Ajay Rastogi, J. - (1.) Instant petition is directed against auction proceedings initiated by respondent Rajasthan Financial Corporation ("Corporation") in exercise of powers Under section 29/30 of State Financial Corporation Act, 1951 ("SFC Act") and seeking further direction for restoration of possession of industrial Unit and also praying that account of petitioner may be settled under one time settlement scheme and excess amount lying surplus out of sale proceeds upon disposal of the unit be refunded to him along with interest.
(2.) Brief facts, relevant for adjudication of controversy raised herein, are that a loan of Rs.4.70 lacs was sanctioned, in favour of M/s Lata Iron & Steel Works, Alwar on 27/06/1985, for which documents were executed on 04/09/85-out of which the petitioner availed of loan to the tune of Rs.3,59,300/- upto 10/09/87. The Unit remained closed since Mar.'88 and electricity was also disconnected from Jan.'89. However, petitioner did not make regular repayment and started making defaults in payment of principal loan and interest amount since 01/04/87, for which various reminders (Ann.R/3 to R/7 annexed to additional affidavit dt. 21/05/09) were sent to pay over dues towards principal & interest; and through registered letter dt.29/07/89 (Ann.R.8), he was advised to clear over dues of Rs.2.34 lacs within fifteen days, failing which legal action Under section 29 of SFC Act would be initiated. Since petitioner failed to deposit over dues despite persistent demands (supra), legal notice Under section 30 of FC Act was issued on 15/09/89 (Ann.R/9) demanding over-dues of Rs.2,68,729/- in pursuance whereof, petitioner vide letters dt. 21/09/89 (Ann.R/10)& 01/03/90 informed that the Unit is lying closed on account of pollution problems and prayed for rebate of 10% and waiving penal interest since March, 1988.
(3.) However, Rs.93,057/- were deposited by petitioner on 20/03/90. Vide letter dt.17/05/90 (Ann.R/11), he was called for discussion but did not turn up; hence again a registered notice dt.11/12/90 (Ann.R/12) was issued to clear over-dues of Rs.3,63,712 within fifteen days, otherwise action Under section 29 of SFC Act would be initiated. After reminders dt.16/01/91 & 12/06/91 (Ann.R/13 & R/14) and dt.10/10/91 (Ann.R/15) advising the petitioner to come forward with concrete proposal within 15 days, he showed his inclination to settle account provided Corporation waives penal interest; and two cheuqes dt.23/11/91 & 30/11/91 each of Rs.50,000/- were sent vide letter (Ann.R/16) but cheques were dishonoured so he was advised to deposit Rs.One lac vide letter dt.18/12/91 (Ann.R/17). Again no efforts were made to clear over-dues, hence legal notice was served Under section 30 of SFC Act on 27/02/92 (Ann.R/19) followed by registered post legal notice dt.06/09/93 (Ann. R/24) Under section 30 of SFC Act, specifying over-dues of Rs.3,07,247/- as on 01/07/93. Since overdues were not fully cleared, legal notice Under section 30 of SFC Act (Ann.R/27) was issued on 10/01/95 through registered post stating over dues of Rs.2.73 lacs as on 01/01/95 and followed by another legal notice (Ann.R/25) issued on 21/08/95, which constrained the Corporation to take decision of taking possession of fixed assets of the unit Under section 29 of SFC Act as conveyed vide letter dt.24/01/96 (Ann.R/29).;