MADAN KANWAR Vs. RAJASTHAN FINANCIAL CORPORATION

JUDGEMENT

(1.) BY the instant writ petition under Article 226 of the Constitution of india, the petitioners seek quashing of sale certificate and sale deed dated 31-12-2007 annex. 4 and 5 in favour of M/s. Jai Vijay Industries.

(2.) THE facts and circumstances giving rise to the instant writ petition are that the petitioners were granted the loan by the respondent-Rajasthan financial Corporation (for short 'the RFC' hereinafter) and as on 1-4-2002 a sum of Rs. 37,32,451/-was outstanding. A loan agreement was also executed and the property was pledged by way of mortgage in favour of respondent -RFC. As per the terms and conditions of the loan agreement, the petitioners were to repay the loan amount in instalments, however, they failed to repay the loan amount and therefore, the respondent RFC initiated proceeding under section 29 of the State Financial corporations Act, 1951 (for short 'the Act' hereinafter) and took over the possession of the assets which were mortgaged as a security against the said loan. The possession of the assets of the petitioners was taken over by the respondent-RFC and part of the property/assets has been sold i. e. the agriculture land bearing Khasra No. 634/1, 635/1 and 636/1 to Shri Ghanshyam Rathi on 21 -8-20o6. The petitioners earlier filed a writ petition before this Court being SBCW No. 926/2005 which came to be disposed of by order dated 20th November, 2007. In the earlier writ petition, this Court noticed that admittedly, the possession of the assets of the petitioner unit is with the respondent-RFC and they have even sold part of the assets in the form of agricultural land to Sh. Ghanshyam Rathi on 21-8-2006 and this court disposed of the writ petition in the following terms :-

(3.) ACCORDING to the petitioner even after the order of this Court dated 20-11-2007. the respondent-RFC proceeded to confirm the sale in favour of private respondent in respect of the assets/security by sale deed dated 31-12-2007 Annex. 4 and 5. Hence this writ petition.