Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2012 (10) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 295 - SC - Indian LawsOff-set price of property was not valued before the conduct of auction - Offer afresh the benefit of One-Time Settlement Scheme (OTS) - No opportunity for repayment of loan after auction as per Court's direction - non compliance of State Financial Corporation Act (SFC) - Held that:- The procedure laid down under Section 29 of SFC Act has been followed by the Corporations. The independent valuer submitted his report on 17.09.2010 and the off-set price of the unit was fixed after getting it valued by an independent valuer. It was based upon the valuation report that the off-set price of the unit was fixed at ₹ 1,77,45,000/- on 17.09.2010. Sale notice was published in the News Papers on 18.09.2010 and the auction was conducted on 29.09.2010. Thus the High Court has committed an error in holding that off-set price of property was not valued before the conduct of auction and that there was no due publication of auction. Sale notice, it is seen, was published in the "Samaj" a vernacular paper and also in the "New India Express" a widely circulated English newspaper on 18.09.2010 and the Corporation had received nine offers and after protracting negotiations with all the bidders, the offer of the appellant was accepted being the highest. The Corporation before putting the appellant in possession again issued a notice dated 21.9.2010 to 1st respondent enquiring whether he would match the offer. 1st Respondent did not avail of that opportunity as well. It is under such circumstances that sale letter dated 1.10.2010 was issued to the appellant with a copy to all the Directors/Promoters/Guarantors of 1st respondent company. The appellant paid the balance consideration of ₹ 5,65,20,000 on 11.10.2010 and the Sale Memo was extended on that date and the property was also delivered. Thus no illegality in the procedure adopted by the Corporation, since 1st respondent had failed to comply with the directions issued by the co-ordinate Bench of the Orissa High Court which gave liberty to the Corporations to proceed in accordance with Section 29 of SFC Act - Section 29 of the State Financial Corporation Act, 1951 - Rights of Financial Corporation in case of default - Respondent-hotel failed to repay loan to Orissa State Financial Corporation (OSFC) repeatedly according to order of High Court - On writ, High Court directed respondent to deposit stipulated amount and on its failure gave liberty to OSFC to take action under Act - Division Bench of High Court had overlooked vital facts as well as binding judgment of a coordinate Bench in writ petition and had wrongly reopened a lis and issued wrong and illegal directions, decision of Division Bench was to be set aside
|