JUDGMENT: - This is a dispute between ?d two wings of the State. Each one is trying to claim priority over the other.

THE FACTS :

This petition is at the instance of M/s. to SICOM Ltd., the Company established by the Government of Maharashtra for development of industries under the provisions of the State Financial Corporation Act, 1951 ("Act" for - short); which carries on business of financing industrial undertaking in the State of Maharashtra.

2. The Government of India, in exercise of powers conferred by sub-section (1) of section 46 of the said Act, issued Notification dated 11th December, 1986, extending provisions of various sections amongst other, sections 27,29,30,31, 32-A to 32-F, 41, 41A and 44 of the said Act of the said Act to the petitioner. The petitioner is, therefore, deemed State Financial. Corporation within the meaning of section 46 of the said Act.

3. The petitioner, under an Indenture of Mortgage dated 22nd December 1986 has advanced a sum of Rs. 51,00,000/- by way of term loan to one M/s Nihal Cast Nylon Pvt. Ltd. ("the borrower" for short). In consideration of the petitioner advancing the said term loan, the borrower created a first charge by way of legal mortga

Click Here to Read the rest of this document