SUBHADRA FABRICS Vs. STATE OF HARYANA

JUDGEMENT

(1.) Present writ petition has a chequered history. One M/s Carbo Papers (India) Pvt. Ltd availed financial assistance from respondent- Haryana Financial Corporation (for short the Corporation) and mortgaged its land, building, plant and machinery. Since, the borrower failed to repay the amount as per the terms and conditions of the loan, the Corporation took possession of the land, building, plant and machinery in exercise of its rights under Section 29 of the State Financial Corporation Act, 1951.

(2.) The Corporation put the property to sale on 15.3.1996 (Anneuxre P-1). The petitioner was the highest bidder having offered Rs. 16.05 lacs for the entire assets of the said company. The highest bid offered by the petitioner was accepted and an agreement executed on 14.10.1996CWP No. 4339 of 2009 (Annexure P-2). Vide the aforesaid agreement, the Corporation acknowledged the receipt of Rs. 4,01,250/- i.e. 25% of the bid amount and also Corporation permitted the petitioner to pay the balance amount of Rs. 12,03,750/- in 11 quarterly installments starting from 1.11.1996 together with interest @ 19% per annum compounded quarterly w.e.f. 20.3.1996. The physical possession of the assets of the borrower was delivered to the petitioner. Petitioner deposited some of the installments, total amounting to Rs. 10,33,664/-. Since, the entire sale consideration was not paid by the petitioner, the Corporation declared the petitioner as defaulter and put the assets of the borrower, purchased by the petitioner, to sell again.

(3.) In pursuance of the said action, the assets of the Company were sold to M/s Innovative Tec Pack for Rs. 20 lacs. Admittedly, the said purchaser has deposited the entire amount of Rs. 20 lacs and all the rights, title and interest in the property of the borrower stands transferred to the said purchaser.