M.M.KUMAR,J - (1.) CHALLENGE in this petition filed under Article 226 of the Constitution is to the notification dated 10.11.2005 (P-9) and recovery certificate dated 12.6.2007 (P-8), which has been issued by exercising power in pursuance to the aforementioned notification.
(2.) BRIEF facts of the case are that the petitioner purchased a sick unit in an open auction on 9.10.2002 at a price of Rs. 12 lacs. In that regard an agreement dated 30.12.2002 (P-2), detailing mode of payments, instalments and other conditions agreed to between the parties was executed. A guarantee form was also got filled in from the petitioner (P-3). The petitioner deposited 25% of the auction money and the rest was to be paid in instalments as per terms of the agreement. The mode of payment is specified in sub-clause (i) of clause 4 of the agreement to sell and the same reads as under :- "4. The purchaser hereby covenants with the seller as follows :- i) The purchaser shall pay to the seller the balance amount of Rs. 9,00,000/- (Rs. Nine lacs only) in 12 quarterly instalments of Rs. 75,000/- each payable on 1st of March, 1st of June, 1st of September and 1st of December of each year,the 1st quarterly instalment will be paid on 01.03.03 and last instalment of principal and interest will be paid on 1st December, 2005 together with interest @ 15.5% p.a. quarterly rests at the discretion of the Corporation and will in case and so long as the said sum of any part thereof shall remain unpaid pay to the Corporation, interest on the said sum or any part thereof as shall be paid alongwith above instalments on the due dates mentioned above at the discretion of the Corporation. Further rebate of 1% p.a. shall be allowed to the regular purchaser borrowers in case he is regular in the repayment of the four consecutive quarterly installments provided however that the consecutive quarterly installments provided however that the interest rate can be revised till the loan account is adjusted by the Corporation the interest tax or any other liability related to interest on loan. However, penal interest @ 3% p.a. shall be charged over and above the rate of interest mentioned above if charged over and above the rate of interest mentioned above if instalments of principal and interest are not paid on the due date will be charged on the amount in default and for period in date will be charged on the amount in default and for period in default. Further penal interest @ 3% p.a. shall be charged on over due amount upto one year and in case if defaults persist beyond one year, penalty on entire default shall be imposed @ 4% p.a." It is conceded that the petitioner after depositing 25% amount has not deposited any amount, which has led to the issuance of recovery certificate as arrears of land revenue, dated 12.2.2007 (P-8). It is also pertinent to mention that the respondent Corporation has also incorporated and adopted the provisions of Sections 29 and 30 of the State Financial Corporations Act, 1951 (for brevity, "the Act"), as part of the agreement as is evident from a perusal of sub-clause (xi) of clause 4 of the agreement.
(3.) IT is undisputed that the Government in terms of Section 32-G of the Act, has delegated the authority vide notification dated 10.11.2005 (P-9) to the Managing Director of the Haryana Financial Corporation for the purposes of the said Section. In pursuance to the notification, the Managing Director has addressed a letter to the Collector of the area for recovery of the outstanding amount (75% of the amount). Both the aforementioned orders are subject matter of challenge.;