9911796707
TMI Blog2003 (10) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... Restaurant- cum -Guest House, Bhubaneswar in exercise of powers under sections 29 and 30 of the State Financial Corporation Act as well as action of the said Corporation in selling the aforesaid hotel unit by auction. The petitioner in O.J.C. No. 10177 of 1997 stood as a guarantor for the loan obtained from the Orissa State Financial Corporation for purchase of the aforesaid hotel and has filed this writ application challenging the notice under section 30 of the State Financial Corporation Act asking him to pay defaulted dues. 2. One Raicharan Champati, since dead, purchased the hotel in question from the Orissa State Financial Corporation by mutual transfer from the earlier owner and liabilities of the previous owner stood transferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceased Raicharan Champati being nephews and having come to know about such seizure and sale have filed this writ application. Shri Bijan Ray, learned senior counsel appearing for the petitioners in both the cases submitted that after the unit was purchased by late Raicharan Champati, down payment of Rupees two lakhs had been made. The loan was sanctioned by the Corporation in favour of Raicharan Champati for renovation of the hotel unit and first instalment was due on 31-12-1996. Therefore, by the time notice under section 30 of the Act was issued in the month of November, 1996, there was no amount due from late Raicharan Champati and therefore on the basis of such notice the unit could not have been taken over under section 29 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that demand notice issued on 18-11-1996 recalling the entire loan on the ground that Rs. 50,000 had not been paid towards principal dues was a mistake. 4. In view of what has been stated in the petition and partly admitted in the counter-affidavit, it is clear that late Raicharan Champati had purchased the hotel unit by way of mutual transfer with consent of the Financial Corporation in March, 1996 on payment of Rupees Two lakhs as down payment. There appears to be no dispute about the fact that first instalment out of the total loan amount was due to be paid on 31-12-1996. In view of such admitted position, there was no occasion on the part of the Corporation to issue notice on 18-11-1996 recalling the entire loan on the ground that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under section 29 of the Act was illegal and improper. 5. Question that arises for consideration now is whether at this point of time any direction can be issued for restoration of the unit in favour of the petitioners ? There is no dispute that the opposite party No. 4 has purchased the unit in auction and is in possession of the same since 1997. Learned counsel appearing for the opposite party No. 4 also, submitted that after taking over the unit, a lot of investment was made and at this stage if the unit is restored to the petitioners, the opposite party No. 4 shall be put to irreparable loss. Having gone through the counter-affidavit filed by the opposite party No. 4, we are also of the view that it will not be appropriate on the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the opposite parties 1 to 3 in OJC No. 8826/97 it appears that after taken over the unit the same was sold to opposite party No. 4 for an amount of Rs. 17,68,398.35 on 18-6-1997. The figure mentioned in Annexure-5 indicates outstanding dues as on 30-12-1996. This notice is dated 10-6-1997 and admittedly the unit was taken over in January, 1997. Since the unit was taken over in January, 1997, there was no reason for the Corporation to issue notice to the petitioner therein in June, 1997 to clear the amount. However, the unit having been sold for Rs. 17,78,398.35 at best the Corporation can claim for payment of balance dues and not the entire dues. Such dues shall be calculated and interest thereon shall be charged up to the date it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
