GOKUL PRASAD Vs. STATE OF BIHAR

JUDGEMENT

(1.) FREE-HOLD land measuring 1328 sq. ft. With building thereon including the business, which was being run in the name and style of M/s. Vivek Printing Press, shahganj in the town of Patna, originally belonged to a partnership firm, of which the writ petitioner Gokul Prasad was one of the partners. Said partnership firm fell in arrears and action was taken under s. 29 of the State Financial Corporation Act, 1951. Writ petitioner purchased the property in an auction sale by the Bihar State financial Corporation, hereinafter referred to as 'the Corporation' at a price which was outstanding against the partnership firm. The outstanding dues against the partnership firm were in the vicinity of Rs. 3 lacs. Writ petitioner got exclusive possession of the property in the year 1991. He deposited rs. 80. 000/ Rs. 27. 000/- and Rs. 40. 000/-total amounting to Rs. 1,47,000/- in the year 1991, 1994 and 1996 respectively, but thereafter did not deposit any amount and thus, fell in arrears.

(2.) THE Corporation issued advertisement, which was published in the Newspaper 'hindustan Times' in its issue dated 11th of december, 2002. According to the advertisement in pursuance of the recovery action initiated under S. 29 of the State Financial corporation Act, hereinafter referred to as 'the Act,' the Corporation had received the offer for sale of the assets of the writ petitioner for Rs. 8. 25 lacs. The Corporation invited the offer from interested parties to purchase the assets on substantially better price along with earnest money. The offers received in pursuance of the aforesaid advertisement were not to the satisfaction of the Corporation and as such, no sale was made in pursuance thereof.

(3.) THE Corporation negotiated with the prospective purchasers, namely, respondent nos. 4 to 8, who agreed to purchase assets for a total sum of Rs. 8. 25 lacs. They deposited the entire amount In one instalment. Ultimately the Corporation took over the mortgaged/hypothecated assets by order contained in memo dated 25-9-2007 and handed over the possession of the mortgaged/hypothecated assets to them.