TMI Blog1999 (5) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Civil Application No.253 of 1987, allowing the petition and directing the appellant-Corporation to pay the residue of the money received by it, with interest at the rate of 12% per annum to the petitioner, by sale of the factory, named R.K. Textiles , owned by the original petitioner. It was directed that the Corporation shall finalize the accounts within three months after adjusting ₹ 5,13,976.98 Ps. as found due on 15th January, 1982 and by taking into consideration the fact that the Corporation had realized ₹ 7,50,000/- by sale of the said factory. It was also directed that the appellant-Corporation shall pay directly to the G.I.D.C. ₹ 5,609/- towards its dues as on 15.1.1982. The statement on behalf of the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for recovery of unpaid instalments by the purchaser. Since the amount was not paid to the respondent-petitioner despite such statement, the petitioner filed the present petition, seeking direction on the appellant-Corporation to pay him the balance of the amount out of the money realized from the sale of the property in question. The appellant-Corporation contested the petition, contending that as the respondent-petitioner had failed to make payment of the loan, it had exercised its power under Section 29(1) of the said Act and took over the possession of the assets of the petitioner's unit. Thereafter, by issuing an advertisement, the unit was sold on 26.11.1981 to the highest offerer for a sum of ₹ 7,50,000/-. As no purchaser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to recover any amount from the Corporation, held that once the industrial concern is sold, in absence of any contract to the contrary, the Corporation holds the money received by it by sale of the industrial concern in trust and it is required to be applied in the manner provided by sub-section (4) of Section 29 of the Act. It was held that at the time of auction of the respondent-petitioner's property, he had no say in the matter and the Corporation, in exercise of its statutory right, had sold the property. It was held that by no stretch of imagination could it be said that if the purchaser makes default in paying instalments agreed to by him, the respondent-petitioner would be liable for the same or that the receipt of money fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under Section 29 of the said Act, in the event of default committed by the industrial concern in repayment of any loan or advance or any instalment thereof, there is a right in the Financial Corporation to take over the management or possession or both of the industrial concern as well as the right to transfer by way of lease or sale and realise the property pledged, mortgaged, hypothecated or assigned to the Financial Corporation. Any transfer of property made by the Corporation in exercise of these powers would vest in the transferee all rights in or to the property transferred as if the transfer were made by the owner of the property as provided by sub-section (2) of Section 29. Sub-section (4) of Section 29, around w... reads as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the said property. The property is realized and the amount, for which it is sold, would be the money, which is `received' by the Corporation within the meaning of that expression in sub-section (4) of Section 29. In fact, the appellant-Corporation itself had treated the amount of consideration of ₹ 7,50,000/-, for which the property was sold, as `money received' by it, because, after accepting one-third of that amount, it had treated the rest of it as if it was a loan advanced by the Corporation to the purchaser. Admittedly, on such loan amount, interest was payable by the purchaser to the Corporation. Thus, when the Corporation itself treated the remaining amount as if it was `money received' by it, on which, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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