KASHMIR CARBON Vs. STATE OF J&K

JUDGEMENT

(1.) THIS appeal is directed against the judgment passed by learned Single Judge in OWP 40/99 whereby a writ petition filed by the appellant was dismissed on 1.3.2000. Facts regarding which there is no controversy in this case need to be noted are that an industrial unit under the name and style of the appellant was established by its proprietor. Loan for establishing the same was admittedly obtained from the J&K Financial Corporation. It is further not in dispute that the loanee. Industrial Unit did not adhere to the repayment scheduled in terms of the loan documents subject to which loan in question was obtained.

(2.) A sum of Rs. 21, 38,180.86 paisa was due and outstanding as on 15.3.97 inclusive of interest upto this date. Out of this amount, a sum of Rs. 5.49, 342.86 paisa was the principal component. Rest was interest at the agreed rates and rests and other moneys.

(3.) AFTER having waited for quite some time and after having enabled the appellant to repay the loan in question and after being satisfied that the amount is not likely to be retrieved, action under Section 29 of the State Financial Corporations Act was proposed to be taken. Thus notice under Section 29 of the State Financial Corporations Act. 1951 was issued calling upon the appellant to repay the loan in question. This notice is dated 31.5.1997. When the amount remained unpaid, action under section 29(2) of the State Financial Corporations Act was initiated by the Financial Corporation.