State Industring Promotion Cor v. M/S Madras Magnetic Media Ltd.
O.P.No.300 of 2004 P.VELMURUGAN, J.
The petitioner is the State Industries Promotion Corporation of Tamilnadu Limited (Finance) and the first respondent is the Private Limited Company. The first respondent has borrowed money for construction of buildings and purchase of machinery from the petitioner Corporation and the second and third respondents are the guarantors. Since the first respondent Company has not repaid the money, the petitioner has sent a show cause notice dated 08.08.1991 and issued a foreclosure notice on 28.11.1991. Though the service of said notice, the first respondent has not repaid the loan amount together with interest. Therefore, the petitioner has taken possession of the Unit on 16.06.1992 exercising the powers conferred under section 29 of the State Financial Corporations Act and sold the same by public auction. Despite the same, still a sum of Rs.15,24,99,297.30 is due and payable by the respondents as on 29.02.2004. In order to recover the outstanding amount from the respondents, the petitioner Corporation has filed this Original Petition.
2. The respondents have been duly served and their names have also been printed in the cause list today. Since there is no representation on the side of the respondents, they are set exparte by this Court.
3. Before the learned Master, the Assistant Manager to the petitioner Corporation who is the authorised person was examined as PW1 and he has also filed his proof affidavit. In his chief examination, he has filed 18 documents which were marked as Ex.P1 to Ex.P19 and they are as follows:
Exhibits Nature of Documents P1 Original Authorisation Letter dated 21.07.2014 issued by the petitioner P2 Original Terms and Conditions of Sanction dated 02.07.1987 to the respondent.
P3 Original Deed of undertaking dated 07.12.1987 P4 Original Deed of Hypothecation dated 07.12.1987 P5 Original Registered Mortgage Deed dated 07.12.1987 P6 Series (2 nos.) are the Form No.8 for creation of Equitable Mortgage and Registered Mortgage for term loan P7 Original Personal Guarantee for term loan dated 07.12.1987 P8 Office copy of the seed capital sanction letter dated 09.09.1987 P9 Original deed of agreement for seed capital P10 Original seed capital term loan joint deed of guarantee individuals dated 21.03.1988 P11 Office copy of the Fore closure and recall order dated 28.11.1991 P12 Certified copy of the minutes of the meeting approving the offer made by the respondent dated 31.12.1997 P13 Photocopy of the sale of mortgage asset dated 30.09.
1998 P14 Photocopy of the report of the project officer handing over mortgaged assets to the respondent P15 Office copy of the letter dated 29.12.1998 sent by the petitioner to CMDA P16 Office copy of the notice to revoke personal guarantee dated 19.07.2000 of two promoters P17 Series (2 nos) are the returned covers P18 Photocopy of the Gazette notification dated 28.05.
4. A reading of the petition as well as the oral and documentary evidence reveals that the respondents are liable to pay the loan amount together with interest. Therefore, the petitioner Corporation has proved their claim.
5. In the result, this Original Petition is allowed and the respondents 2 and 3 are jointly and severally liable to pay the outstanding amount i.e., Rs.15,24,99,297.30 together with interest at the rate of 15% per annum from the date of filing of this petition till the date of realisation to the petitioner within a period of three months from the date of receipt of a copy of this order, failing which, the petitioner is entitled to proceed for consequential relief as prayed for.
28.02.2022 nl
P.VELMURUGAN, J.
nl O.P.No.300 of 2004 28.02.2022