{"id":212640,"date":"1996-04-18T00:00:00","date_gmt":"1996-04-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/orissa-state-financial-vs-hotel-jogendra-on-18-april-1996"},"modified":"2017-06-02T15:00:30","modified_gmt":"2017-06-02T09:30:30","slug":"orissa-state-financial-vs-hotel-jogendra-on-18-april-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/orissa-state-financial-vs-hotel-jogendra-on-18-april-1996","title":{"rendered":"Orissa State Financial &#8230; vs Hotel Jogendra on 18 April, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Orissa State Financial &#8230; vs Hotel Jogendra on 18 April, 1996<\/div>\n<div class=\"doc_bench\">Bench: K. Ramaswamy, G.B. Pattanaik<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  7740 of 1996\n\nPETITIONER:\nORISSA STATE FINANCIAL CORPORATION AND ANR.\n\nRESPONDENT:\nHOTEL JOGENDRA\n\nDATE OF JUDGMENT: 18\/04\/1996\n\nBENCH:\nK. RAMASWAMY &amp; G.B. PATTANAIK\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>1996 SUPP. (1) SCR 31<\/p>\n<p>The following Order of the Court was delivered..\n<\/p>\n<p>Leave granted.\n<\/p>\n<p>We have heard learned counsel on both sides.\n<\/p>\n<p>This appeal by special leave arises from the order of the Division Bench of<br \/>\nthe High Court of Orissa dated March 5, 1990 made in OJ.C. No. 500\/90.<br \/>\nAdmittedly, the respondent had taken a loan of a principal sum of Rs. 14,68<br \/>\nlakhs for construction of the hotel which was payable in 18 yearly<br \/>\ninstallments between July 10, 1984 and January 10. 1993. The respondent<br \/>\ncommitted default in payment of the loan as contracted Pursuant to the<br \/>\nrequest, a rephasement was done in November 1989 directing them to pay the<br \/>\namount in 9 half yearly installments starting from January 1993 to January<br \/>\n1997 with interest on arrear defaulted amounting to Rs. 10.64 lakhs which<br \/>\nwas to be paid according to the schedule mentioned below :\n<\/p>\n<pre>March 1989                        Rs. 1.30 lakhs\n\nMarch 1990                        Rs. 2.00 lakhs\n\nMarch 1991                        Rs. 2.84 lakhs\n\nMarch 1992                        Rs. 3.00 lakhs\n\nMarch 1993                        Rs. 1.50 lakhs\n\n<\/pre>\n<p>In addition, current interest was also to be paid with half yearly<br \/>\ninterests, Since the respondent &#8211; Hotel did not comply with the conditions,<br \/>\nnotice was given to it under Section 30 of the State Financial Corporations<br \/>\nAct, 1951 on February 1, 1990. Calling that notice in question, the<br \/>\nrespondent filed the above writ petition in the High Court. The High Court<br \/>\nhas directed the respondent to calculate the entire loan amount with<br \/>\ninterest including the additional loan sanctioned to treat he said amount<br \/>\nas principal for the purpose of rephasement of the same for repayment with<br \/>\ninterest<\/p>\n<p>It would appear that subsequently action was taken by the appellant, but<br \/>\nthe respondent seems to have not complied with the directions. Accordingly,<br \/>\nnotice was issued under Section 29. The respondent instead of complying<br \/>\nwith the same, approached the High Court by Misc. Case No. 1677\/90 which<br \/>\nwas disposed of by the High Court on April 9,1991 directing the respondent<br \/>\nto be personally present with the appellants on April 13, 1991 for<br \/>\nconsideration of the rephasement of the proposal as ordered in the impugned<br \/>\njudgment, It would appear that the respondent again did not appear before<br \/>\nthe authorities on April 13, 1991. The first appellant was, therefore, free<br \/>\nto exercise its statutory powers under section 29 in terms of the order<br \/>\npassed by High Court as order in the Misc. Case on April 13, 1991<br \/>\nrequesting seven days&#8217; time for submitting the proposal he sent a letter on<br \/>\nthe last date. Even thereafter, the respondent did not submit any proposal<br \/>\nto rephase the amount payable as per the provisions contained in Section 29<br \/>\nof the Act.\n<\/p>\n<p>Therefore, the Corporation again issued -a letter oil May, 8, 1991 stating<br \/>\nthat since that respondent had not furnished the rephasement proposal as<br \/>\nper the orders of the High Court, the appellant was free to take action as<br \/>\nper law. Calling that order in question again, the respondent had filed OJC<br \/>\nNo. 2747 of 1991 seeking further directions to rephase the loan. The High<br \/>\nCourt by interim order dated June 5, 1991 directed the appellant not to<br \/>\ntake any coersive action against the respondent, but ultimately the writ<br \/>\npetition came to be dismissed on January 25, 1994 with the following<br \/>\nholding :\n<\/p>\n<p>&#8220;the present dues of the Corporation is around Rs. 32, 24, 753.00. From the<br \/>\nfacts, it appears that the petitioner has become a per-sistent defaulter<br \/>\nand the Corporation is only taking steps available to it under the act to<br \/>\nrecover the loan. On facts, we do not consider it to be a fit case for our<br \/>\ninterference. The writ petiton hence is dismissed.&#8221;\n<\/p>\n<p>Thereafter, the appellants has issued notice on February 17, 1994 calling<br \/>\nupon the respondent to pay the entire amount due as on January 31, 1994<br \/>\namount to Rs. 35, 32, 058,43 by February 28, 1994. Instead of making<br \/>\npayment, the respondent again went to the Civil Court and filed Title Suit<br \/>\nNo. 88\/94 in the Court of Civil Judge, Senior division, Cuttack and<br \/>\nobtained status quo order in Misc. Case No. 115\/94 on 28.2.1994.\n<\/p>\n<p>It would, thus, be seen that the respondent is only interested to delay the<br \/>\nrepayment of the dues and has abused the process of the court taking<br \/>\nindulgence of the court&#8217;s direction. Under these circumstances., we find<br \/>\nthat no indulgence would be shown to such recalcitrant defaulter in<br \/>\nrepayment of the loan. Public money is meant to be recycled to all the<br \/>\nneedy entrepreneurs. The dilatory tactics defeat the public policy and the<br \/>\ncourt process becomes an instrument of abuse. Court would protect only<br \/>\nhonest and sincere litigants.\n<\/p>\n<p>The appeal is accordingly allowed with exemplary costs of Rs. 10,000, The<br \/>\nCorporation is at liberty to take action against the respondent as required<br \/>\nunder Section 29 of the Act, irrespective of the orders passed by any<br \/>\nCourt.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Orissa State Financial &#8230; vs Hotel Jogendra on 18 April, 1996 Bench: K. Ramaswamy, G.B. Pattanaik CASE NO.: Appeal (civil) 7740 of 1996 PETITIONER: ORISSA STATE FINANCIAL CORPORATION AND ANR. RESPONDENT: HOTEL JOGENDRA DATE OF JUDGMENT: 18\/04\/1996 BENCH: K. RAMASWAMY &amp; G.B. PATTANAIK JUDGMENT: JUDGMENT 1996 SUPP. (1) SCR 31 The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-212640","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Orissa State Financial ... vs Hotel Jogendra on 18 April, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/orissa-state-financial-vs-hotel-jogendra-on-18-april-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Orissa State Financial ... vs Hotel Jogendra on 18 April, 1996 - Free Judgements of Supreme Court &amp; 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