SHREE ANAND LIFE SCIENCES LTD. Vs. KARNATAKA STATE FINANCIAL CORPORATION

JUDGEMENT

(1.) PETITIONER is a company engaged in the manufacturing of pharma formulations (injectables).

(2.) PETITIONER was the highest bidder of land and building as well as plant and machinery in Plot No. 62/B, Sy. No. 536, KIADB, Honaga Industrial Area, Belgaum, (hereinafter referred to as "mortgaged property").

(3.) IT is the case of the petitioner that first respondent - KSFC had invited offers through a public advertisement for the sale of certain properties of its defaulters, so as to recover outstanding dues to KSFC. One of the said properties is the mortgaged property belonging to the third respondent - industry. The third respondent is a unit financed by KSFC, Belgaum. The unit had a term loan from KSFC but on account of the non -repayment of the loan amount with interest, KSFC initiated action under Section 29 of the State Financial Corporation Act, 1951 (hereinafter, referred to as "the SFC Act"), to take over the assets of the industry. It appears that KSFC, Belgaum had called for tenders from persons for the sale of the mortgaged property on four occasions. It had also provided opportunity to the third respondent to repay the outstanding dues. It is also stated that the third respondent failed to comply with the terms and conditions of the One Time Settlement Scheme (hereinafter, referred to as the "OTS Scheme") applicable to it. Ultimately, the mortgaged property was again brought to sale through a notification published in "Vijaya Karnataka, Kannada Daily News Paper" on 29/07/2007 (Annexure "A").