https://www.taxtmi.com/caselaws?id=109444 Coercive takeover and auction of a hotel unit under the State Financial Corporations Act were found unjustified where the recall notice demanded immediate repayment before the first instalment had fallen due and the corporation admitted the notice was mistaken. The corporation was also required to consider whether any legal heir of the deceased borrower could be proceeded against before coercive steps. Restoration of the unit was declined because the auction purchaser had remained in possession for years and had invested in it, so monetary compensation was substituted. The guarantor could not be made liable for the entire outstanding dues; liability was confined to the balance recoverable after adjustment of sale proceeds, with interest only up to takeover. en-us Mon, 20 Oct 2003 00:00:00 +0530 Tue, 10 Apr 2012 12:34:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109444 Coercive takeover and auction of a hotel unit under the State Financial Corporations Act were found unjustified where the recall notice demanded immediate repayment before the first instalment had fallen due and the corporation admitted the notice was mistaken. The corporation was also required to consider whether any legal heir of the deceased borrower could be proceeded against before coercive steps. Restoration of the unit was declined because the auction purchaser had remained in possession for years and had invested in it, so monetary compensation was substituted. The guarantor could not be made liable for the entire outstanding dues; liability was confined to the balance recoverable after adjustment of sale proceeds, with interest only up to takeover. Case-Laws Companies Law Mon, 20 Oct 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109444