1

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 29^TH DAY OF JANUARY, 2021

PRESENT

THE HON'BLE MRS. JUSTICE S. SUJATHA

AND

THE HON'BLE MR. JUSTICE M.I.ARUN

MFA NO.2462 OF 2013 (SFC)

BETWEEN:

KARNATAKA STATE INDUSTRIAL AND

INFRASTRUCTURE DEVELOPMENT

CORPORATION LTD., (EARLIER KNOWN

AS KARNATAKA STATE INDUSTRIAL

INVESTMENT & DEVELOPMENT

CORPORATION LTD.,) KHANIJA BHAVAN

4^TH FLOOR, EAST WING, NO.49

RACE COURSE ROAD, BANGALORE-560 001

... APPELLANT

(BY SRI. V.S.ARBATTI, ADV.)

AND:

1.

M/S UNIJECT NEEDLES LTD.,

REGD. OFFICE BEING AT

NO.17, NALANDA, PALACE

GARDEN APT. COMPLEX

NO.23-24, PALACE CROSS

ROAD, BANGALORE – 560 020

SUBSEQUENTLY CHANGED TO

PLOT NO.16-A, KIADB AREA

NANJANGUD – 571 301

2.

SRI. RAMAN BALAKRISHNAN

S/O V. RAMAN, MAJOR

R/O P. B.NO.16901

DUBAI, UAE

2

3.

P. K. ASHOKAN

S/O KUNJITTY, MAJOR

R/O P. B. 6736

ABUDHABI

4.

A. RAJAN

S/O A. APPUJ, MAJOR

R/O TMAE ROAD

P. B. NO.49, ABUDHABI

5.

ABRAHAM

S/O C.A. VRGHESE, MAJOR

R/O WED PB 219

ABUDHABI

6.

P. S. SANALKUMARNA NAIRR

S/O P. VASUDEVAN PILLAI

MAJOR, R/O P. B. 1887

AL AIN, U.A.E

7.

ABDUL LATIF AYYARIL

S/O KUNJU MOLDEEN

AYYARIL MAJOR

R/O BOX 2427

ABUDHABI, UAE

8.

P. ARAVINDAKSHAN

S/O RAMAKUTTY NAIR

MAJOR, AL INS. CO.

P.B.NO.3077, ABUDHABI

9.

V. RAMACHANDRAN

S/O C. K. RAMA PANICKER

MAJOR, R/O ETISAIAT POB

400, DUBAI

10.

A. R. MENON

S/O RAMAN KUTTY MENON

MAJOR, R/O NO.17, NALANDA

PGA COMPLEX, PALACE CROSS

ROAD, BANGALORE – 560 020

... RESPONDENTS

(BY SRI. M.ASHWATHANARAYANA REDDY, ADV. FOR

R2 TO 210; VIDE COURT ORDER DATED 06.01.2016

SERVICE OF NOTICE TO R1 IS HELD SUFFICIENT)

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THIS MFA IS FILED UNDER SECTION 32(9) OF THE STATE

FINANCIAL CORPORATIONS ACT, 1951, AGAINST THE ORDER

DATED 21.11.2012 PASSED IN MISC.NO.115/2012 ON THE FILE

OF V ADDL. DISTRICT JUDGE, MYSURU, DISMISSING THE

PETITION FILED UNDER SECTIONS 31(1)(aa) AND 32(1) OF THE

STATE FINANCIAL CORPORATIONS ACT, 1951.

THIS MFA COMING ON FOR HEARING, THIS DAY, M.I.ARUN

J., DELIVERED THE FOLLOWING:

JUDGMENT

Aggrieved by the order dated 21.11.2012 passed in

Misc.No.115 of 2012 by V Additional District Judge, Mysore,

the petitioner therein has preferred this appeal.

2.

For the sake of convenience, the parties are referred

to as per their ranking before the court below.

3.

The petitioner-Karnataka State Industrial Investment

and Development Corporation Limited, preferred a petition

under Sections 31(1)(aa) and 32(1) of the State Financial

Corporations Act, 1951 (‘the SFC Act’ for short) to

determine that a sum of Rs.2,79,95,116.99 is due to the

petitioner from respondent no.1 as on 20.06.2000 together

with future interest at 15.5% per annum on a sum of

Rs.2,30,08,964.99 and at 24.5% per annum on a sum of

Rs.49,86,152/- and for a direction to respondent nos.2 to

4

10 jointly and severally to pay a sum of Rs.2,79,95,116.99

due as on 20.06.2000 together with future interest at

15.5% on a sum of Rs.2,30,08,964.99 and at 24.5% on a

sum of Rs.49,86,152/-.

4.

The case of the petitioner is that the petitioner is a

Corporation established under the Companies Act, 1956 and

by way of a notification of the Government of India,

Sections 29, 30, 31 and 32 of the SFC Act has been made

applicable to it.

5.

Respondent

no.1

is

a

public

limited

company

registered under the Companies Act and it approached the

petitioner for financial assistance. On considering the said

loan application, the petitioner sanctioned a term loan of

Rs.90,00,000/- and out of the said amount, Rs.76,77,000/-

was released. Respondent no.1 represented by its

Managing Director has executed a loan agreement dated

07.02.1990 which needs to be repaid as per the terms set

out therein. To s