High Court Karnataka High Court

M/S Nandi Agro Pvt Ltd vs Karnataka State Industrial … on 10 December, 2008

Karnataka High Court
M/S Nandi Agro Pvt Ltd vs Karnataka State Industrial … on 10 December, 2008
Author: Ram Mohan Reddy
IH THE HIGH COURT OF' KARHATAKA, 

DATED TI-its mm 13" DAY or nnczmsaa," .

BEFORE

THE uownm MR. wanes    'V

wnrr PETITION no. 182.%'3Ifi{ )0$(  

BETWEEN

M/S NANDI AGRO PRIVATE LEM}'i?E{)--  AA * 
PLOT NO 15, TAMAKA INI'.}.IAAREA   
rm 4 BYE PASS,V.KOLAR"E$63f1(3*}__':_ '_ 'V * = "
REP BY yrs MANAQINCE D!R}E:CT.ORj_'~- 
BR. BALASUF3R£§=MANYANi:.  ;   %
AGED ABGUT' »;34"?¥E;ARs.jT'j---.V}    , "

S/O LATE. R'ANC»A1A:iazJL.é£:ETrY
R/O Donosmmw, _KoLAR=ss3 101 KOLAR DIST.
 " n  ..  PETITIONER

 '  Suck}; :§s.§Js1~1EI«:LA, ADV )

 1  K}§RI§2$TAI{A STATE INDUSTREAL

_ T INVESTMENT AND
' DEVELOPMENT CORPORATION L'I'D.,

V V _.*REP BY ITS MANAGING DIRECTOR

KHANIJA BHAVAN, 49, 4T1-§ FLOOR
EAST WING RACE COURSE ROAD
BANGALORE 1

2 THE ASSISTANT GENERAL MANAGER
K.S.I.I.B.C. 1;m.,
KHANIJABHAVAN 49, "K

1
J



4TH FLOOR EAST WING
RACE COURSE ROAD
BANGALORE 1

3 THE MANAGER

K.S.I.l.D.C. LTD.,   
KHANIJABHAVAN 49, : '
4TH FLOOR EAST WING

RACE COURSE ROAD _
BANGALORE 1 ' 

4 THE STATE OF KARNAT.A__K'A_ 
REP BY yrs SECRETARY * g 
DEPARTMENT OF I.RDus'::jR.Y"-V--_'j A 
AND COMMERCE _'   ° 
VIDHANA AS0UDIfiIA--V. O  '
BANGALQRE1  '

V  RESPONDENTS

(By sx?i.; RR RAMF);3§i’,vR’s..§¢=;ANJUNATH 8!-
H C. $HIVARAMU.–, ADV FOR R1 )

‘ THIS WR1%bPET1i’ION1s FILED UNDER ARTECLES 226

AI\i7§_I)”‘1~22O’V7 OP’ TH§:3″—-GC”NS’TITUTION OF INDIA PRAYING TO
“QUASH : ANflEX.A. DT. 2.12.2006 ISSUED BY THE

V MA1’$At}E’R, i€SiIDC LTD., BANGALORE / THE IMPUGNED
NOTICEv[QRDER’, AND ANNEXAI DT. 20.9.2006 PASSED

BY THE GEN ERAL MANAGER (Z-1 1) R2 HEREIN.

R?1*}a::S% RE’rmON, COMING ON FOR HEARING,

TEQS BAY THE COURT MAOE: THE FOLLOWING:

0 R D E R
The petitioner, a Private Limited Company,
aggrieved by the notice dated 2.12.2006 A11ncxnre–A of the

Karnataka State Industrial Inveswent Development

5:

Corporation, for short: KSIIDC, as well as

20.9.2006 of the 23′-‘1 respondent,

presented this petition to quash];

letter and for a mandamus dizeoti_n:;g_V_the 1’es§}ond~en’ts’*~.Ato*–VV

consider the OTS offer

and final settlement of ones.

2. It is the vasseiftien that though it
is a deflauitzei’ iz1__ af moneys, nevertheless, it has

paid an additional Rs.8O lakhs as

against ‘R31 12.s9i’1;§1:ht§’ ms Scheme.

1/ 3;””AooIdingiV’toiithe petitioner, there was a deficit of

which the petitioner could not pay on

aeeount~ liaving turned sick. Learned counsel for the

petiticiraei’ further submits that the petitioner is ready and

to pay Rs. 10 lakhs on or before 12.12.2008 and

V’ that the petitioner would abide by terms and conditions that

the respondent would impose, if the 07% proposal is

considered afiesh. 5
M\
V’

4. Per contra, Sri P S Manjunath, learned c0i11n:3el~1’or

the KSIIDC submits that Rs.112.39 lakhs as__setloi1t.i’ninT

letter dated 2.12.2006 Annexule-JAmis ” it

considerafion of the petitioner’sl’.__ afgpfieationlforl iof

€)’I’S benefit. In other words, aoeoiiiing

counsel, if the petitioner had lakhs on
12.12.2006, petitionerfi e§pp;i¢”a:=ig1;’ would have been
considered uncle; the oTs,::sc1n§;ja{:L ti’:egla1z;aiiab1e. Failure to

pay ‘t_l1e__ -Rs.112.39 lakhs, which was
actually’ short s, the petitioner having

‘ R580 .laldis’,’llno action is permissible over the relief

. ”

~ court in exercise of its extraoxdinary

under Art. 226 of the Constitution of India

l.”ll.A’dvoe§.–‘not nonnally interfere in the matter of dues payable

the defaulters to the State Financial Corporation, since

3/,:

being an instrumental of the State which deals with /’

‘/_/ .

public moneysi its approach towards its functions must

M

be public oriented. It is needless to state that the State

Financial Corporation can function effectively only_’iiflV’tI5_ieyi

are able to carry out regular realisation of the

due and therefore, intervention in the irnatter of .repay_me’1’its I

beyond the schedule time fran1e,i’«byi*-_d.efatil’teirs,.

disturb the financial El1’I’aI1gf31’I1CI*lvt:éV’€3’i’ the” Co’rpeofatiionl.”‘

6. In this View of the matter,’ hxavinhg i-revgpardfi to the
fact that the petitioner i”hzas_’diepo_siVted_Vp’i%s;8pD lakhs and is
willing to deposit .further.tsunr_n:= oi it is hoped
that the application

for grantvlof ibeneiitt Scheme.

.. petition” accordingly disposed off.

Sd/-3
Judge