Court : Madhya Pradesh
Reported in : AIR2002MP53; 2001(4)MPHT315; 2002(4)MPLJ314
..... is significant to quote section 32g of state financial corporations act, 1951 which reads thus:'32-g. ..... (shodhya rashiyon ki vasuli) adhiniyam, 1987, has been taken as contemplated under section 32g of the state financial corporations act, 1951.12. w.p. no. ..... liberty was given to proceed under section 29 though no such liberty was required or called for as the scope of proceedings under section 29 of the state financial corporations act to recover dues in case of default, by sale of mortgaged property is an independent ..... financial corporation took possession of the mortgaged assets on 7-4-2000 in exercise of powers under section 29 of the act ..... of an order for the sale of the property pledged, mortgaged or hypothecated or assigned as security for the loan or advance, or for enforcing the liability of any surety, or for transferring the management of the industrial concern to the financial corporation, or for an ad-interim injunction restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the board where such ..... 226/227 of the constitution of india for quashing communication dated 10-4-2000 (annexure p-30) whereby the petitioners have been informed that their mortgaged assets shall be sold for recovery of outstanding dues in exercise of the powers conferred under section 29 of the state financial corporations act (hereinafter referred to as 'the act') by the respondent m.p. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR2006MP118; 2005(4)MPLJ494
..... acted in a bona fide manner in sale of the properties of the petitioner in exercising its right under section 29 of the state financial corporations act, 1951 ..... was informed that in exercise of powers conferred under section 29 of the state financial corporation act, the m.p.f.c. ..... for consideration in this case is whether the financial corporations setup under section 3 of the state financial corporation act (hereinafter referred as 'the act') is entitled to take recourse to the remedy available to it under section 29 of the act even after having obtained an order or a decree after invoking the provisions of section 31 of the act. ..... in the result, the permission sought for to abandon the proceedings under section 31 of the state financial corporation act, giving rise to the impugned order is granted and the entire proceedings culminating in the order impugned in the appeal ..... unit taken over and sold and the action initiated under section 29 of state financial corporation act taking over unit and selling it, was just and proper ..... found that the guidelines issued in mahesh chandra (air 1993 sc 935) placed unnecessary restrictions on the exercise of power by the financial corporation contained in section 29 of the act by requiring the defaulting unit-holder to be associated or consulted at every stage in the sale of the properly. ..... court observed that:it is one thing to assist the borrower who has intention to repay, but is prevented by insurmountable difficulties in meeting the commitments. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR1991MP156; 1991(0)MPLJ36
..... petitioner is an 'industrial concern' within the meaning of the terra employed in section 2(c)(iii) of the state financial corporations act, 1951, for short, the 'act'. ..... the reliefs mentioned in clauses (a) and (e) of sub-section (1) of section 31, the district judge shall pass on ad interim order attaching the security, or so much of the property of the industrialconcern as would on being sold realise in his estimate an amount equivalent in value to the outstanding liability of the industrial concern to the financial corporation, together with the costs of the proceedings taken under section 31, with or without an ad interim injunction restraining the industrial concern from transferring or removing its machinery, plant of equipment. ..... can be claimed:'(a) for an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the financial corporation as security for the loan or advance; or(aa) for enforcing the liability of any surety; or(b) for transferring the management of the industrial concern to the financial corporation; or(c) for an ad interim injunction restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the board, ..... advisedly did not vest that power in the district judge as in passing the order of ad interim injunction, he is empowered only to restrain the industrial concern from transferring or from removing its property, plant or .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR2002MP91; 2002(5)MPHT220
..... that resulted in mpfc taking action against them in view of provisions of section 29 of the state financial corporations act, 1951 (hereinafter referred to as act for convenience).3. ..... in this context the preamble in enactment of state financial corporations 1951 will have to be seen. ..... owned by namdeo s/o phatandas panjwani, the appellants obtained a loan from m.p, financial corporation (mpfc). ..... this applies to small scale industries also where they are to be helped for the purpose of upcoming from the financial difficulties which are tending to take them to ruins or demolishing of the industries resulting in creation of unemployment and addition to persons who are already unemployed, thus, creating depression in the entire industries,13. ..... all led to a goal of achieving industrial growth for that purpose necessary provisions have been made for giving financial assistance to such industrial units so as to make them independent to repay the loans advanced by mpfc or to repay the amount which has been taken by it for disbursing the sanction limits. ..... the appellants are hereby prohibited from selling, exchanging, gifting, removing, creating third party interest or alienating the assets of those mortgaged units in any way to prejudice the rights of mpfc to recover the said amount. ..... this vast human resources and man power remain idle, since majority own little or marginal land holdings but depend on agriculture as their livelihood. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : [2001]124STC354(MP)
..... , benson pharmaceuticals failed to repay the loan and hence mpfc invoked their powers conferred under section 29 of the state financial corporation act, 1951 and advertised the aforesaid unit for sale on october 9, 1987. ..... in my opinion, the petitioner had nothing to do with the defaulting unit as they were the bona fide auction purchaser of the said defaulting unit in auction proceedings held by mpfc under section 29 of the state financial corporation act, 1951. ..... the petitioner also obtained financial assistance from mpfc for running the unit and then began commercial production in 1988.3. ..... learned counsel for the state supported the impugned rejection.9. ..... in other words, petitioner was in no way concerned with any of the acts and activities of defaulting unit. ..... the state by filing the return supported the impugned rejection and the reasoning contained therein.6. ..... the petitioner then executed a fresh lease deed (annexure p/10) with industries department of state. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR1999MP188
..... in the said case, this court on 10-5-1995 passed the following order:--'the possession of the petitioner's factory has been taken over on 15-3-1995 in exercise of power under section 29 of the state financial corporation act, 1951. ..... the petitioner had become a defaulter in payment of the instalments steps were taken by the corporation which recalled the loan and proceeded to seize the unit under section 29 of the state financial corporation act, 1951 (hereinafter referred to as 'the act'). ..... these considerations which govern the sale of public property have been held to be applicable to a sale of property by the state financial corporations under section 29 of the act in mahesh chandra case (air 1993 sc 935) ..... lacs were advanced therefore, the said amount was not sufficient to establish the factory, therefore, the financial corporation cannot exercise powers under section 29 of the said act as they have committed a breach of the agreement.after hearing counsel, if the petitioner deposits rs. ..... has brought to the notice of this court about the decisions rendered in the case of karnataka state financial corporation v. ..... financial corporation, air 1993 sc 935 wherein the apex court while dealing with the role of financial corporation in disposing the property seized under section 29 of the act held as follows ..... as the writ petition has been dismissed as withdrawn it is not open to the petitioner to challenge with regard to exercise of power bestowed on the corporation under section 29 of the act .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : [2004]52SCL18(MP)
..... as the petitioner failed to repay the loan amount the corporation exercised its special power conferred to it under section 29 of the financial corporation act, 1951 and took over the possession of the land, building, plant and machinery mortgaged to ..... of bihar state financial corporation v. ..... his submission he has placed reliance on the latest pronouncement of the supreme court in the case of state financial corporation v. ..... resisting this submission of counsel for the petitioner it has been stated by learned senior counsel for the corporation that the same was only an opinion and more over the assessment of the petitioners surveyor is dated ..... as the petitioner informed that the working capital may be sanctioned by the state bank of indore, udankhedi branch-district-rajgarh the corporation released the second charge on the properties mortgaged by the petitioner with the corporation vide deed of mortgage dated 12-5-1987. ..... apex court further held that the debtor was prevented by unsurmounted difficulties from repaying the loan need to be established by adducing sufficient material ..... lordships further held that the considerations which govern the sale of public property would be applicable to a sale of property by the state financial corporation under section 29. ..... state of haryana air 1988 sc 218 1 it has been held by the supreme court that when a point which is ostensibly the point of law is required to be substantiated by fact, is being raised by the writ petitioner he should not .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : 2007(1)MPLJ191
..... the respondents failed to make the payment of instalments on loan and interest and hence the corporation took over all the building, plant and machinery in exercise of the power conferred under section 29 of the state financial corporation act, 1951. ..... under section 29 of the sfc act, 1951 the corporation has right to transfer (by way of lease or sale) and realize the property pledged or mortgaged, hypothecated or assigned to the financial corporation and in doing such transfer all rights in the property transferred shall vest in the transferee as if transfer is made by the owner ..... the financial corporation sold the factory in favour of ..... 000 from madhya pradesh financial corporation limited. ..... this court by order dated 14.12.1995 held that the action taken by the corporation in entering into an agreement with anuj rice products, shivpuri in accordance with section 29 of sfc act and while dismissing the petition gave opportunity to the respondents to seek remedy of redemption, if any, available under the ..... since the arbitrator failed to decide the dispute within a period of three months and as such respondents filed an application for removal of the arbitrator under sections 11 and 12 of the arbitration act, 1940. ..... the respondents filed an application for removal of arbitrator under sections 11 and 12 of the act. ..... the trial court vide order dated 14.05.1993 allowed the application and removed the director to act as an arbitrator and directed the parties to appoint another arbitrator. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : 1994(0)MPLJ435
..... the petitioner, a private limited company registered under the companies act, is facing action under section 29 of the state financial corporation act, 1951 (hereinafter referred to as the act) and is invoking jurisdiction of this court under article 226 of the constitution, questioning the constitutional validity of the said provision and legality of the action taken ..... orissa state financial corporation, air 1985 orissa ..... section 29 no doubt confers wide powers on the financial corporation but the purpose of those powers is to ensure prompt payment of money advanced to the ..... as dealing with the property or taking possession thereof is concerned the power relates to the property pledged, mortgaged, hypothecated or assigned to the financial corporation. ..... was therefore held that it was not the obligation of the financial corporation to revive and resurrect every sick industry irrespective of the cost ..... the submission of the learned counsel for the petitioner is that section 29 of the act, in so far as it empowers the financial institution to take forcible possession of the unit, confers arbitrary and unguided power and is for that reason violative of article 14 of the constitution (para 23 of the ..... it is also common ground that because of difficulties faced by the petitioner-company in making payment of loan in instalments as originally agreed, the arrangement for repayment was re-scheduled on 18-7-1984, 6-12-' 1986, 22-12-1988 and 3-5-1991 in consultation with the petitioner .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : AIR1997MP113; 1997(2)MPLJ80
..... the appellants have filed this appeal under section 32(9) of the state financial corporations act, 1951 (for short 'the act') against the judgment and decree, dated 8-12-1988 passed in m.j.c. no. ..... while dealing with the provisions of sections 31 and 32 of the act, this court in gujarat state financial corporation v. ..... state financial corporation v. ..... section 29 of the act deals with the right of the financial corporation set up under section 3 of the act, in case of default in payment of loans or advances or instalments thereof by an industrial concern. ..... section 30, then empowers the corporation to require any industrial concern to discharge forthwith, in full, its liability to the corporation of claims by the financial corporation. ..... 198, para 9) : 'section 31(1) prescribes a special procedure for enforcement of claims by the financial corporation. ..... section 31 contains special provisions for enforcement of claims by the financial corporation. ..... to a financial corporation as security for the loan or advance; transfer of the management of the industrial concern to the financial corporation or restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the board of the financial corporation. ..... section 32 of the act deals with the procedure and the powers of the district judge while dealing with application under section 31 of the act.7. .....
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