LOTUS HOTEL PRIVATE LIMITED Vs. BANK OF BARODA

JUDGEMENT

(1.) The two Letters Patent Appeals Nos.321/2000 and 322/2000 are directed against the common judgement and order dated 28.3.2000 passed by the learned Single Judge in Special Civil Applications Nos.10755/93 & 13783 of 1993, whereby the learned Single Judge has rejected both these Special Civil Applications.

(2.) Both these Special Civil Applications were admitted by a common order dated 24.4.1994. Paras 8 and 9 of the said order are reproduced as under : "

(3.) Special Civil Application No.10755 of 1993 was filed against the Gujarat State Financial Corporation ("GSFC") and Messrs Jai Laxmi Land Developers and the other petition, Special Civil Application No.13783 of 1993 is directed against the Bank of Baroda as respondent no.1 and GSFC as respondent no.2. Grievances have been raised against the GSFC with regard to the proceedings taken against the petitioner under section 29 of the State Financial Corporations Act, 1951 for recovery of the loan and the due amount thereon and the auction of the properties for which notice was issued on 21.10.1995 in pursuance of which auction was held on 13.11.1995 and the properties were sold out in the auction to Jai Laxmi Land Developers for a sum of Rs.2,77,77,777.00. The grievance raised in Special Civil Application No.13783 of 1993 against the Bank of Baroda is that as against the demand of loan of Rs.51 lakhs, only a sum of Rs.25 lakhs was sanctioned and advanced and therefore, a direction was sought against the Bank of Baroda to advance a further loan of Rs.26 lakhs. A further prayer was also made for additional term loan of Rs.68 lakhs. A direction was also sought against the GSFC in this very petition to furnish an unconditional and irrevocable guarantee to the Bank of Baroda in favour of the petitioner in respect of its so called obligation to release an amount of Rs.26 lakhs forthwith. A prayer was also made in this petition against the GSFC for quashing and setting aside the notice of auction and that transaction of sale of the properties of petitioner no.1 situated in Survey No.512/2/1 with standing construction thereon at the rate of Rs.2,77,77,777.00 to Messrs Jai Laxmi Construction Company at Anand and any consequent transaction thereof entered into between GSFC and Messrs Jailaxmi Construction Company and in respect of any other person. When these petitions came up for final hearing, the learned Single Judge having heard both the sides passed the impugned order dated 28.3.2000, whereby both the petitions were dismissed and against this order dated 28.3.2000, passed by the learned Single Judge, the present Letters Patent Appeals have been filed by Lotus Hotels Pvt. Ltd. through its Additional Managing Director, Jayendra Chandulal Jaiswal.