UDYAMI EVAM KHADI GRAMODYOG WELFARE SANSTHA ANDANR. versus STATE OF U.P. & ORS.
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A UDY AMI EV AM KHADI GRAMODYOG \.VELF ARE SANSTHA A ANDANR. v. STATE OF U.P. & ORS. DECEMBER 5, 2007 B [S.B. SINHA AND J.M. PANCHAL, JJ.] Constitution of India, 1950--Article 226-Writ petition-Filing of-Suppressing material fact-Maintainability of-Writ petition c suppressing the fact that previously four writ petitions filed on same cause of action-One such petition filed under Public Interest Litigation challenging constitutionality of provision of Khadi & Village Industries Board Act-Held: Writ remedy being equitable in nature, to be taken ยท1 recourse to with clean hands-Taking recourse to such remedy over D and over again amounts to abuse of process of law-On facts, writ petitioner had filed all the writ petitions on same cause of action- PIL was also pertaining to same issue-Hence not maintainable- Uttar Pradesh Khadi and Village Industries Board Act, 1960-s. 35A. Appellant-Samiti defaulted in payment of loans. Recovery E proceedings were initiated. Several Writ Petitions were filed by the appellant, questioning recovery proceedings. It also filed a Public Interest Litigation wherein appellant No.2 was made a party, questioning the constitutionality of Section 35A ofU.P. Khadi and F _, Village Industries Board Act, 1960. Other Writ Petitions were also filed by the appellant. Fresh recovery proceedings were initiated. Fresh Writ Petition was filed there against. The petition was dismissed by High Court holding that the Writ Petition was not maintainable as the same was filed suppressing the material fact viz. filing of previous Writ Petitions on the same cause of action. Hence G the present appeal. Dismissing the appeal, the Court 933 H 934 SUPREME COURT REPORTS [2007] 12 S.C.R. A HELD: 1.1. Although the prayers made in the four writ applications are apparently different, having gone through the writ applications, it became evident that the core issue in each of the matter centers round recovery of the amount advanced to the appellants by the Bank. Evidently, orders passed in different stages B of the proceedings as also new proceedings based upon fresh calculation on interest on the principal sum had been in question from time to time. Even a Public Interest Litigation was filed wherein appellant No. 2 was a party. May be that validity of Section 35A of the U.P. Khadi and Village Industries Board Act, 1960 was one of c the issues raised therein, but the recovery proceeding even was the subject matter thereof. [Para 9] [937-C, D, E] Arunima Baruah v. Union of India and Ors., [2007) 6 SCC 120, relied on. D 1.2. Respondent Nos. 2 and 3 in their counter-affidavit have drawn attention of the Court to an order passed by the high Court in a Writ Petition wherein it was observed that this was the sixth Writ Petition against recovery. The said Writ Petition have also been dismissed. In the said counter-affidavit, it has further been disclosed E that after being unsuccessful in their attempt to stall the recovery proceedings against the Samiti, a fictitious welfare Sanstha, namely, Udhyami Evam Khadi Gramodyog Welfare Sanstha was started by Appellant No. 2. [Paras 12, 13 and 14] [938-C, D, E; 939-C] 1.3. The attempt on the part of the appellants herein must be F termed as 'abuse of the process oflaw'. A writ remedy is an equitable one. A person approaching a superior court must come with a pair of clean hands. It not only should not suppress any material fact, but also should not take recourse to the legal proceedings over and over again which amounts to abuse of the process of law. Such a G repeated filing of Writ Petitions amounts to criminal contempt. [Para 15) [939-C, D, E) Advocate General. State of Bihar v. A1/s. Madhya Pradesh Khair Industries and A nr., [1980) 3 SCC 311, relied on. H 2. In the Public Interest Litigation, Section 35A of the U.P. โข ยท'"1 UDYAMIEVAMKHADIGRAMODYOGWELFARE 935 SANSTHA v. STATE[SINHA,J.] Khadi and Village Industries Board Act, 1960 was challenged on the A premise that even the cooperative societies were required to take recourse to the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. Such a contention has expressly been rejected by this Court. [Para 10) [937-E, F) Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd and B Ors., [2007) 6 SCC 236, relied on. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5637 of 2007. From the Judgment and final Order dated 19
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