SICOM LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a dispute between two wings of the State. Each one is trying to claim priority over the other.

(2.) The Government of India, in exercise of powers conferred by sub-section (1) of section 46 of the said Act, issued Notification dated 11th December, 1986, extending provisions of various sections amongst other, section 27, 29, 30,31, 32A to 32F, 41,41A and 44 of the said Act of the said Act to the petitioner. The petitioner is, therefore, deemed State Financial Corporation within the meaning of section 46 of the said Act.

(3.) The petitioner, under an Indenture of Mortgage dated 22nd December 1986 has advanced a sum of Rs. 51,00,000/- by way of term loan to one M/s Nihal Cast Nylon Pvt. Ltd ("the borrower" for short). In consideration of the petitioner advancing the said term loan, the borrower created a first charge by way of legal mortgage of its fixed assets situate at its factory premises at Satara as well as the first charge by way of hypothecation/charge on the plant and machinery, electrical and other installation furniture and fixtures acquired by them lying in the factory; and/or to be acquired by them; described in the Schedule annexed to the said Indenture of Mortgage. The borrower, for having borrowed additional loan amount, has also executed second indenture of mortgage dated 22nd December 1986 so as to create charge on its movable and immovable assets.