BALDEV SINGH Vs. STATE OF PUNJAB & OTHERS

JUDGEMENT

(1.) Challenge in the present writ petition is to the communication dated 07.05.2014 (Annexure P-16), whereby a notice was served by the Naib Tehsildar, Dinanagar to the petitioner on the basis of recovery certificate issued by the Punjab Financial Corporation for a recovery of Rs.1,91,63,428/-.

(2.) The petitioner availed a loan of Rs.10 lacs for the construction of building and purchase of plant & machinery in the year 1996. The petitioner mortgaged a plot measuring 3 kanals 14 marlas to secure the said loan. In terms of the documents executed, the petitioner made himself liable to pay interest at the rate of 18.5% per annum on quarterly basis. The petitioner defaulted in making payments of the installments, which led the respondent- corporation to take possession under Section 29 of the State Financial Corporation Act, 1951 (for short 'the Act') on 31.08.1999. The petitioner is alleged to have made some payments thereafter. In order to realize the due amount from the petitioner, the property was put to sale in the year 2011 and a sum of Rs.42 lacs was realized. It is, thereafter, the petitioner came to know that a sum of Rs.1,91,63,428/- is still due and payable, which is sought to be recovered from the petitioner herein.

(3.) The sole argument raised by the petitioner is that after the possession of the mortgaged property was taken under Section 29 of the Act and later sale, the respondent cannot charge any interest on the amount payable by the petitioner.