SICOM LTD Vs. PRABHUDAYAL B CHAMARIA

JUDGEMENT

(1.) The present group of petitions is filed under section 31 (1) (aa) of the State Financial Corporation Act. Since both the parties to the petition agree that the facts in each of the present petition is almost identical and issues raised are also similar, the said group of petitions can be disposed of by a common judgment.

(2.) The facts in Miscellaneous petition No. 56 of 2002 are taken for the purpose of the present judgment.

(3.) The petitioner is the deemed State Financial Corporation within the meaning of section 46 of the State Financial Corporation Act, 1951. The company known as Shree Shyam Fabrics Ltd. , (hereinafter referred to as the said company) approached the petitioner for sanction and grant of term loan. In May, 1989 a request was made to disburse term loan of Rs. 83 lacs for the purpose of establishing the unit of process house for processing of fabrics at Tarapur MIDC industrial Area, Taluka Palghar, Dist. Thane. In 1993, a further request was made for grant of additional term loan of Rs. 150 lacs for the very same project. On 28- 6-1993, even the additional term loan of Rs. 150 lacs was sanctioned. The said company executed a term loan agreement dated 18-10-1993 inter alia containing therein terms and conditions for repayment of the said loan. A deed of hypothecation dated 18-10-1993 was also executed and an equitable mortgage was created in respect of the immovable properties by deposit of the title deeds. The aforesaid securities were given to secure the repayment of the aforesaid loan amount. There was further term loan granted by MSFC and Canara Bank also to the said company. The equitable mortgage was created in respect of the asseu of the petitioner and other financial institutions and banks were pari passu charge holder.