SHYAM NARAIN SINHA Vs. MANAGING DIRECTOR BIHAR STATE

JUDGEMENT

(1.) HEARD learned counsel for the petitioner and learned counsel for the State.

(2.) PETITIONER is the father of the original promoter. One Kamlesh Kumar Sinha set up an industry on disbursement of certain amount of loan in the name of M/s Kamlesh Engineering Works located at Club Road, Arrah. The sanction of loan in favour of the original promoter was made some time in the year 1986 and the term loan was of about 3.05 lakhs. Some repayment till 26.12.1989 was made by him but thereafter in the year 1990 he became traceless. In absence of repayment the respondents -Bihar State Financial Corporation (hereinafter referred to as the 'Corporation ') initiated a proceeding under Section 29 of the Act. Out of concern or may be family pride father of the original promoter (the present writ petitioner) decided to take responsibility upon himself not only to settle the dues of the Corporation but may be even run the Unit. He decided to communicate with the respondents -Corporation and wrote many a letters in the year 1997. The matter was considered and certain terms and conditions were laid down for the petitioner to fulfill for a reconsideration of withdrawing the proceeding under Section 29 of the Act.

(3.) ANNEXURE -2 is the offer made to the purchaser by the Corporation. The purchaser was supposed to one Sanjay Kumar Chopra for whom the consideration money fixed for the Unit was 2.95 lakhs only. Out of this consideration money he was to pay 25% by way of a Bank Draft within 21 days of the date of issue of the order for confirmation of sale in his favour and balance amount to Rs. 2.95 lakhs was converted into loan repayable in a period of five years in twenty equal quarterly installments and the first installment becoming due on 31st January, 1997. The installment worked out for him was Rs. 11067.58 Paise. The interest component was 20% per annum, rest of the other conditions are not required to be dealt with in detail.