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2014 Supreme(Raj) 1771

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Alok Sharma, J.
Peetam Oil & Flour Mill, Dandoli - Appellant
Versus
The RFC - Respondent
S.B. Civil Misc. Appeal No. 55 of 2007
Decided On : 7-10-2014

Advocates:
For the non-Applicant/Appellant:D.K Garg, Advocate.
For the Respondent:Alok Garg, Advocate.

Headnote:State Financial Corporations Act, 1951 – Section 31 – Jurisdiction to pass money decree – Money decree cannot be passed on an application under Section 31(1) of the Act – Order passed by District Judge is set aside – Appeal is allowed – Matter remanded to Trial Court to address application of the applicant in accordance with law – Appeal Allowed.

JUDGMENT

1. - A challenge has been made to the order dated 20.5.2004 passed by the learned Additional District Judge, Dholpur (hereinafter 'the trial court') effectively passing a money decree of Rs. 80,352/- against the defendant appellant (hereinafter 'the defendant firm') along-with interest @ 9% p.a from the date of filing of the application under section 31(1)(a)(aa) of the State Financial Corporation Act, 1951 (hereinafter 'the Act of 1951') till the date of payment of the amounts due.

2. Counsel for the defendant firm has submitted that the order dated 20.5.2004 passed by the trial court is ex-facie contrary to law as it has been consistently held by the Hon'ble Apex Court as also this Court that a money decree cannot be passed on an application under section 31(1) of the Act of 1951. Reference has been made to the Judgments of this Court in the case of M/s. N.L.P. Organics Pvt. Ltd . E Ors. v. Rajasthan Financial corporation, AIR 2007 Rajasthan 10 and the judgment of this Court in the case of M/s. O.K Gaur & Company v. Rajasthan Financial Corporation, 2000 (3) WLC 736 in support of the contention.

3. Mr. Alok Garg counsel appearing for the applicant Rajasthan Financial Corporation (hereinafter 'the applicant RFC') does not controvert the legal position that a money decree cannot be passed on an application made under section 31(1) of the Act of 1951 as the scope of the said provision is limited to situations detailed clauses (a) to (c) in the said section.

4. Consequently, this civil misc. appeal is allowed and the order dated 20.5.2004 passed by the Addl. District Judge, Dholpur is quashed and set aside. The matter is remanded to the trial court to address the application of the applicant RFC in accordance with law. The trial court is also directed to dispose of the said application in terms of section 31 of the Act of 1951 within a period of six months from the date of receipt a certified copy of this order.Appeal Allowed.

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