JAWAN FRUITS AND VEGETABLE Vs. ORISSA STATE FINANCIAL

JUDGEMENT

(1.) THE petitioner, a small -scale industrial unit, was sanctioned a total loan of Rs. 7,45,017 for his factory to produce pickles and sauces, etc. from fruits. He received an amount of Rs. 5,94,677. The balance amount of loan was not disbursed in his favour for which he has approached this court for an appropriate direction.

(2.) IN the counter -affidavit the Orissa State Financial Corporation states that even though a major portion of the amount was advanced and that the Corporation on its own persuaded the supplier of the machinery to give quick delivery, yet, because of the inaction of the petitioner, he being not serious in bringing out the project, the Corporation cancelled disbursement of the balance amount. Further, according to the Corporation, since this advancement of the loan was under the refinancing scheme, it was for a period of three years and since the petitioner did not complete the project within that period, that was another ground for not disbursing the balance amount. Thus the Corporation recalled the loan by notice dated May 14, 1993 and June 20, 1995. When the petitioner did not repay the amount nor was prepared for a final settlement in spite of the above notices, the Corporation seized the unit on January 11, 1996.

(3.) THERE is no dispute with regard to non -disbursement of the balance loan amount of Rs. 2,19,382. Admittedly, the petitioner is in default for payment of the loan amount and that the unit has been seized. But by our interim order, we directed not to hand over possession of the unit without leave of the court.