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1981 Supreme(Kar) 68

G.N.SABHAHIT
M. A. KAMATH AND ETC. – Appellant
Versus
KARNATAKA STATE FINANCIAL CORPORATION AND ETC. – Respondent


( 1 ) THESE writ petitions are instituted under Article 226 of the Constitution of India. Petitioner in each case is an industrialist and he took loan and advance, from the Karnataka State Financial corporation (respondent 5) for the development of industry. It is the case of 1he respondents that the loanees did not repay the loans in accordance with the terms of the agreement for advancing loans and in some cases they did not even utilise loans for the proper purpose. Hence, the loans were recalled and steps were taken for recoveries under the Karnataka Public Moneys (Recovery of Dues) Act, 1976. The present writ petitions are filed challenging the competence of respondent 5 the Karnataka State Financial Corporation to so recover the loans as arrears of land revenue under the provisions of the Karnataka Public Moneys (Recovery of Dues) Act 1979.

( 2 ) THE writ Petitions are resisted by the respondents. They have contended by the counter filed by respondents 4 and 5 Viz,, the Managing Director, Karnataka State Financial Corporation , and the Karnataka State, Financial Corporation, that they had the competence to call for the dues as the moneys were not paid in accordance with the







































































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