Debangsu Basak, J. - (1.) Notices of demands and invocation of the provisions of State Financial Corporation Act, 1951 are under challenge in the present writ petition.
(2.) Learned senior Advocate appearing for the petitioners submits that, the first petitioner never defaulted in payment of the quarterly instalments. However, with the introduction of the Goods and Service Tax (GST), the first petitioner could not service the quarterly instalments in time. The petitioner seeks restructuring of the liability subject to the approval of the Court. He submits, on instructions, that, a sum of Rs.1 crore is due on account of interest payable for the quarterly instalments defaulted. He submits that, such interest would be paid by March, 2018. The principal amounts of the quarterly instalments will be suitably taken care of subsequently. He submits that, the petitioner is willing to deposit a sum of Rs.25 lakhs upfront. The balance may be paid by instalments as directed by the Court.
(3.) Learned senior Advocate appearing for the West Bengal Financial Corporation submits, on the basis of written instructions, that, the first petitioner had defaulted in making payments earlier. The account was restructured. The petitioner did not pay in terms of the restructured schedule. Subsequently, meetings were held. In one of such meetings, the petitioner had committed to clear off the liability by December 31, 2017. The petitioner has failed to pay in terms of such commitment also. The State Financial Corporation had taken a sympathetic view of the matter. However, finding that the petitioner is not paying although the petitioner has the capacity to do so, the State Financial Corporation was constrained to take steps as undertaken by it. He refers to a writing issued by the Karnataka Bank Limited with regard to the conduct of the credit facility of the petitioner with such bank.;