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VAIBHAVI D. NANAVATI
Ashwin Wire Products Ltd. – Appellant
Versus
Gujarat State Financial Corporation Ltd. – Respondent
ORDER :
(Vaibhavi D. Nanavati, J.) :
1.1. Further affidavit filed by the respondent – Gujarat State Financial Corporation dated 06.08.2024 tendered by Mr. A.S. Asthavadi, learned advocate appearing for the respondent, is taken on record.
1.2. Draft Amendment dated 19.12.2023 is taken on record. The same is allowed and directed to be carried-out forthwith.
2. Heard Mr. Chinmay M. Gandhi, learned advocate appearing for the petitioner and Mr. A.S. Asthavadi, learned advocate appearing for the respondent.
3. The petitioner herein has challenged the action of the respondent of initiating the recovery of an amount of Rs.62,53,033/- vide notice/communication/orders dated 21.02.2023 and 22.09.2023, duly produced at Annexure-A (collectively). It is the case of the petitioner that the aforesaid action undertaken by the respondent is against the settled principles of natural justice.
4.1. Briefly stated that, it is the case of the petitioner herein that the petitioner had purchased the Industrial Unit/Plot on 25.03.1997 under an auction conducted by the respondent – Corporation. It is the case of the petitioner that the petitioner paid an amount of Rs.25,24,932/- towards the full sale consideration
The court established that communications regarding outstanding dues do not equate to recovery orders, especially when a civil suit on the same matter is pending.
The court ruled that the respondent's unilateral deductions from payments violated principles of natural justice, requiring adherence to contract clauses and valid justification for any recovery acti....
The petitioner, as a secured creditor, can raise the claim for a share in the interest amount before the respondent No.1 as directed in the previous judgment.
The main legal point established in the judgment is the authority conferred by Sections 29 and 30 of the State Financial Corporation Act, 1951, and the implications of default in loan repayment on th....
Point of Law – The power to issue prerogative writs under Article 226 of the Constitution is plenary in nature and is not limited by any other provision of the Constitution This power can be exercise....
Recovery actions must adhere to mandatory procedures, ensuring due process and proper notice to the party liable, not conflated with unrelated entities.
A winding up petition cannot proceed if the statutory notice is not validly issued to the company as required by Section 434 of the Companies Act, 1956.
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