C.W.P NO. 10447 OF 2007 - 1 - IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P NO. 10447 OF 2007 DECIDED ON : 26.03.2009 Vivek Bhatia and others ...Petitioners versus HFC and others ...Respondents CORAM : HON'BLE MR. JUSTICE SURYA KANT Present : Mr. S. D. Bansal, Advocate, for the petitioners. Mr. Puneet Gupta, Advocate, for respondents No.1 and 2. Mr. R. D. Sharma, DAG, Haryana, for respondents No.3 and 4. Mr. Vaneet Soni, Advocate, for respondents No.6 and 8. Mr. Ashwani Talwar, Advocate, for respondent No.10. SURYA KANT, J. (ORAL) The petitioners seek quashing of the Recovery Certificate dated 27.11.2006 (Annexure P-8) issued by the Haryana Financial Corporation under Section 32 (G) of the State Financial Corporation Act, 1951. The petitioners have raised various pleas against issuance of the Recovery Certificate against them including : C.W.P NO. 10447 OF 2007 - 2 - 1) Plaint qua them is time barred and no recovery can be effected ; 2) They had already sold the Company/Industrial Unit, along with their liability, if any, to the private respondents No.6 to 10 on 01.06.1994, therefore, no recovery in respect of any liability of the Company can be effected from them; 3) No opportunity of being heard was afforded to them before issuance of Recovery Certificate. As regards contention No.3 noticed above, this Court vide order dated 11.11.2008 directed learned counsel for the respondent-Corporation to verify the facts and make a statement. Mr. Puneet Gupta, learned counsel for the respondent- Corporation has now filed an affidavit dated 24.03.2009 of the Senior Manager (Legal) which clearly suggest that the notice mailed to petitioners No.2 and 3 was not sent at the address given in the Bond of Guarantee. It has transpired that no effective opportunity of being heard has been afforded to the petitioners before issuance of the Recovery Certificate. As the Recovery Certificate which entails civil consequences, has been issued against the petitioners without affording an opportunity of being heard to them, the said C.W.P NO. 10447 OF 2007 - 3 - Certificate dated 27.11.2006 (Annexure P-8) is hereby quashed with liberty to the respondent-Corporation to issue a fresh Recovery Certificate, if so permissible and in accordance with law. No opinion, however, is being expressed with regard to contentions No.1 and 2 raised on behalf of the petitioners and noticed above. Suffice it to say that the petitioners shall be at liberty to raise those pleas in their reply to the Show Cause Notice and the same shall be dealt with by the respondent- Corporation in accordance with law by passing a reasoned order while issuing the Recovery Certificate. Disposed of. Let a copy of this order be given dasti on payment of usual charges. MARCH 26, 2009 (SURYA KANT) shalini JUDGE