2004 (2) TMI 347

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..... he petitioners as per its rehabilitation and settlement norms after giving credit for the value of the assets taken over by it and the balance amount standing to the credit of the petitioners be utilised to meet the liability of the respondent No. 2 and other creditors of the petitioners. ( ii ) That the respondent No. 2 be directed to recover and receive its dues from the respondent No. 1 out of the amount which is payable by the respondent No. 1 to the petitioners on account of the assets of the petitioners taken over by the respondent No. 1. ( iii ) That the respondent No. 1 be directed to pay interest to the petitioners on the amount found to be due to the petitioners at the rate at which the respondent No. 1 itself charges from its .....

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..... : "6. The Corporation as an instrumentality of the State deals with public money. There can be no doubt that the approach has to be public oriented. It can operate effectively if there is regular realization of the instalments. While the Corporation is expected to act fairly in the matter of disbursement of the loans, there is corresponding duty cast upon the borrowers to repay the instalments in time, unless prevented by insurmountable difficulties. Regular payment is the rule and non-payment due to extenuating circumstances is the exception. If the repayments are not received as per the scheduled time-frame, it will disturb the equilibrium of the financial arrangements of the corporations. They do not have at their disposal unlimited f .....

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..... resent case show not even a minimal portion of the principal amount has been repaid. That is a factor which should not have been lost sight by the Courts below. It is one thing to assist the borrower who has in tension to repay, but is prevented by insurmountable difficulties in meeting the commitments. That has to be established by adducing material. In the case at hand factual aspects have not even been dealt with, and solely relying on the decision in Mahesh Chandra s case ( supra ), the matter has been decided. 16. Section 29 gives a right to the Financial Corporation inter alia to sell the assets of the industrial concern and realize the property pledged, mortgaged, hypothecated or assigned to the Financial Corporation. This righ .....

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