- (1.) THE Rajasthan Financial Corporation (for short 'rfc')granted term loan in the sum of rs. 1,55,000/- to Ram Niwas Gupta (for short 'rng')who established factory for manufacturing and processing Sodium Silicate at 246, Saloda Industrial Area, Gangapur City. Since RNG committed default in making payment of installment the RFC issued a legal notice under Section 29 of the State Financial corporations Act, 1951 and took possession of the unit on February 7, 1987. Land, building and machinery of the unit were put to open auction and the sale was finalised and possession of the entire unit was handed over to the appellant on february 28, 1989 after executing agreement on february 27, 1989 by RFC in favour of appellant. RNG filed writ petition seeking declaration of the said transfer as null and void. Learned single Judge vide order dated august 28, 1998 allowed the writ petition. Hence this appeal. . . . .
(2.) WE have heard learned counsel for the parties.
(3.) A look at the material on record demonstrates that writ petition was dismissed in default on May 16, 1995. RNG thereafter filed restoration application which was allowed by learned single Judge on November 15, 1996 in the presence of counsel for RNG and RFC. Since counsel for appellant was not present on that date, it was necessary to make aware either to appellant or his counsel about the restoration of the writ petition. Learned single Judge however did not choose to do so and decided writ petition setting aside the auction sale made by the RFC in favour of the appellant. Direction was also issued to take back the possession of the unit from the appellant.;