BIJAYKUMAR Vs. BIHAR STATE FINANCIAL CORPORATION

JUDGEMENT

(1.) In this application the petitioner has inter alia prayed for quashing of the notice dated 13-12-1992 as contained in Annexure-1 to the writ application in terms whereof Bihar State Financial Corporation caused a sale notice to be published inviting tender for putting the unit of the petitioner on auction known as M/s. Allied Paper and Chemical Industries (P) Ltd.

(2.) The fact of the matter shortly stated are as follows : The aforementioned unit belonged to M/s. Allied Paper and Chemical Industries (P) Ltd. which is company registered under the Indian Companies Act having a certificate of incorporation No. 12 )7 of 1975-76 issued by the Registrar of the companies, Bihar dated 22-9-1975. The said Company is not the petitioner. It has been admitted in the writ application that a term loan of Rs. 3 lakhs was sanctioned in favour of the aforementioned Company by the Respondent-Corporation on 30th September, 1975 for setting up a unit for manufacture of mill Board at Shoh Sarai Distt. Nalanda, for which a registered deed of mortgage dated 12-1-1976 was executed mortgaging the properties belonging to the Company. The Respondent-Corporation also sanctioned a sum of Rs. 25,000/- on 15-7-1975, for meeting the over head cost, wherefor the company created an equitable mortgage by deposit of title deeds and executed a loan agreement on 21-7-1976.

(3.) The petitioner on his own showing has become the Managing Director of the said Company. By reason of the impugned auction notice the assets mortgaged by the Company which is a juristice persons were directed to be put on auction. In fact, as is evident from the averments made in the Counter Affidavit, it appears that the unit had been sold on auction on 28-12-1982 and possession of the said unit had been delivered to Shri Abhay Kumar who was the highest bidder on 8-1-1993. Although this writ application was filed on 11-1-93 i. e. after the assets of the company were handed over to the purchaser pursuant to the said auction, Shri Achay Kumar was not impleaded as a party. He has filed an application for intervention on 26-4-1993 wherein he has contended that his offer for a sum of Rs. 4,50,000/-being the highest sum was accepted and the sale letter dated 5-1-93 was handed over to him. It was further contended that the company was thereafter served with a notice dated 7-1-1993 for taking over possession on 8-1-93 whence the possession had been taken over by the intervenor. It has further been stated that a sum of Rs. 500000/- has been invested by him in purchasing a generation and several motors and towards construction and repairs of buildings, purchase of furniture etc.