{"id":226162,"date":"2011-10-18T00:00:00","date_gmt":"2011-10-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-maha-laxmi-industries-vs-the-state-of-bihar-ors-on-18-october-2011"},"modified":"2017-02-08T21:57:05","modified_gmt":"2017-02-08T16:27:05","slug":"ms-maha-laxmi-industries-vs-the-state-of-bihar-ors-on-18-october-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-maha-laxmi-industries-vs-the-state-of-bihar-ors-on-18-october-2011","title":{"rendered":"M\/S Maha Laxmi Industries vs The State Of Bihar &amp; Ors on 18 October, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Patna High Court &#8211; Orders<\/div>\n<div class=\"doc_title\">M\/S Maha Laxmi Industries vs The State Of Bihar &amp; Ors on 18 October, 2011<\/div>\n<pre>                           IN THE HIGH COURT OF JUDICATURE AT PATNA\n                                   Civil Writ Jurisdiction Case No.1372 of 2006\n                   M\/S Maha Laxmi Industries, P.S. Ghora Sahan, District East Champaran,\n                   through its partner Mahendra Kumar Lokhotia, son of Shri Trilok Chand\n                   Lakhotia, resident of Mohalla Balbanawa, P.S. Ghorasahan, District East\n                   Champaran.\n                                                                            ... Petitioner\n                                           Versus\n                   1. The State Of Bihar\n                   2. Bihar State Financial Corporation through its Managing Director, Fraser\n                       Road, Patna\n                   3. Branch Manager, B.S.F.C. Branch, Motihari\n                   4. Shri Satya Narayan Jhunjhunwala, son of not known , resident of\n                       Henari Bazari, Motihari, P.S. Motihari, District Motihari\n                                                                           ... Respondents\n                                         -------------\n<\/pre>\n<p>02\/   18.10.2011                     Heard learned counsel for the petitioner and learned<\/p>\n<p>                      counsel for the respondents.\n<\/p>\n<p>                                     2. This writ petition has been filed by the petitioner<\/p>\n<p>                      challenging the sale of the petitioner-Industry effected vide memo no.<\/p>\n<p>                      442\/Z-1\/01-02 dated 06.10.2011 and handing over vide memo no. 678<\/p>\n<p>                      dated 22.12.2011 by respondent-Bihar State Financial Corporation<\/p>\n<p>                      (hereinafter referred to as `the Corporation&#8217; for the sake of brevity ) to<\/p>\n<p>                      private respondent no.4 and also challenging the entire proceeding<\/p>\n<p>                      initiated under section 32-G of the State Financial Corporation Act,<\/p>\n<p>                      1951 ((hereinafter referred to as `the Act&#8217; for the sake of brevity ) and<\/p>\n<p>                      for directing respondent-authorities to hand over the petitioner-unit<\/p>\n<p>                      back to its promoter partners for sale and realization of the true worth<\/p>\n<p>                      of its assets value and to extend the One Time Settlement Scheme<\/p>\n<p>                      brought in by respondent-authorities and for other ancillary reliefs.<\/p>\n<p>                                     3. It is not in dispute that the Corporation sanctioned<\/p>\n<p>                      a loan of Rs. 2.76 lacs on 29.03.1983         to   petitioner-unit , but,<br \/>\n<span class=\"hidden_text\">                         -2-<\/span><\/p>\n<p>according to the petitioner, only Rs.1.58 lacs was released and the<\/p>\n<p>amount was to be refunded in twelve half yearly instalments, which<\/p>\n<p>included the subsidy of Rs.23,100.00. It is also not in dispute that the<\/p>\n<p>default was committed in payment of the instalments and the<\/p>\n<p>respondents advertised petitioner-unit for sale and offer for purchase<\/p>\n<p>was given by respondent no. 4, whereafter the Corporation issued<\/p>\n<p>letter dated 06.10.2001 asking the petitioner to make the matching<\/p>\n<p>offer and to make arrangements for the difference of consideration<\/p>\n<p>price and balance outstanding within 21 days from the date of issue of<\/p>\n<p>the order. It is also claimed that in response to the said letter the<\/p>\n<p>petitioner sent letter dated 29.10.2001 to the authorities asking them to<\/p>\n<p>grant one year time to effect the sale of petitioner-unit for its real<\/p>\n<p>worth so that the entire due amount is liquidated.\n<\/p>\n<p>                  4. It is an admitted fact that the petitioner handed over<\/p>\n<p>its unit to respondent-authorities on 30.01.2002, whereafter on<\/p>\n<p>16.08.2002 a notice under section 32-G of the Act was issued to the<\/p>\n<p>petitioner asking it to show cause as to why the outstanding due<\/p>\n<p>amount of petitioner-unit be not realized from it. The petitioner sat<\/p>\n<p>tight over the matter and on 28.06.2005 sent a legal notice to the<\/p>\n<p>respondents for fresh auction and also praying for favourable order as<\/p>\n<p>per One Time Settlement Scheme. The respondents replied on<\/p>\n<p>23.09.2005 and the petitioner again sent a legal notice on 04.10.2005<\/p>\n<p>and when nothing was done, the instant writ petition has been filed by<\/p>\n<p>the petitioner.\n<\/p>\n<p>                  5. From the aforesaid facts and circumstances of the<br \/>\n<span class=\"hidden_text\">                       -3-<\/span><\/p>\n<p>case, it is quite apparent that the petitioner had been dilly dallying the<\/p>\n<p>matter for quite a long time as it had taken loan in the year 1983, but<\/p>\n<p>did not pay the instalments regularly, due to which the interest<\/p>\n<p>increased many fold. Respondent-authorities took steps in the year<\/p>\n<p>2001, whereafter the petitioner itself offered payment of the entire<\/p>\n<p>amount within one year, which was also not done and the matter<\/p>\n<p>remained pending till 2005 when fresh steps were taken by the<\/p>\n<p>Corporation.\n<\/p>\n<p>               6. Learned counsel for the petitioner stated that the<\/p>\n<p>market value of the property is more than Rs. 5 lacs but it is sought to<\/p>\n<p>be sold for an amount less than Rs. 3 lacs. He also relied upon two<\/p>\n<p>decisions of the Apex Court in case of Gajraj Jain vrs. State of Bihar<\/p>\n<p>&amp; Ors., reported in (2004) 7 SCC 151 as well as in case of Haryana<\/p>\n<p>Financial Corporation and another vrs. Jagdamba Oil Mills and<\/p>\n<p>another, reported in (2002) 3 S.C.C. 496. In the said decisions, the<\/p>\n<p>procedure of auction under section 32-G of the Act       has been dealt<\/p>\n<p>with, which, according to the petitioner, have been clearly violated by<\/p>\n<p>respondent-authorities.\n<\/p>\n<p>               7. However, from the facts and circumstances of the<\/p>\n<p>case, it is quite apparent that the matter had been delayed not due to<\/p>\n<p>any inaction of the authorities concerned but merely because of the<\/p>\n<p>delaying attitude of the petitioner who made irregular payments of the<\/p>\n<p>instalments and thereafter did not take any steps for decades together.<\/p>\n<p>Furthermore, when a notice under section 32-G of the Act in 2002<\/p>\n<p>was served upon the petitioner, it should have filed a show cause, but<br \/>\n<span class=\"hidden_text\">                              -4-<\/span><\/p>\n<p>       it did not file any show cause for several years. No fact with regard to<\/p>\n<p>       any action taken subsequent to the filing of this writ petition has been<\/p>\n<p>       mentioned by the petitioner.\n<\/p>\n<p>                      8. Considering the entire facts and circumstances of this<\/p>\n<p>       case and the materials on record, this Court does not find any reason to<\/p>\n<p>       interfere into the matter. Accordingly, this writ petition is dismissed.<\/p>\n<pre>MPS\/                               (S.N.Hussain, J.)\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Patna High Court &#8211; Orders M\/S Maha Laxmi Industries vs The State Of Bihar &amp; Ors on 18 October, 2011 IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.1372 of 2006 M\/S Maha Laxmi Industries, P.S. Ghora Sahan, District East Champaran, through its partner Mahendra Kumar Lokhotia, son of Shri Trilok [&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":[8,27],"tags":[],"class_list":["post-226162","post","type-post","status-publish","format-standard","hentry","category-high-court","category-patna-high-court-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Maha Laxmi Industries vs The State Of Bihar &amp; Ors on 18 October, 2011 - 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\/ms-maha-laxmi-industries-vs-the-state-of-bihar-ors-on-18-october-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Maha Laxmi Industries vs The State Of Bihar &amp; 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