SACHIDANAND ROY Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS decision rendered in L.P.A. No. 1301 of 1996 governs the disposal of L.P.A. Nos. 1297, 1298, 1299, 1300, 1307, 1308 and 1321 of 1996. This L.P.A. (L.P.A. No. 1301 of 1996) and other connected L.P.As, referred to above, arise out of the common judgment rendered in C.W.J.C. Nos. 9436 to 9443 of 1996 by the learned Single Judge on 16th October, 1996, whereby the learned Single Judge by the impugned order has disposed of the writ petitions by directing the appellants as well as the Financial Corporation to remove the seal and unlock the shop premises belonging to Respondent no. 3 in each L.P.As. and further directed that the respondents concerned are entitled to continue in possession as tenant unless evicted in due process of law.

(2.) THE short facts leading to these appeals are as under: The Bihar State Financial Corporation advanced loan to Hotel Nilanjas, Bhagalpur. Further it appears that the loan amount could not be repaid in accordance with the terms and agreement. Therefore the said Financial Corporation had to initiate a proceeding in accordance with the provisions of Section 29 of the State Financial Corporation Act, 1951 (hereinafter to be referred to as 'the Act' only) and pursuant to that thState Financial Corporation took over possession of the said unit in exercise of its powers under section 29(1) of the Act. The appellants have filed the tender for the said unit which was to be sold by the said Corporation under the statutory provisions of Section 29 of the Act. It appears that the appellants' tender being the highest amongst all tenderers, the sale of the mortgaged assets of the said unit was decided in favour of the appellants for an amount of Rs. 14,11,238/90, out of which, Rs. 8,32,018/ - was paid by the appellants and the balance was treated as term loan to be repaid in instalments. After completion of the sale agreement, possession was delivered to the appellants.

(3.) THE respondents -shop -keepers appear to have filed a Civil Suit bearing Title Suit no. 179 of 1992 before the learned second Munsif, Bhagalpur, for a declaration of their status as tenants in the shops on the ground floor and on 6.3.1994 they obtained an order maintaining status -quo. However, on 18.5.1995 the order of status quo appears to have been vacated by the learned Munsif. Apprehending that the appellants shall take action immediately, Shivanand Pandey, Prahlad Pandey, Purnendu Chakravarty, Ajit Kumar, Sanjeet Kumar Bhagat, Abahy Kumar Pandey, Shiv Shankar Prasad, Sanjay Kumar Pandey, approached this Court by different writ petitions being C.W.J.C. Nos. 9436 to 9443 of 1996 seeking relief that the appellants be restrained from locking the shop premises. This Court by its impugned order dated 16th October, 1996, jointly disposed of all the writ petitions with a direction as referred to above. Against that impugned order, these Letters Patent Appeals have been filed.