ANUPAM FOOD PRIVATE LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE petitionerappellant is aggrieved against the judgment dated 5th July, 2002 passed by the learned Single Judge, by which the writ petition W.P.(C)No.1777 of 2002 challenging the notice under Section 29 of the State Financial Corporation Act, 1951 dated 4th February, 2002 issued by BICICO, has been dismissed.

(3.) ACCORDING to the learned counsel for the appellant, the petitioner's industrial unit was established by incorporating a Company and getting it registered under the Indian Companies Act on 21st January, 1983. On 30th November, 1986 the petitioner Company applied for the financial assistance from the Bihar State Financial Corporation ( in short 'BSFC' ) for a loan of Rs.60.00 Lakh . However, the BSFC sanctioned term loan of Rs.53.40 Lakh only vide communication dated 12th January, 1987. The petitioner also applied for financial assistance from Bihar State Credit & Investment Corporation (in short ' BICICO' ). The BICICO sanctioned term loan of Rs.20.64 Lakh on 10th October, 1988 but disbursed the said amount of Rs.20.64 Lakh in two installments of Rs.16.51 Lakh and Rs.4.13 Lakh respectively on 25.5.1989 after eights months from the date of sanction. According to the petitioner, because of delay in disbursement of the loan amount, the petitionerunit suffered heavy loss and that it's losses are directly attributable to BICICO, because of inaction of the BICICO the petitionerunit became sick unit. The petitioner, therefore, applied to the Directorate of Industries, Government of Bihar for declaration that petitionercompany is a sick unit. On 7th June, 1999, the petitioner Company was declared a sick unit. The petitioner submitted a Scheme for rehabilitation and the Board of BICICO in it's meeting held on 16th March, 1998 approved the proposal of the petitioner and resolved that a rehabilitation term loan of Rs.41.00 Lakh be sanctioned which was to be provided by the State Bank of India, however, upon condition of induction of a suitable person with adequate financial background into the management of the company and bringing matching contribution for margin money. This Resolution was communicated to the petitioner vide letter of the Managing Director, BICICO dated 7th April, 1998. However, this Resolution was not given effect to and loan of Rs.41.00 Lakh was not disbursed to the petitioner by the SBI and, therefore, petitioner could not rehabilitate.