High Court Patna High Court - Orders

M/S Maurya Jute Industries … vs The Bihar State Credit & Inves on 30 June, 2011

Patna High Court – Orders
M/S Maurya Jute Industries … vs The Bihar State Credit & Inves on 30 June, 2011
                    IN THE HIGH COURT OF JUDICATURE AT PATNA
                                      CWJC No.10230 of 2011
                                M/S Maurya Jute Industries Pvt.Ltd.
                                                  Versus
                   The Bihar State Credit & Investment Corporation Ltd. & Ors.
                                               -----------

For the petitioner : Mr. Gautam Kejriwal, Advocate.

For respondent nos.1 & 2 : Mr. Nirmal Kumar, Advocate.

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02/ 30.06.2011 Heard learned counsel for the petitioner and learned

counsel for the Bihar State Credit & Investment Corporation Ltd.

and its authority. No one appears on behalf of the State of Bihar

and its authorities.

2. This writ petition has been filed by the petitioner

challenging the demand notice issued by the Bihar State Credit &

Investment Corporation Ltd. (hereinafter referred to as ‘the

Corporation’ for the sake of brevity) and also challenging notice

published by the respondent-Corporation in Newspaper dated

10.06.2011 fixing 30.06.2011 as the date of auction sale of the

assets mortgaged by the petitioner and for other ancillary reliefs.

3. Learned counsel for the petitioner submits that

petitioner is a company incorporated under the Companies Act,

1956 dealing in manufacturing activity for production of jute yarn

and on his application a term loan of Rs.70.00 lacs was sanctioned,

out of which only Rs.45.00 lacs was paid to the petitioner and the

remaining amount is yet to be paid. Learned counsel for the

petitioner further submits that due to non payment of the said

amount, business of the petitioner could not take off and he was
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unable to refund the amount. Learned counsel for the petitioner also

avers that according to demand notice a total sum of Rs.1406.45

lacs was demanded, out of which Rs.1350.66 lacs was the interest.

He further contends that possession had already been taken by the

respondent-Corporation as far back as in the year 2002 and hence

the question would arise as to whether during the period of

possession of the Corporation, the interest can be validly levied.

4. On the other hand, learned counsel for the

Corporation submits that since 2002 several notices for one time

settlement has been repeatedly sent by the Corporation to the

petitioner, but the petitioner has not responded and has come before

this court only after the impugned notice has been published in the

newspaper. He further submits that whether the order of the

Certificate Officer of the Corporation dated 13.03.2002 or the

action taken by the Corporation under Section 29 of the State

Financial Corporation Act, 1951 in the year 2002 still remains

unaffected is the matter for which he has to get instruction from

their client for which he seeks some adjournment.

5. Considering the aforesaid facts and circumstances, it

prima facie appears that learned counsel for the petitioner has been

able to make out a case for consideration by this court in detail after

receipt of the counter affidavit which the respondents may file

expeditiously.

6. Learned counsel for the respondents-Corporation

submits that he will file a counter affidavit after seeking
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instructions within a week.

7. Put up this case under the heading ‘Admission’ at

10.30 P.M. within top five cases on 07th of July, 2011.

8. Till further orders, the respondents-Corporation and

its authority are restrained from effecting any sale of the assets of

the petitioner-company in the light of the impugned sale notice.

(S. N. Hussain, J.)

Sunil