JAGDISHKUMAR R PATEL Vs. GSFC

JUDGEMENT

(1.) WITH the consent of the learned Counsel appearing for both the sides, the matter is finally heard today.

(2.) THE short facts of the case appear to be that one M/s. Bita writing Instruments Pvt. Ltd. , had taken loan from the respondent No. 1-Corporation, and the said loan was not paid. Therefore, the Corporation in exercise of the power under Section 29 of the State Financial Corporation Act, 1951 (hereinafter referred to as the "act") had taken over the possession of the property. The said property thereafter was put to auction and the Corporation accepted the offer of the petitioner for Rs. 20 lacs being price of the property. Out of which the petitioner had to deposit the amount of Rs. 7 lacs within 30 days and the balance amount of Rs. 13 lacs was to be paid within one year, by four quarterly installments commencing from 1. 2. 2002. The sale offer dated 22. 11. 2001 is produced at annexure-A. It appears that the petitioner thereafter, deposited amount of Rs. 7 lacs, pursuant to the sale offer, on 11. 1. 2002 and also entered into the agreement with the G. S. F. C, pursuant to the aforesaid sale offer. The petitioner made payment of Rs. 3 lacs thereafter, however, it appears that the petitioner thereafter has failed to deposit the requisite amount and therefore, the Corporation took over the possession of the property and posted their security. The petitioner did object to the same and at one point of time, the petitioner was also offered One Time Settlement, whereby he had to pay the amount of Rs. 15,71,315/- as full and final settlement. However, it appears that thereafter, the petitioner entered into correspondence with the respondent-Corporation that there is error in calculation of the amount and the matter remained undecided. The Corporation thereafter, informed the petitioner that as the requisite amount is not paid, the Corporation in its meeting had decided to forfeit the payment made and the property be put to auction for realisation of the money of the Corporation once again. Thereafter, the Corporation issued advertisement for sale of the property on 7. 8. 2005. It is under these circumstances, the petitioner has approached to this Court by the present petition.

(3.) HEARD Mr. Sanjanwala learned Counsel appearing for the petitioner and Mr. Trivedi learned Counsel appearing for the respondent Corporation and its officers.