SITARAM RICE MILL Vs. ORISSA STATE FINANCIAL

JUDGEMENT

(1.) THE debtor has filed this appeal. Proceeding was initiated Under Section 31 of the State Financial Corporation Act, 1951. The District Judge has found out the liability of the debtor and directed for realisation of the amount by selling the property mortgaged. The said order is under challenge in this appeal.

(2.) IN course of hearing, the respondent was called upon to produce the copy of the accounts/ledger maintained by the Corporation. The counsel for the appellant has submitted a chart indicating that there have been many mistakes in the accounts furnished by the Corporation. The counsel has also argued that pendente lite and future interest is not payable. The counsel for the Corporation, on the other hand, has tried to explain the various discrepancies in the accounts. Prima facie, it appears that the accounting done by the O.S.F.C. requires to be clarified. Unless the matter is remanded to the District Judge, the parties may not get proper opportunity of explaining the various discrepancies or anomalies. It may be necessary to receive further evidence in the matter as the entries which are being challenged may be required to be explained by competent officer of the Corporation.

(3.) THE counsel for the appellant has also challenged the justifiability of commitment charges, whereas the counsel for the Corporation submits that commitment chargers are to be paid. Again, this is a matter which may require further elucidation by the competent officer of the Corporation.