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2008 Supreme(Pat) 750
PATNA HIGH COURT
Barin Ghosh and Jayanandan Singh JJ.
Most.Meera Tiwary
Versus
Bihar State Financial Corporation
Letters Patent Appeal No. 1043 of 1999 ;
Decided On : JUNE 23, 2008
Acceptance of transfer of assets to the purchaser rendered the appeal infructuous.
Headnote:
Section 29 - State Financial Corporation Act, 1951 - Sale of assets - Appellant sought direction to prevent sale of assets by the Corporation - Corporation exercised power under Section 29 for sale - Appellant's writ petition dismissed as sale was already effected - Appellant later offered to purchase the assets - Appeal dismissed as appellant accepted transfer of assets to purchaser
Fact of the Case:
Appellant sought to prevent sale of assets by the Corporation, but sale was already effected before the writ petition could be heard. Appellant later offered to purchase the assets.
Finding of the Court:
The appeal was dismissed as the appellant accepted transfer of the assets to the purchaser, rendering the appeal infructuous.
Issues: Appellant's attempt to prevent sale of assets, acceptance of transfer of assets to purchaser, and contention regarding consideration of offer by the Corporation.
Ratio Decidendi: The appellant's acceptance of the transfer of assets to the purchaser rendered the appeal infructuous, and the cause of action against the Corporation arising from the advertisement was not relevant to the present appeal.
Final Decision: The appeal was dismissed as it had become infructuous due to the appellant's acceptance of the transfer of assets to the purchaser.
Barin Ghosh and Jayanandan N.Singh JJ.
1. Appellant filed a writ petition seeking a direction upon respondent-Bihar State Financial Corporation not to sell the assets being the subject matter of the writ petition. The assets which were being proposed to be sold were part of an industrial undertaking promoted by the appellant and financed by the Corporation. The Corporation exercised its power under Section 29 of the State Financial Corporation Act, 1951 for the purpose of effecting sale of such assets and for that matter issued an advertisement. At that stage, appellant filed the writ petition, but before the writ petition could be taken up for hearing, the sale of the assets pursuant to the said advertisement was effected. On that ground principally the writ petition was dismissed by the order impugned in the present appeal.
2. While the appellant preferred the instant appeal, the buyer of the concerned assets could not pay the instalments which he agreed to pay to the Corporation towards consideration for sale of the said assets, and as a result, the Corporation re-exercised its power under Section 29 of the Act and once again took steps for sale of the selfsame assets and for that purpose issued an advertisement. Appellant at that stage acted upon the said advertisement and gave an offer to purchase the said assets. By reason of the said conduct on the part of the appellant, present appeal has become totally infructuous, for the appellant has accepted transfer of the assets in favour of the purchaser and re-exercise of power under Section 29 of the Act by the Corporation as against the purchaser. In these circumstances, the present appeal having become infructuous, the same is dismissed.
3. The appellant purports to contend that his offer pursuant to the advertisement has not yet been considered by the Corporation.
4. The cause of action of the appellant against the Corporation arising out of said advertisement has nothing to do with the present appeal. In the circumstances, such cause of action cannot be clubbed with the present appeal. For that the appellant would be required to take independent separate measure. Liberty therefore is reserved.
