GUJARAT STATE FINANCE CORPORATION & 1 ANR. Vs. VRAJ FOOD PRIVATE LIMITED THROUGH ITS MANAGING DIRECTOR & 1 ANR.

JUDGEMENT

(1.) THE Gujarat State Finance Corporation -original defendant is in Appeal questioning the judgment and decree dated 27.12.2005 passed by the learned Second Additional Senior Civil Judge, Vadodara decreeing the Special Civil Suit No. 1 of 2002, whereby the plaintiff respondent was held entitled to recover Rs. 7,35,000/ - (Rs. Seven Lakh Thirty Five Thousand only) with interest at the rate of 6% p.a. from the appellant. He was also held entitled to recover the actual possession of the machineries and other material of the ownership of the plaintiffs, which were in possession of the defendants, as also the machineries and other material sold by the defendants. For the convenience, parties as arrayed in the plaint, are referred to herein.

(2.) THE dispute lies in narrow compass. The defendant auctioned land bearing Survey No. 1739 of village: Tundav admeasuring 2480 sq.mt. to realize its dues from one Satya Surya Food Products, who had deposited its title deed with the defendant as security. The plaintiff Vraj Food Pvt. Ltd. was acknowledged as highest bidder, and after deposit of part of sale consideration i.e. Rs. 7,35,000/ -, was put in possession of the land on 19.7.1997. An agreement to sale was also executed on 25.7.1997 but concededly conveyance was never executed.

(3.) THE plaintiff did not pay the remaining sale consideration and instead, instituted Special Civil Application No. 1273 of 1999 raising a title dispute in relation to land in question. The said petition was rejected on 3.8.2001. It is the case of the defendant that thereafter possession of the land in question was taken over from the plaintiff and it was re -auctioned and possession is now with the third party.