PRABHAT UDYOG Vs. BIHAR STATE FINANCIAL COPORATION

JUDGEMENT

(1.) This Letters Patent Appeal has been preferred against the judgment dated 8-1-2002 passed in the writ petition being C. W. J. C. No. 2041 of 2000 (R).

(2.) The petitioner took loan in 1975 from the respondents-Bihar State Financial Corporation (hereafter to as "the Corporation"). It became defaulter. A further loan for rehabilitation was given in 1984. The increasing dues of the Corporation were not paid by the petitioner. Some time in 1993, the Corporation floated a Scheme for one time settlement. The appellant applied under the said Scheme. The Corporation calculated the dues at Rs. 17.97 lacs together with interest at the rate of 16 per cent per annum chargeable on the remaining amount i.e. excluding the application amount. The petitioner filed a writ petition being C.W.J.C. No. 2368 of 1996 (R) challenging the said amount. The writ petition was disposed of on 9-1-1997 by remitting the matter back to the Corporation to consider the grievance of the petitioner and to take a decision and also reduce the amount under one time settlement by taking into consideration 31-3-1978 as the date of initial continuous default. The Corporation challenged the said decision in Letters Patent Appeal which was dismissed. Then the Special Leave Petition filed by the Corporation in the Supreme Court was also dismissed. The Corporation thereafter reconsidered the objection raised by the petitioner and reduced the amount from Rs. 17.97 lacs to Rs. 12,49,010.42 Paise. The petitioner made representation objecting to the said amount. Thereupon the amount was further reduced to Rs. 11,38,671/- some time in the month of December, 1998 to which the petitioner again raised objection. By letter dated 6-3-2000 (Annexure 12), the Corporation rejected the petitioner's objection. The details of calculation was sent. This letter was challenged by the petitioner in writ petition in petition in question being C.W.J.C. No. 2041 of 2000 (R). This Court dismissed the writ petition. It was held that the date of continuous default was 31-3-1978. Learned Single Judge observing that even assuming that the petitioner has some case on the question of calculation of interest, dismissed the writ petition on the ground that instead of depositing the finally settled amount, the appellant was raising frivolous objections in order to delay the payment of the dues. The learned Single Judge was of the view that the conduct of the petitioner was not bonafide as he did not deposit at least the amount which, according to him, was payable to the Corporation under one time settlement. This order of the learned Single Judge has been challenged in this Letters Patent Appeal.

(3.) Mrs. Anubha Rawat Choudhary, learned counsel appearing for the appellant, submitted that the said amount was wrong as :- (i) The date of initial continuous default has been taken as 31-3-1978 instead of 30-9-1977. (ii) Interest has been charged @ 18% against the stipulated rate of 16 per cent; and (iii) No relief under one time settlement scheme is given on Account No. II.