- (1.) The present petition has been filed challenging the order dated 15.01.2004 as also the order dated 31.03.2004 both passed by the Rajasthan Financial Corporation (hereinafter 'RFC') whereunder following the cancellation of the undisbursed loan amount of Rs.28.12 lac out of sanctioned loan amount of Rs.111.45 lac, the petitioner-firm was informed that in view of its failure to deposit the entire loan outstanding as conveyed to it vide legal notice under Section 30 of the State Financial Corporation Act, 1951 on 28.01.2004, the respondent-RFC was invoking its power under Section 29 of the State Financial Corporation Act, 1951 (hereinafter 'the Act of 1951) to take over the possession of the assets of the petitioner-firm mortgaged with the respondent-RFC.
(2.) On the matter coming up before this Court on 15.04.2004, this Court while issuing notice to the respondent-RFC was pleased to direct that status quo be maintained with regard to the subject matter of the petition.
(3.) On notice being received, the respondent-RFC has filed a reply inter alia stating that the undisbursed loan amount of Rs.28.12 lac out of sanctioned loan amount of Rs.111.45 lac was cancelled as the petitioner-firm was unable to comply with the conditions of the disbursement in failing to create the assets and furnish a utilization certificate in respect of amount earlier disbursed. It has been further submitted that in view of the petitioner-firm defaulting in its obligation of the term loan agreement to protect the monies of RFC which are public monies, the entire loan amount was recalled vide order dated 28.01.2004 under Section 30 of the Act of 1951 and notice under Section 29 of the Act was issued on 31.07.2004 to the petitioner-firm on its failure to deposit the whole of the loan amount which stood recalled under law. It has been stated that the petitioner-firm was a defaulter in terms of its obligations under the term loan agreement and it was thus the statutory obligation of the RFC and its right to safeguard public monies to recover the amounts advanced with interest from the sale of the assets of the petitioner-firm mortgaged with the respondent-RFC.;