- (1.) The petitioner defaulted in making repayment of loans obtained from the West Bengal Financial Corporation. A demand notice was served upon the petitioner by the Corporation on 12th July, 1984. It appears from the said demand notice that the amounts due to the Corporation amounted to Rs. 10,84,000/- towards principal, Rs. 7,22,077.53 towards interest up to 30th June, 1984. A further sum of Rs. 43,123.26 was also claimed towards other dues. The total claim amounted to Rs. 18,49,211.79. The petitioner was called upon to make payment within 15 days from the date of the receipt of the notice. In the notice it was further stated that "in default of payment as stated above within 15 days from the date of receipt of this notice the provisions of the security deeds under reference and the State Financial Corporation Act, 1951 shall be enforced against you without further reference and you shall be held liable for all costs and consequence."
(2.) The case of the respondent is that the petitioner had executed deed of mortgage and other security documents in favour of the West Bengal Financial Corporation in connection with the loans which were given to the petitioner starting from 16th Aug., 1978.
(3.) On 1st Aug., 1984 a further notice was given by the West Bengal Financial Corporation to the petitioner in which it was alleged that the petitioner had not observed the terms and conditions of the various security documents executed by the petitioner for the purpose of obtaining loan. It was also alleged that in spite of the notice dt. 12th July, 1984 the petitioner had failed to make any payment. The Corporation gave notice to the petitioner that in exercise of its right under S.29(1) of the State Financial Corporation Act, a representative of the Corporation will take possession of the factory of the petitioner on 10th Aug., 1984.;