Writ jurisdiction limits in takeover disputes: accounting and liability claims under section 29 were left to civil remedy.

A writ petition under Article 226 was held not maintainable for settlement of accounts and allied reliefs arising from a takeover under section 29 of the State Financial Corporations Act, 1951, where the takeover itself was not challenged. The Court applied the settled principle that section 29 permits the Corporation to proceed against a defaulting industrial concern and recover dues by taking over and disposing of the unit. Disputed accounting and liability questions were treated as unsuitable for writ adjudication and were left to be resolved amicably or by civil suit. The petition was dismissed, leaving the parties to pursue civil remedies.

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Issues: Whether a writ petition under Article 226 could be maintained for settlement of accounts and allied reliefs arising out of takeover of a unit under section 29 of the State Financial Corporations Act, 1951, when the borrower had not challenged the takeover action itself.

Analysis: The petitioners had defaulted in repayment, and the Corporation had acted under section 29 to take over the unit for recovery of its dues. The Court applied the principle that the manner of exercise of power under section 29, as explained by the Supreme Court, permits the Corporation to proceed against a defaulting industrial concern and work out the modalities of recovery and disposal of the seized unit. Since the takeover itself was not under challenge, the dispute raised by the petitioners was confined to accounting and settlement of liabilities. Such disputed accounting matters were held not to be suitable for adjudication in writ proceedings and were left to be resolved amicably or through a civil suit for settlement of accounts.

Conclusion: The writ petition was not maintainable for the reliefs sought and the challenge failed.

Final Conclusion: The petition was dismissed, leaving the parties to pursue any appropriate civil remedy for settlement of accounts.

Ratio Decidendi: A writ court will not ordinarily entertain disputes over accounting and settlement of liabilities arising from a takeover under section 29 of the State Financial Corporations Act, 1951, especially where the takeover itself is not challenged and an alternative civil remedy is available.

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