Patna Court January 1970 Judgments

Jamshedpur Cement Ltd., a Company Registered Under the Indian Companie ...

Court: Patna

Reported in: 2009(57)BLJR2248

Navaniti Prasad Singh, J.1. Petitioner No. 1 is the Company incorporated under the provisions of the Indian Companies Act, 1956. Petitioner No. 2 is a Company to whom petitioner No. 1 has assigned its debt. Petitioner No. 1 had taken substantial term loan from Bihar State Credit and Investment Corporation Limited (hereinafter referred to 'as BICICO'). BICICO is a financial corporation established under the State Financial Corporation Act, 1951.2. Petitioner No. 1 had set up a mini cement plant with the finance made available at Jamshedpur. For various reasons, the plant could not operate economically enough to pay back to BICICO. Petitioner No. 1 was a defaulter. BICICO came up with BICICO ONE TIME SETTLEMENT (TERM LOAN) SCHEME, 2006. The major distinction between this scheme and earlier scheme for One Time Settlement was that once the settlement amount was calculated and communicated, the Unit had an option to either pay it directly or take a loan from a third party and pay to BICICO....