9911796707
TMI Blog1998 (10) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Corpn. ('the OSFC') sanctioned a loan of Rs. 11 lakhs and 8 thousand, the Industrial Promotion & Investment Corpn. ('the IPCOL') sanctioned a loan of Rs. 3 lakhs and the petitioner-bank sanctioned credit limit up to Rs. 92 lakhs to the opposite party-company for setting up its factory at Rairangpur in the district of Mayurbhanj against valuable securities both movables and immovables. By a common agreement dated 11-7-1979, it was agreed by all the above parties that the properties so mortgaged to OSFC shall be first charge and for the loan advanced by the petitioner-bank it shall be the second charge, to be enforced by the petitioner-bank. 3. When the company defaulted in repaying the loan the latter seized the unit on 5-9-1987, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. Further, it asserted that the sale notice dated 11-9-1987, was intimated to the Regional Director, CLB under Annexure A and Annexure B. It is its further case that the first sale in favour of Shri Arun Kumar Nanda was cancelled since the buyer only purchased the assets of the company whereas it could not discharge the liabilities of the company for which the creditors of the company moved the Corporation to cancel the sale which was done. However, on the second occasion on 14-3-1995, before the sale the Disposal-cum-Advisory Committee of the Corporation held its meeting on 14-3-1995, in which the officers of the bank were present. On their asking, ten days' time was granted to them to fetch the buyer but they failed to do so, and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lable. These conditions having not been adhered to, the sale is liable to be set aside.
8. In the result, the petition is allowed and the sale is set aside. The OSFC shall advertise the unit for fresh sale giving wide publicity as required in the case of Mahesh Chandra and also comply with other requirements in that case. Besides, we direct that minimum 15 days notice should be given to the petitioner-bank as well as opposite party No. 5, the company, to enable it to join the auction and if necessary to allow them to fetch their own buyers for participation in the auction. Opportunity to inspect the unit be also given to the petitioner-bank and opposite party No. 5. No costs.
Chatterji, J. - I agree. X X X X Extracts X X X X X X X X Extracts X X X X
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