S.N.JHA, J.

1. The dispute in this writ petition relates to distress sale of a Cold Storage, Durga Bhawani Cold Storage (P) Ltd. re-christened M/s Maa Mamta Cold Storage (P) Ltd., under the Bihar State Financial Corporation Act, 1951 (in shortthe Act).

2. The petitioner originally prayed for quashing of the sale notice, dated 12-1-1990, under S. 29 of the Act, enclosed as annexure-1 to the writ petition, and sought consequential and incidental reliefs. By amendment further prayer for quashing of the order dated 20-2-1990 and the transfer deed dated 14-5-1990 was made. By the said order dated 20-2-1990 contained in Annexure-17, acceptance of offer of respondent No.5 Nagendra Singh for purchase of the Cold Storage was communicated and the Branch Manager, Chapra Branch of the Corporation was authorised to enter into the premises and take over the mortgaged assets on behalf of the Corporation and hand over the same to the said purchaser. By the transfer deed dated 14-5-1990 the transfer of the Cold Storage was effected in favour of respondent Nagendra Singh.

3. The case of the petitioner so far as relevant is as follows. The petitioner, a private limited Company after obtaining registration from the Industry Department of the Government of Bihar applied to the Bihar State Financial Corporation (in short the Corporation) for a term loan of Rs.15 lacs for setting up a Cold Storage in the year 1978-79. In 1979 loan of Rs.14 lacs was sanctioned for construction of the First Chamber of the Cold Storage, repayable by the year 1990 with interest @9% per annum. Out of the said amount Rs.13,98,977.00 was released between May 1979 and 1981. By 9-11-1981 the petitioner paid Rupees 1,47,022.39.00 in instalments. Meanwhile, it applied for another term loan of Rs.14 lacs for construction of the Second Chamber. On 9-1-1982 second loan of Rs.14 lacs was sanctioned repayable in 9 annual instalments from 1-7-1984 to 1-7-1992. The re-payment of the first loan was also re-scheduled in instalments of Rs. 1.14 lacs each from 1-1-1984 to 1-7-1993 with interest @14.25 percent payable on half yearly rest. On 1-3-1983 subsidy of Rs.2,66,865.00 was sanctioned on the request of the petitioner which was adjusted against its loan account. By 20-11-1983 the petitioner paid Rs.3,68,878.27.00. The Corporation however, on 13-6-1984 recalled the loan on the ground of insufficient payment. Between 19-7-1984 and 15-10-1985 further payment of Rs.3.35 lacs was made in instalments. However on 18-9-1985 the corporation decided to take possession of the mortgaged assets in exercise of power under S. 29 of the Act and on 23-12-1985 advertised the Cold Storage for sale but no offer was received. Between 31-1-1986 and 24-3-1986 the petitioner made further payments to the tune of Rs.1,66,976.64.00 on 13-10-1986, however, the Corporation took over the possession of the Cold Storage and initiated certificate proceeding for realisation of the dues. On 5-1-1999 it re-advertised the Unit for sale but again no offer was received. On 31-3-1989 further sum of Rs.1 lac was paid by the petitioner. On 11-8-1989 the Advisory Committee of the Corporation decided that petitioner must pay Rs.14 lacs against the existing dues in the financial year 1989-90. The petitioner paid Rs.5.44 lacs between 6-9-1989 and 13-12-1989. On 13-12-1989 he made request for re-schedulement of the loan under the Rehabilitation Scheme. On 10/12-1-1990 the Corporation asked the petitioner to clear the interest over the dues so that its case may be considered for re-schedulement and grant of admissible rebate. On 12-1-1990 itself however, it again advertised the unit for sale. Pursuant to the notice respondent No. 5 offered to buy the Unit for the amount against the petitioner. Along with the offer he submitted a Bank Draft of Rs.5 thousand as earnest money. The Tender Committee in its meeting on 23-1-1990 resolved to reject the tender on the ground that there was no specific offer and respondent No.5 had m