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IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dr.JUSTICE G.JAYACHANDRAN, J
Tamil Nadu Industrial Investment Corporation Limited – Appellant
Versus
Feena Petro Products Limited – Respondent
| Table of Content |
|---|
| 1. respondents contest loan validity (Para 4) |
| 2. lack of evidence and details (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 14 , 15) |
| 3. claim barred by limitation (Para 13) |
| 4. petition dismissed (Para 16) |
ORDER :
Tamil Nadu Industrial Investment Corporation (in short “TIIC”) is a Public Financial Institution governed by State Financial Corporation Act, 1951. This petition is filed under Section 31 and 31(1)(aa) of the State Finance Corporation Act, 1951 for recovery of money from the respondents, who have defaulted in repayment of loan amount advanced on mortgage of immovable properties and hypothecation of movables.
2. According to the petitioner, the Directors of M/s Fenna Petro Products Limited, sought s Term Loan for its two projects one at Vadamadurai Village, Thiruvallur District and another at Ettayapuram Village, Tuticorin District. A sum of Rs 84.10 lakhs and subsidy bridge loan of Rs.11.30 lakhs was sanctioned on 10.08.1994 and 10.03.1995 respectively. The first respondent company availed only 50% of the term loan sanctioned. It could not implement the second plant at Ettayapuram Village. However, for purchase of LPG Cylinders and Valves, the first respondent company ava
The court held that a claim for loan recovery is barred by limitation if not filed within three years of the last transaction, and proper mortgage documentation is essential for enforceability.
The right of a Financial Corporation to recover dues from guarantors survives post-liquidation of the principal debtor, and such guarantees remain enforceable.
Post-liquidation, a financial institution retains the right to recover dues from guarantors, reaffirming that guarantees remain enforceable regardless of the principal debtor's discharge during insol....
The limitation period for recovery of money from a surety under the State Financial Corporation Act is three years, and failure to initiate proceedings within this period renders the claim barred by ....
Guarantors are jointly and severally liable for debts owed by a principal debtor, and courts can pursue them even if the principal's assets are in the creditor’s possession.
The remedies under Sections 29 and 31 of the State Financial Corporations Act are independent and can be pursued separately.
Guarantors remain jointly and severally liable for loan defaults regardless of the principal debtor's separate legal status, as established under Sections 29 and 31 of the State Financial Corporation....
The court upheld the lower court's decision that a party cannot be held liable without credible evidence of their connection to a loan agreement, emphasizing the importance of properly executed and v....
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