SYNTEX PACKINGS PVT. LTD Vs. M.P. FINANCIAL CORPORATION

JUDGEMENT

(1.) THE Writ Petition No. 112/2000, Writ Petition No. 128/2001 and Writ Petition No. 2404/2004 involve common question of law as to whether the sale of the vacant land & building i.e. Plot No. 97/C, Industrial Area Sirgitti, Bilaspur, pursuant to the sale notice dated 02.10.2000 and consequently handing over possession of the property in dispute and other actions of the respondent-Madhya Pradesh Financial Corporation is vitiated and contrary to the well established principles of auction sale. Further, whether the exercise of power under section 29 of the State Financial Corporation Act, 1951 (hereinafter referred to as 'the Act, 19510 was legal and proper. Thus, all the three writ petitions are being considered and decided together. WRIT PETITION NO. 112 OF 2000

(2.) THIS is a petition filed by M/s Syntex Packings Pvt. Ltd. and Praveen Kumar Patel wherein the petitioners (hereinafter referred to as "Syntex") have prayed for a writ in the nature of certiorari to quash the sale letter dated 25.11.2000 and further all letters/documents relating to handing over possession of the Industrial Unit i.e. Plot No. 97/C, Industrial Area, Sirgitti, Bilaspur to respondent No. 4. Further, the respondent Madhya Pradesh Financial Corporation (hereinafter referred to as "the MPFC) he directed to accept amount of Rs.12.95 lakhs against the loan amount and return back the possession of the above stated Industrial Unit with land & building and plant & machinery to Syntex. The Madhya Pradesh Audyogik Vikas Nigam Limited. Raipur, granted lease of the land-in-dispute admeasuring 42,542 sq.ft. The said lease was executed on 25.05.1985 for the same site admeasuring 4313.5 sq.ft. The MPFC sanctioned a term loan of Rs.30 lakhs which was disbursed to the petitioners in the year 1985-86 wherein a subsidy of Rs.4.82 lakhs was granted. On 27.01.1987, the industrial unit became operational. The Syntex failed to pay loan amount in accordance with terms of repayment. Therefore, the first reschedulement for repayment was made on 16.03.1991. The Syntex failed to make payment again even on reschedulement. On 20.12.1994, Rs.6.38 lakhs was waived off being the second reschedulement of payment. According to the Syntex, a total sum of Rs.41.44 lakhs was repaid. The Syntex applied for reschedulement of the loan amount as the Unit became sick. The Syntex was required to pay principal amount of Rs.22.17 lakhs in 10 half yearly installments from 01.10.1995 to 01.04.2000. The interest was charged at the rate of 15.5% per annum on the rescheduled loan. of Rs.22.17 lakhs with penal interest at the rate of 4% per annum. The Syntex paid a sum of Rs.1 lack on 01.01.1996. The Syntex further made a request for one time settlement of dues on 27.12.1995. Rs.1.25 lakhs was paid on 22.06.1996. Thereafter, on 29.07.1996, a sum of Rs.2.5 lakhs was paid. On 23.09.1997 (Annexure P/6) the Syntex requested the MPFC not to take over the Unit and allow the Syntex time till 31st November, 1997 to make the entire payment of the balance amount. Thereafter, no payment was made.

(3.) ACCORDING to the learned counsel for the Legend, the possession of the land & building was handed over to the Legend on receipt of consideration, on 29.11.2000. The plant & machinery was removed by the MPFC and was kept in safe custody. Being aggrieved, the Syntex have filed this petition seeking the aforementioned reliefs, on 12.12.2000. This is a petition filed by Shri Salabh Chaturvedi (hereinafter referred to as 'Salabh') who claims to be a small scale industrialist engaged in the business of manufacturing of ointments. ACCORDING to Salabh, the entire Unit was to be put on sale on "AS IS WHERE IS BASIS". Therefore he could not make his offer for purchase of only the vacant land & building. The land & building was sold separately which was a clear departure from the terms of the advertisement. Had it been in the advertisement, Salabh would have made offer for the vacant land & building. Thus, the sale is contrary to the advertisement. It was further stated that the petitioner contacted the office of the Branch Manager, MPFC with a query for purchase of land & building. He was told that the property was offered for sale on "AS IS WHERE IS BASIS". There could be no change in terms and conditions. Under no circumstances, vacant land & building can be sold. Salabh had sent a letter dated 15.11.2000 (Annexure P/3) expressing his intention to purchase land & building. Thus, the petitioner has filed this petition seeking a writ in the nature of certiorari to quash the sale order dated 25.11.2000 and further restraining the Legend from doing any activity including business in the Industrial Area at the plot No. 97/C, Sirgitti. It was further prayed that the property in dispute be re-advertised for fresh sale so that Salabh can get opportunity to participate in the same. Thus, this petition was filed on 24.01.2001. The petitioner filed a defective affidavit for which Salabh was permitted to file proper affidavit by order dated 07.05.2008.