MALLADI DRUGS AND PHARMACEUTICALS LIMITED Vs. TUBER PHURMA CHEMICALS LIMITED

JUDGEMENT

(1.) By a deed of mortgage dated 30-3-1977 for Rs. 28.80 lakhs, deeds of modification dated 31-3-1978 and 3-3-1979, deed of agreement dated 18-2-1987 and deed of modification dated 28-1-1987 for Rs. 38,80 lakhs, M/s. Tuber Pharma Chemicals Limited, Ranipet (hereinafter referred, to as the Writ Petitioner) has mortgaged the lands, buildings and premises together with all plant and machinery in favour of the Tamil Nadu Industrial Investment Corporation Limited (hereinafter referred to as the Corporation) for the due repayment to the Corporation of the principal amount with interest, commitment charges, sundry dues, expenses and other charges as provided therein. On 24-5-1990, the Corporation issued a legal notice fore-closing the loan and calling upon the writ petitioner to pay the Corporation within 15 days of receipt of the said notice the sum of Rs. 77,11,350,07., being the entire principal of the loan, interest thereon, etc., upto 31-3-1990 and other charges and dues amounting to Rs. 18,827.80 and aggregating to Rs. 77,30,212.87 with further interest and additional interest at the prevailing rates till date of payment and other charges and dues, failing which the Ccorporation will without any further intimation or reference proceed to exercise and enforce the rights reserved to it under the said deeds of mortgage, etc., including the right to exercise the power of sale, appointment of receiver or filing a suit in Court of Law or resorting to action under the provisions of the State Financial Corporations Act (hereinafter referred to as the Act). The specimen advertisement proposed to be made by the Corporation was also enclosed along with that notice for information.

(2.) With reference to the advertisement made by the Corporation in the Hindu daily dated 10-7-1991, M/s. Malladi Drugs and Pharmaceuticals Limited, 2nd respondent in the writ petition and the petitioner in the Review Application (hereinafter referred to as the Review Petitioner), submitted an offer for an amount of Rs. 32.10 lakhs to purchase all the assets of the writ petitioner. There view petitioner has also enclosed a demand draft for Rs. 3.21 lakhs. It further promised to pay an additional sum of Rs. 1.79 lakhs on acceptance of its offer and before taking delivery of the assets and the balance will be paid in quarterly instalments spread over to three years. The Corporation by its communication dated 6-9-1991 accepted the offer made by the review petitioner for the purchase of land, building and machineries of the writ petitioner for Rs. 32.10 lakhs in a public auction held on 14-8-1991 subject to the following conditions :

(3.) As already seen, to realise the dues of the writ petitioner, an auction was conducted on 14-8-1991 and the offer of the review petitioner for Rs. 32. 10 lakhs was accepted and the assets of the writ petitioner were handed over to the review petitioner on 24-9-1991. After giving credit to the amounts realised in the auction, a sum of Rs. 64,46,538.77 was payable by the writ petitioner to the Corporation with future interest. Therefore, a registered notice dated 20-2-1992 was issued to the guarantors and directors of the writ petitioner company. They were jointly and severally liable to pay the said sum within seven days from 20-2-1992, failing which the Corporation will be constrained to initiate appropriate legal action to recover the dues.