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2004 (3) TMI 422

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..... t the 1st respondent did not repay the loan, petitioner exercised its rights under section 29 of the State Financial Corporations Act, 1951, (hereinafter referred to as "the Act"), and claims to have effected the sale of the rice mill in favour of the 2nd respondent, on the basis of a tender, opened on 16-1-2003. The 1st respondent filed O.S. No. 56 of 2003, before the 3rd respondent, claiming the relief of declaration of his title; restoration of the possession of the rice mill, recovery of a sum of Rs. 5 lakhs, towards damages, and for grant of a perpetual injunction against the petitioner, 1st respondent and two others. The petitioner filed written statement, and the suit is pending disposal. 3. Sri Y.N. Lohita, learned counsel for t .....

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..... ndent is a tribal, and the rice mill is situated in an agency area. The petitioner seized the rice mill on the ground that the 1st respondent committed default. It ultimately put the unit to sale through tender notice dated 27-12-2002. The 2nd respondent alone submitted his tender and the same was accepted. 6. Alleging that the unit was seized highhandedly with the collusion of some private individuals, the 1st respondent filed O.S. No. 56 of 2003 before the 3rd respondent. Under section 4 of the Regulation, every suit against a member of a Scheduled Tribe (ST), shall be instituted only in the Court having jurisdiction over the agency tracts. The District Collectors, Agents to Government, and the Special Deputy Collectors, in the cadre .....

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..... suit involves complicated questions of law and the Agent to the Government may not be in a position to adjudicate upon them effectively. 8. It is not uncommon that powers of adjudication, which are otherwise exercisable by the Courts of law, are conferred upon specialized agencies, depending on the nature, or residence of parties, subject matter of proceedings etc. Conditions and situations prevailing in agency tracts, are invariably different from those obtaining in the rest of the areas. In view of the typical lifestyle, innocence and backwardness of the persons residing in agency tracts, special provisions have been made to protect them by the Governments, be it, before or subsequent to independence. The matters in relation to such a .....

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..... institution of the suits before the 3rd respondent under Regulation made under the Constitution. If the submission of the petitioner that the 3rd respondent may not be in a position to exercise adjudicatory powers effectively, is extended to its logical end, the exercise of powers by the petitioner under section 29 of the Act, in various cases, or at least, in the present case, deserved to be treated as an imperfect. For this reason, it is rather derogatory on the part of the petitioner to have doubted the capacity of the 3rd respondent to adjudicate upon the matter. 11. The petitioner contends that the bias exhibited by the 3rd respondent in favour of the 1st respondent can be discerned from the fact that no Court fee was collected, t .....

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