NAIVEDHYAM ICE CREAMS PRIVATE LIMITED NAGPUR Vs. MAHARASHTRA STATE FINANCIAL CORPORATION AND INDIAN ICE CREAMS LIMITED

JUDGEMENT

(1.) PARTIES by Counsel. Rule. Heard forthwith.

(2.) THE petitioner challenges in this Writ Petition the action of the Maharashtra State Financial Corporation i. e. the respondent No. 1 in disposing of the unit of the petitioner for non-payment of loan advanced to it for the purpose of the said unit. It also claims that the possession of its unit should not be handed over to the Intervener i. e. M/s. Indian Ice-Creams Limited, Bombay, but should be handed over back to it. It further claims that the respondent No. 1 should grant all the facilities for rehabilitation of its unit.

(3.) THE facts are that the petitioner is a Private Limited Company registered under the Companies Act, 1956. According to the petitioner, it was established with an object to manufacture all kinds of milk products and ice-creams etc. It applied to the respondent No. 1 for grant of loan of Rs. 35,00,000/- on 7-12-1988. The respondent No. 1, however, sanctioned it a loan of Rs. 32. 5 lakhs on 7-12-1988. After the loan was sanctioned, the petitioner Company executed necessary documents in favour of the respondent No. 1. A charge was created as per the Mortgage Deed dated 3-9-1989 upon the assets of the petitioner Company for securing payment of loan advanced to it by the respondent No. 1. The petitioner, thereafter, installed its unit in question. However, according to it, there was escalation in prices during the period of the installation of its unit because of which there was paucity of funds for its proper functioning. It could not thus make proper arrangements for marketing of its product. It, therefore, asked for additional term loan of Rs. 5. 5 lacs on 14-1-1990 but the same, according to it, was not given to it by the respondent No. 1 on the ground that it did not pay even the interest upon the amount of loan already advanced to it by reason of which it was a defaulter.