DEEPAK KUMAR Vs. BIHAR STATE OF CREDIT

JUDGEMENT

(1.) HEARD learned counsel for the petitioner and learned counsel for the Bihar state Credit and Investment Corporation Limited.

(2.) THE petitioner has approached this court for a direction upon the respondent-Bihar State Credit and Investment Corporation Limited in short BICICO) to produce the resolution dated 12-12-2006 of the board of Directors of BICICO by which it has been resolved to conduct a fresh valuation of the assets of M/s. Ambuja electrocastings Pvt. Ltd. and to readvertise the unit for sale and then issue a writ of certiorari for quashing the resolution dated 12-12-2006 of the Board of Directors. Further prayer of the petitioner is to quash the letter dated 22-1-2007 (Annexure-8) issued by the Deputy Manager, BICICO (respondent no. 2) through which the petitioner has been informed about the rejection of his re-offer for the purchase of assets of M/s. Ambuja electrocastings Ltd. , on an enhanced consideration amount of Rs. 49. 11 lakhs and also for a direction to command the respondents to execute a deed of absolute sale of the unit of M/s. Ambuja Electrocastings Pvt. Ltd. on an enhanced consideration amount of Rs. 49. 11 lakhs in favour of the petitioner and to issue a no dues certificate to the petitioner regarding the payments received by them.

(3.) THE relevant short facts for the decision of the present case are that the defaulting unit, namely, M/s. Ambuja Electro-castings Pvt. Ltd. was advertised by the BICICO for sale in terms of the provisions of the State financial Corporation Act. In the said advertisement dated 5-12-2004 published in daily Hindi Newspaper "hindustan" the outstanding principal amount was shown as Rs. 34. 50 lakhs. It was also stated that the Corporation reserves the right to accept, reject/ re-negotiate the offer without assigning any reasons. The petitioner made an offer in terms of the said advertisement and ultimately the sale was finalised by the officials of the BICICO in favour of the petitioner for a total consideration of Rs. 34. 50 lacs. By letter No. 2895 dated 10-2-2005 the BICICO communicated tentative acceptance of the offer made by the petitioner for purchase of the mortgaged assets of M/s. Ambuja electrocastings Pvt. Ltd. In the said tentative acceptance, it was mentioned that the acceptance was subject to the final approval of the sale by the Board of Directors of bicico and/or such other conditions that may be imposed by the Board of Directors and it was also stipulated that all the terms and conditions given in the M. O. U. shall be binding upon the purchaser as well as the bicico and shall be treated as an integral part of the terms of the offer. Subsequently, a deed of Memorandum of Understanding was also signed between the parties and the in-charge, Legal on behalf of the BICICO.