PRABHAT TERPENES Vs. STATE

JUDGEMENT

(1.) PRABHAT Terpenes and Synthetic Private limited has filed this writ petition seeking quashing of the Jammu and kashmir State Industrial Development Corporation Llmited's order No. 22 dated 14-2-2008 whether by physical possession of the mortgaged properties of the petitioner-Company (excluding raw materials, finished and unfinished goods, (pledged to the Bank) had been ordered to be taken over the realization of the outstanding dues of the Jammu and Kashmir Industrial Development Corporation Limited besides Auction Notification No. IDC/db/99/co/152/149 dated 28th of June, 2006.

(2.) THE petitioner says that a Term Loan of Rs. 56. 75 lacs at 9. 5% interest rate over and above 3. 5% re-financed from IDBI, was obtained by it which was to be paid back in instalments after every six months. Referring to the tripartite agreement entered into between the petitioner, Jammu and Kashmir Financial Corporation and the state Industrial Development Corporation Limited and mortgage deed dated 26th of November, 1979, the petitioner says that liquidating major part of the loan amount from 1980 to September, 1986 an amount of Rs. 49. 84 lacs had been paid back to the State Industrial Development Corporation Limited against the term loan of Rs. 56. 75 lacs.

(3.) IT is stated that petitioner's Unit did not work, well because of the Governmental policies resulting in delayed repayment of the loan amount which was due to the State industrial Development Corporation (hereinafter to be referred as "sidco" ). The Unit was ultimately closed. The petitioner further says that it had paid a sum of Rs. 102. 00 lacs and no more amount was required to be paid by it to the SIDCO. The petitioner refers to one time settlement offer of SIDCO and its agreement for settlement for an amount of Rs. 17,56,924/- as against Rs. 69,18,946/- which was due in 1998.