- (1.) LEAVE granted.
(2.) APPELLANT is a Corporation constituted under the State Financial corporations Act, 1951 (for short "the Act" ). Respondent No. 1 intended to set up a factory in the Industrial Area, Kokar in the town of Ranchi. It, on or about 5. 11. 1976, for the aforementioned purpose, sought for and was granted loan by the appellant for a sum of Rs. 3. 36 lakhs. An agreement was entered into by and between the parties, in terms whereof, the respondent no. 1 mortgaged the properties described in schedules `a', `b' and `c' thereof in favour of the appellant - Corporation, viz. , the lease hold right over a piece of land admeasuring 0. 56 acres at village Kokar. In terms of the said deed of mortgage, the plaintiff was required to liquidate the aforementioned amount of loan in fourteen instalments. The interest payable thereupon was 14. 25 per cent per annum payable every six months. Indisputably, the plaintiff refunded a sum of Rs. 1,32,000/- out of the total sum received from the appellant, viz. , Rs. 3,34,300/ -. The plaintiff installed machineries upon construction of buildings over the plot. The factory started operation from the month of November, 1978. However, admittedly the factory was closed in March, 1982 for one reason or the other.
(3.) INTER alia on the premise that the plaintiff failed and/ or neglected to pay amount of loan in the manner specified, a proceeding in terms of sections 29 and 30 of the Act was initiated by the appellant on or about 7. 12. 1981. Advertisements were issued for selling the factory on 16. 12. 1982 and 12. 01. 1983. However, no bid was received pursuant thereto and in furtherance thereof. A decision was taken to sell the said properties in favour of one Shri atma Lal Agrawal, respondent No. 2 herein. Plaintiff was not informed thereabout. According to the plaintiff, the said sale was conducted in a hush-hush manner. In disposing of the said property, the appellant did not keep in mind the interest of the plaintiff at all. The factory premises was handed over to the respondent No. 2 for which an inventory was prepared on 16. 02. 1983 which is to the following effect: " (A) PLANTS MACHINERY (1) 312 (3-Roller) Raymond Mill Plant for veeorope drive but without Motor and started complete with and Air-classifier. (2) Jaw crusher - without Motor (3) Blower 1 No. (4) Disintegrator without Motor 1 No. (5) Electrical installation with starter and switch. . . " ;