THE HIMACHAL PRADESH STATE INDUSTRIAL DEVELOPMENT CORPORATION Vs. CHANANA STEEL TUBES PVT. LTD. AND ORS.

JUDGEMENT

(1.) Plaintiff has filed the instant suit for recovery of Rs. 72,37,562.00 with costs and interest @9% per annum from the date of suit till realization of the decretal amount with half yearly rests. It is averred that the plaintiff is a company incorporated under the Companies Act, 1956 and having its registered office at Shimla. Sh. Vinayaka Kahol (Senior Manager), Project of the Corporation is duly authorized by the Managing Director of the Plaintiff in terms of resolution No. 12 dated 18.6.1997, passed by the Board of Directors of the plaintiff company, to sign, verify plaints, institute suits on behalf of plaintiff company and to appoint advocate etc. for prosecuting suits etc.

(2.) One of the various functions of the Plaintiff Corporation is to provide financial assistance in the form of term loans, equity and soft loans (under Seed Capital assistance scheme of IDBI).

(3.) Defendant No. 1 company approached the plaintiff Corporation for the grant loan and was sanctioned a term loan of Rs. 33.00 lacs (Rs. 15.00 lacs on 9.1.1984), Rs. 10.00 lacs on 29.12.1988 and Rs. 8.00 lacs on 2.12.1991) for the construction of factory building, purchase of land and plant and machinery and other assets for setting up an industrial unit for the manufacture of ERW galvanized Black Steel Tubes at Plot No. 10, Sector 3, Industrial Area, Parwanoo, District Solan, H.P. The interest agreed to be paid by defendant No. 1 on the loan amount was 12.5% per annum with half yearly rest on term loan of Rs. 15.00 lacs, Rs. 10 lacs and 19% per annum on Rs. 8.00 lacs.