https://www.taxtmi.com/caselaws?id=110176 An institution established by a State Government and notified under the State Financial Corporations Act remained a State Financial Corporation despite the Government's shareholding falling below 50 per cent, because the statutory character depended on its establishment and notification, not later dilution of shareholding. The exercise of recovery powers under the Act was therefore valid. A challenge to the auction sale of mortgaged assets also failed, as allegations of non-supply of dues particulars and inadequacy of consideration were unsupported by material evidence, and the borrower had been given opportunities to clear dues and improve bids. The completed sale was upheld, subject only to limited liberty regarding surplus proceeds. en-us Tue, 08 Nov 2005 00:00:00 +0530 Sat, 17 Aug 2013 16:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110176 An institution established by a State Government and notified under the State Financial Corporations Act remained a State Financial Corporation despite the Government's shareholding falling below 50 per cent, because the statutory character depended on its establishment and notification, not later dilution of shareholding. The exercise of recovery powers under the Act was therefore valid. A challenge to the auction sale of mortgaged assets also failed, as allegations of non-supply of dues particulars and inadequacy of consideration were unsupported by material evidence, and the borrower had been given opportunities to clear dues and improve bids. The completed sale was upheld, subject only to limited liberty regarding surplus proceeds. Case-Laws Companies Law Tue, 08 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110176