IN THE HIGH COURT OF JUDICATURE AT PATNA Letters Patent Appeal No.825 of 2004 In (CIVIL WRIT JURISDICTION CASE 12807/2002) Bihar State Credit and Investment Corporation Ltd. (BICICO), Indira Bhawan, 4th Floor, Ram Charitra Singh Path, Patna, through Managing Director, Bihar State Credit and Investment Corporation, Patna ….. Respondent/Appellant Versus 01. M/S Kwality Papers (P) Ltd. Having its factory at Industrial Area, Phase-III, Fatuha, District-Patna and Registered office at Shanti Complex, S.P. Verma Road, Patna, through it’s Managing Director Kwality Papers (P) Ltd. Patna 02. Sri Manoj Kumar Singh, S/o Sri Lalit Kumar Sinha, Resident of C/o S.K. Tiwari, Road No.1, Postal Park, District Patna, Managing Director, M/s. Kwality Papers (P) Ltd. Having its registered office at Shanti Complex, S.P. Verma Road, Patna 03. Sri Rajesh Sinha, S/o Sri Rabindra Kumar Sinha, Resident of C/o S.K. Tiwari, Road No.1, Postal Park, District-Patna, Director, M/s. Kwality Papers (P) Ltd. Having its registered office at S.P. Verma Road, Patna 04. Sri Awanindra Kumar Sinha, S/o Dr. Jawahar Lall, Nalanda Colony, Bariaty, Ranchi Director, M/s. Kwality papers (P) Ltd. Having its registered office at Shanti Complex, S.P. Verma Road, Patna .... .... Petitioners/Respondents 05. Certificate Officer, Bihar State Credit and Investment Corporation Ltd., having its office at Indira Bhawan, 4th Floor, Ram Charitra Singh Path, patna ….. Respondent/Respondent Appearance : For the Appellant/s : Mr. Nirmal Kumar & Mr. Ranjan Kr. Singh, Advocates For the Respondent/s : Mr. Arbind Kr. Jha, Advocate ================================================== 10. 14.09.2011 The present L.P.A. is filed against the order of the learned Single Judge dated 8.4.2004 in C.W.J.C. No. 12807 of 2002 filed by the respondents for quashing the certificate proceeding being the Certificate Case No. BICICO/85 of 2002 pending before the Certificate Officer of the Bihar State Credit 2 and Investment Corporation Limited purported to be under the provisions of Bihar and Orissa Public Demands Recovery Act, 1914. The matter has been contested by the appellant Corporation. The learned Single Judge has held that on behalf of the guarantors also there is no such stipulation in the guarantee furnished by them to bound by the provisions of Public Demands Recovery Act. Having held to the proceedings have been quashed by the learned Single Judge. It has been contended by the learned counsel appearing on behalf of the appellant Corporation that the Corporation adopts the provision of Bihar and Orissa Public Demand Recovery Act, 1914 for the purpose of recovery of loans. It has been further contended that as they entered into agreement with the guarantors, they are bond by the conditions mentioned in the agreement. The learned counsel also placed reliance on Annexure- F of the agreement entered into by the guarantor annexed to the counter affidavit in the writ petition by which they are bound by the conditions of the provision of Bihar and Orissa Public Demands Recovery Act, 1914. The said fact has been disputed by the learned counsel appearing for the Company and also the guarantor that there is no agreement as 3 such which binds them under the provision of Bihar and Orissa Public Demands Recovery Act 1914. We had also an occasion to go through agreement contained in Annexure-F to the counter affidavit which was a deed of guarantee placed by the Bihar State Credit and Investment Corporation Limited dated 28.2.1985 which sets out that the guarantor are also subjected to terms and conditions of the agreement. The said agreement was entered into with the Company. Under the above circumstances, we are not in agreement with the contention raised by the counsel for the respondents, i.e. the petitioner in the writ petition that they are not bound by the provision of Bihar and Orissa Public Demands Recovery Act 1914. In that view of the matter, we set aside the findings of the learned Single Judge to the effect that the agreement does not provide such condition which is an error on the fact and law. The L.P.A. is accordingly allowed. P.K. (T. Meena Kumari, J.) (Vikash Jain, J.)