BLZE ELECTRONICS PVT LTD Vs. OSFC

JUDGEMENT

(1.) Since both the Writ Petitions involve common questions, they were heard together & are being disposed of by this common order.

(2.) In WP(C) No. 8617 of 2009, this Court issued notice to the Opp. Parties on 9.6.2009 & directed that till the next listing the sale of industrial assets shall not be finalized by the Opp. Parties. Thereafter M/s. Weighmech represented by its proprietor Shiba Prasad Dash flied an application for intervention. The intervenor is the auction purchaser of the Petitioner's unit in pursuance of the sale notice dated 1.3.2006. This Court on 4.11.2009 allowed the intervention application & the intervenor was impleaded as Opp. Party No. 6 in the said Writ Petition. On the said date, this Court further directed that the amount so deposited by the Petitioner be kept in a fix deposit in any nationalized bank. The intervenor also filed an application for vacation of stay along with the counter affidavit. Thereafter the matter was listed for hearing. While the matter stood thus, the Petitioner filed Misc. Case No. 1411 of 2010 for withdrawal of the Writ Petition as its prayer for settlement of dues under OTS Scheme was accepted by the Orissa Financial Corporation Limited (In short, "OSFC") & communicated to it by letter dated 24.12.2009. In the said letter dated 24.12.2009 of the OSFC, one of the clauses is that the settlement order is subject to any order from the Hon'ble High Court & No Dues Certificate (NDC) shall only be issued in favour of the Petitioner after liquidation of all the loan(s) towards the loan dues of M/s. Blaze Electronics (P) Ltd. as well as M/s. Blaze Metal & Alloys (P) Ltd. to the satisfaction of the Corporation & the submission of the withdrawal order & or disposal of the case filed against the Corporation in respect of industrial concern of the Petitioner. In pursuance of the said letter, the Petitioner has already complied with the terms of payment of dues towards loan account.

(3.) However, the intervenor-Opp. Party No. 6 objected to the withdrawal of WP(C) No. 8617 of 2009 on the ground that it has filed WP(C) No. 1051 of 2010 for issuance of writ in the nature of mandamus directing the OSFC to issue sale letter in favour of it within the stipulated period, accept the balance 75% of the bid amount & hand over the possession of the property which is the subject matter of the auction in pursuance of the sale notice dated 1.3.2006 in respect of Blaze Electronics (P) Ltd. as the intervenor was the highest bidder & had also deposited Rs. 11,96,600 on 11.3.2006 which was 25% of the bid value including EMD which is lying deposit on the OSFC. As per the terms of the sale notice, the OSFC was required to issue sale letter to the Petitioner & on receipt of the sale notice, it had to pay the balance amount of 75% within 90 days from the date of issuance of sale letter. But till date the OSFC did not issue sale letter though it was ready & willing to pay the balance amount. It being the bona fide purchaser & its monies having been blocked for years together, WP(C) 8617 of 2009 should not be allowed to be withdrawn as the Petitioner of WP(C) 8617 of 2009 in connivance with the OSFC wanted to deprive the present Opp. Party No. 6 (Petitioner in WP(C) No. 1051 of 2010) from taking over possession of the Unit. It was further stated by the said Opp. Party No. 6 that the loanee never applied in terms of the OTS Scheme for settlement of the loan amount. It was also stated that its offer having been accepted by the OSFC, the contract has been completed & non-issuance of sale letter in favour of M/s. Weighmech is illegal & contrary to law. Therefore, it objected to the withdrawal of WP(C) No. 8617 of 2009 on the aforesaid grounds.