- (1.) The petitioner M/s. Surprise Hotel (Private) Limited got sanctioned a loan from respondent No. 1 i.e. U. P. Financial Corporation (U. P. F. C.) of Rs. 44,80,000-00. Out of which Rs. 43,93,000-00 was disbursed to the petitioner firm. The petitioner also took a loan of Rs. 87.2 lakhs from respondent No. 2 i.e. Pradeshiya Industrial and Investment Corporation of U. P. Limited (PICUP). The hotel was started at some distance of Hardwar and could not pick up business according to the allegations of the petitioner and it ran into rough weather and ultimately it could not repay the loan as agreed. It is alleged that the business of the hotel proved to be in loss on account of terrorist activities and Uttarakhand agitation and mushroom growth of Dharamshalas in the Hardwar. The proprietor of the petitioner firm i.e. J. P. Dubey also expired on 28-12-1995 and it became more difficult for her wife etc. to run it. In brief, outstanding liability went on increasing and despite efforts made to negotiate privately to lease the hotel to M/s. Agra Valley Hotel Private Limited in December, 1994 and also to M/s. Moolchand Export Limited, the petitioner could not succeed in this arrangement. It appears that the Opposite party No. 1 advertised in Times of India on 8-2-1995 for inviting the offer for sale of hotel vide annexure No. 3. to the writ petition. Ultimately the UPFC issued a notice under Section 29 of the State Financial Corporation Act, 1954 regarding the sale of the hotel and also an advertisement was issued in vernacular Newspaper i.e. Amar Ujala dated 18-8-1995 vide annexure No. 8 to the writ petition. The grievance of the petitioner by way of filing the writ petition is as appears from the grounds and during the course of the argument of the learned counsel for the petitioner that the value of the hotel was not fixed correctly. The advertisement was issued for Rs. 1.47 crores and its assets value is not less than Rs. 9 crores. It is alleged that the hotel was sold for Rs. 1.85 crores on 15-7-1996 causing huge loss to the petitioner and has described the auction of the U.P.F.C. as unfair and unreasonable and prayed that the sale effected in favour of M/s. New Age Hotels and Resorts limited vide annexure No. CA-3 to the counter affidavit is liable to be quashed. The sale deed was executed and the possession was given to M/s. New Age Hotels and Resorts Limited.
(2.) The petitioner has filed the present writ petition claiming the following reliefs :"(i) issue a writ, order or direction in the nature of certiorari quashing the notice dated 20-9-1995 (Annexure No. 9) to this writ petition;(ii) issue a writ, order or direction in the nature of mandamus restraining the respondents and its employees from interfering with the functioning of the Hotel run by the petitioner at Jwalapur near Shankar Ashram, on Hardwar - Roorkee Road, Hardwar under the name and style "Surprise Hotel" during the pendency of this writ petition;(iii) issue any other writ, order or direction which this Hon'ble Court may deem just and proper;(iv) award the costs of this petition to the petitioner."
(3.) The case of the respondents as revealed from the counter affidavit is that the petitioner was given an opportunity to repay the loan and also was intimated the price of the hotel for which it is being soled and opportunity to pay that amount or to find a better prospective buyer but the petitioner failed to do so and ultimately the hotel was sold. In other words the case of the respondents is that before selling the hotel every conceivable opportunity was given so that the business should run. It appears from the counter affidavit filed by the respondents that on petitioner's request auction proceedings was postponed on 24-2-1995 and opportunity was given to the petitioner to liquidate the dues of more than Rs. one crore. The petitioner as per terms of the agreement could not liquidate the amount i.e. Rs. 1,48,31055.80 paise upto 15-2-1995. The Corporation got assessed the value of the hotel from Shri G. S. Birdie, Government Valuer vide Annexure No. CA-2 for Rs. 1.606 crores. The respondents also mentioned in the notice given in vernacular newspapers the value of the hotel Rs.1.47 crores. It is refuted that value of the hotel got assessed by the petitioner from Shri B. L. Tandon vide annexure No. 8 to the writ petition is totally wrong and exaggerated as the price of the land is exaggerated to the sky and valued the cost of the hotel to Rs. 9.16 crores. It is also pleaded that the Corporation received offer of Rs. 1.75 crores but ultimately M/s. New Age Hotels and Resorts Limited offered Rs. 1.85 crores and offered Rs. 1 crore cash down and balance Rs. 85 lakhs was to be paid in instalments i.e. in four half yearly instalments with a gestation period of six months bearing interest at commercial rate vide terms and conditions of sale (Annexure No. C-3 to the counter affidavit) It is alleged that information was sent to the petitioner that the petitioner could avail this opportunity by offering this amount but no positive response was received.We have heard the learned counsel for the parties at length. Shri Ajeet Kumar, learned counsel for the petitioner argued ad infinitum only on the one point that the respondent No. 1 could get a better price and being a trustee of the property has caused loss to the petitioner and act of the corporation is arbitrary and unreasonable. The petitioner's counsel also submitted that the petitioner has no money from all resources to make payment and could not avail the offer and even the petitioner was not ready to make any alternative proposal at this juncture.;