Ruma Pal, J. - (1.) Leave granted.
(2.) The appellant had been sanctioned a sum of Rs. 70 lakhs by the Bihar State Credit and Investment Corporation Ltd. (hereinafter referred to as BICICO) in April 1992 for financing the construction of a hotel. According to the appellant, BICICO only disbursed a sum of Rs. 44.56 lakhs in instalments as a result of which the appellant could not complete the project without a huge cost overrun. From time to time up to 2001-2002, the appellant repaid about Rs. 14.23 lakh to BICICO. However, the outstanding amount, due from the appellant according to BICICO as on March 2002, was Rs. 191.3 lakhs including interest. Proceedings were therefore commenced by BICICO under Section 29 of the State Financial Corporations Act, 1951 for sale of the hotel which had been mortgaged by the appellant to BICICO by way of security against the loan.
(3.) The hotel was valued on 3rd July, 2001 by BICICO through its valuer. According to this valuation, the property was worth Rs. 2.16 crore. After this, a publication was made on 31st January, 2002 offering the hotel for sale on an "As is where is basis". Offers were required to be made by 28th February, 2002. The respondent No. 6 offered to purchase the hotel for Rs. 41 lakhs. The offer was rejected by BICICO because the bid was too low.;