PUSHPA BHANWA Vs. HIMACHAL PRADESH FINANCIAL

JUDGEMENT

(1.) Through a loan agreement executed inter se the deceased husband of the writ petitioner, on behalf of M/s Advid Drugs Private Limited, being its Director, and, the respondent corporation, certain financial assistances were purveyed to the borrower. The apposite loan agreement occurs at page 61 of the paper book. The afore loan agreement was executed by the deceased husband of the writ petitioner, one Anand Bhanwal, on behalf of M/s Advid Drugs Pvt. Ltd., with the respondent financial corporation. Since, defaults occurred in the liquidation(s) of borrowings made by the deceased husband of the writ petitioner. Consequently, the respondent financial corporation, through, its recoursing the mandate occurring in Sec. 32G of the State Financial Corporations Act, 1951, provisions whereof stand extracted hereinafter, issued a notice as becomes carried in Annexure P-9, hence upon, the surviving spouse of one Dr. Anand Bhanwal. In pursuance to Annexure P-9, the Collector Recovery, Himachal Pradesh Financial Corporation issued Annexure P-10, upon, the writ petitioner, wherethrough, it made an order, upon, the writ petitioner to deposit principal borrowings carried in a sum of Rs.1,45,43,345.00 along with interest accrued thereon on or before 19/1/2016, in the office of H.P. Financial Corporation, Shimla. Provisions of Sec. 32G of the State Financial Corporations Act, read as under:-

(2.) The petitioner becomes aggrieved from the issuance of the afore notices, respectively carried in Annexure P-9, and, in Annexure P10, and, hence, is led to institute the extant petition before this Court rather for seeking their annulment(s). The loanee company, named, M/s Advid Drugs Pvt. Ltd., through its Director and authorised signatory one Mr. Anand Bhanwal, made borrowings from the H.P. Financial Corporation. The apposite loan document became executed in the year 1989. The learned counsel for the petitioner argues, that the surviving spouse of Dr. Anand Bhanwal, cannot become encumbered with the outstanding loan liability of her predeceased husband, nor can the respondent financial corporation issue the impugned annexures, upon, her. He erects the afore submission, on anvil of an agreement carried in Annexure P-2, hence executed inter se her predeceased husband, with one V.K. Rishi, and, wherethrough in paragraph No.8 thereof, para whereof stand extracted hereinafter:-

(3.) The authenticity of Annexure P-2 remained not contested by the respondent corporation. However, the respondent financial corporation attempted to rid off all the respective legal efficacies, if any, of Annexure P- 2, on the ground, that it had not approved the mandate (supra) occurring in paragraph/clause No.8 of Annexure P-2. However, the afore made contention before this Court by the learned counsel appearing for the respondent corporation, carries no legal effect, as, a perusal of Annexure R-1(c) appended with the reply on affidavit furnished, to the writ petition, by the respondent-corporation, discloses that latter had rather approved the afore echoings occurring in paragraph/clause No.8, as becomes carried in Annexure P-2. Therefore this Court is constrained to conclude that the effect of the afore paragraph/clause No.8, occurring in Annexure P-2 did completely absolve the predeceased husband, of the writ petitioner from his borrowings as made from the financial institution concerned. As a corollary this Court also concludes that the personal guarantees, if any, as became furnished by Dr. Anand Bhanwal, the predeceased husband of the writ petitioner, would become unamenable for monetization, vis-a-vis, the apposite borrowings made by him, as a Director of the company, nomenclatured as M/s Advid Drugs Pvt. Ltd. Furthermore, the completest indemnity cover hence furnished by one Mr. V.K. Rishi, the executant of Annexure P-2, and, as occurs in paragraph No.8 thereof, does also did completely absolve the predeceased husband of the writ petitioner, from all the apposite liabilities, if any, vis-a-vis, all borrowings made from the financial corporation, and, also does completely absolve his surviving spouse, from hers hence indemnifying the financial institutions concerned, vis-a-vis, the apposite borrowings.