Point in Issue :
Whether on deposit of part amount of one time settlement petitioner is entitled to return of assets and securities.

Jayant Patel, J.—The short facts of the case appears to be that the petitioner had applied for loan from respondent Corporation for establishment of the industrial unit and as per the petitioner the loan was sanctioned for Rs. 4 crore. Thereafter, the respondent Corporation intimated to the petitioner that the Regional Office had no power to sanction the loan exceeding Rs. 2.40 crore and, therefore, the loan was sanctioned for Rs. 2.40 crore in the year 2000. The respondent Corporation thereafter sanctioned the additional term loan of Rs. 1.35 crore and accordingly the total term loan was sanctioned of Rs. 3.75 crore. As per the petitioner, the disbursements were made of the first and second instalments, but in the third instalment on 30.8.2001, the respondent Corporation deducted the amount of interest due from the earlier disbursements and did not pay the full instalments. It is the case of the petitioner that as per the agreement of loan transaction, there was moratorium period of 24 months, therefore, the principal amount was not payable, in any case. On 5.11.2001, the officers of the respondent Corporation came to the Unit and forcibly applied the seal and all the employees and the workmen of the petitioner company were asked to leave the premises without giving any prior opportunity of hearing or any prior notice for exercise of such power. On 6.11.2001, thereafter the petitioner received a demand notice for the first loan account towards the interest and there were further correspondences. On 27.11.2001, the respondent Corporation also applied seals on the shops belong to the petitioner and other two individuals, which were offered as collateral security. The bank accounts of the petitioner were frozen, which became subject matter of Criminal Revision Application No. 532 of 2001 before this Court. At that stage, the petitioner approached this Court by the present petition, seeking appropriate writ to quash and set aside the action of the respondent Corporation in taking possession of the factory premise together with the Plant and Machinery of the petitioner company situated at Plot No. 356, Road No. 3, GIDC, Surat as well as the action of the Corporation for sealing the shops bearing No. 1030 and 1031 situated at Shreeji Textile Market, Surat and Shop Nos. 128, 129 and 130 situated at Good Luck Textile Market, Ring Road, Surat and the petitioner prayed for directing the respondent Corporation to hand over the possession of the Unit as well as the shops to the petitioner and the person concerned.

2. Heard Mr. Tushar L. Sheth, learned Counsel for the petitioner and Mr. R.D. Dave, learned Counsel for the respondent Corporation for final disposal.

3. Before the contentions raised by the learned Counsel for the respective parties are considered, certain developments have arisen pending the petition by virtue of the orders passed by this Court at the interim stage as well as by conducts of the respective parties, which ultimately may be required to be taken into consideration and the same are as under:—

(a) Pending the petition, it appears that the petitioner applied for One-Time Settlement (hereinafter referred to as ‘OTS’ for short) Scheme and the same also came to be considered by the respondent Board and as per the said Scheme the petitioner had to pay up the amount of Rs. 269.78 lac vide letter dated 16th September, 2004 of the respondent Corporation and the said amount was to be paid in two parts i.e. 25% of the amount was to be paid within one month and upon the payment of the said amount the possession of the assets of the primary security was to be restored and the balance amount of 75% was to be paid within three months by equal instalments payable on or before 25th of each month commencing from the month after the payment of the above referred 25% amount and no interest was to be charged during the said period of three months. However, if the time limit was extended beyond the period of three months for the a