W.P. No. 622 of 2006. Case: Quality Steel Wire Product Pvt. Ltd. and Anr. Vs W.B. Financial Corporation and Ors.. Calcutta High Court

Case Number:W.P. No. 622 of 2006
Party Name:Quality Steel Wire Product Pvt. Ltd. and Anr. Vs W.B. Financial Corporation and Ors.
Judges:J.K. Biswas, J.
Issue:State Financial Corporations Act, 1951 - Sections 29, 29(1), 30; Code of Civil Procedure, 1908 (CPC) - Sections 148, 151
Citation:AIR 2007 Cal 256
Judgement Date:June 06, 2007
Court:Calcutta High Court


Jayanta Kumar Biswas, J.

  1. The petitioners took out this writ petition dated April 26th, 2006 questioning the sale notice published by West Bengal Financial Corporation in the Economic Times on April 18th, 2006. The notice was published for sale of land and other properties of the first petitioner.

  2. Sometime in April 1984 the first petitioner took a Rs. 30 lakh term loan from the corporation. The properties sought to be sold were placed as security. Because of defaults committed by the first petitioner In repayment of the loan on December 31st, 2001 the amount payable by it became Rs. 2,29,64,638.16. After considering the first petitioner's proposal dated January 5th, 2002, the corporation agreed to settle the accounts on payment of Rs. 29 lakh at one stroke positively by March 27th 2002. Making the offer the corporation wrote letter dated March 1st, 2002 mentioning that in case of non-payment within the period, that offer would stand automatically cancelled and the previous position would be restored in all accounts of the first petitioner.

  3. The amount was not paid by March 27th, 2002, and on the other hand by a let ter dated March 27th, 2002 the first petitioner requested the corporation to extend the period up to June 31st (sic) 2002, the settlement did not materialise and the offer of the corporation stood automatically can celled. Since the first 'petitioner did not take any step for payment, the corporation is sued notice dated March 21st, 2006 under Section 29(1) read with Section 30 of the State Financial Corporations Act, 1951. It was stated that the amount payable on December 31 st, 2005 was Rs. 2,20,48,598.14. By a letter dated March 29th. 2006 the first petitioner requested the corporation to take Rs. 29, lakh by way of full and final settlement of the accounts. The first petitioner also prayed for instalment. The corporation declined to accept the offer. It then published the sale notice on April 18th, 2006.

  4. Counsel for the petitioners argues that the corporation was under an obligation to go by its offer dated March 1st, 2002. I am unable to agree with him. It was specifically mentioned In that offer that on the first petitioner's failing to pay Rs. 29 lakh at one stroke positively by March 27th, 2002 that offer would stand automatically cancelled. Admitted position is that the first petitioner did not pay the amount within the period mentioned in the offer letter. Hence it must be held that the corporation is...

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