the assets of the Company, then from the personal guarantee given by the subsequent Directors and Managing Directors and only thereafter if any thing remains un- realised, there may be an occasion to demand the remaining dues from the appellant-petitioner. Ofcourse this situation will arise only if the objection filed by the appellant-petitioner under section 9 of the Act does not find favour with the authority. With the above observation, this appeal is disposed of. (Shiva Kirti Singh, ACJ.) (Anjana Prakash, J.) AMIN