2004 (3) TMI 412

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....or the Respondent. JUDGMENT AND ORDER P.P. Naolekar, CJ. - On 7-10-1985 the Board of Directors of Assam Financial Corporation (AFC) had sanctioned a term loan of Rs. 30,00,000.00 to M/s Super Packaging Ltd., Jorhat for establishment of a medium scale unit at Jorhat, Assam for manufacturing of HDPE woven sacks to use for packaging items like food grain, fertilizers, cement etc. The commercial....

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....same was rejected. Later on, by letter dated 31-3-1995 the AFC offered to the Company for one time settlement in accordance with the policy decision taken by the AFC for settlement of outstanding dues of any party concerned. When the Company received the letter of the AFC making an offer for one time settlement under the terms and conditions mentioned therein, a counter proposal was made by the Co....

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....at the AFC will freeze charging of interest w.e.f. 1-4-1995. The Company expects that from the inception only simple interest will be charged. 2. After the counter proposal was made, the AFC by letter dated 26-6-1995 issued by the Manager (Recovery) of the AFC, withdrew the one time settlement facility offered to the Company. On 1-9-1995 the memorandum was prepared by the Managing Director wher....

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...., which goes xoutside the policy decision, could not be taken by any official except the Board. From the documents submitted before us, particularly the minutes of the meeting of the Board of the AFC dated 12th September, 1995, we do not find that the Board has applied its mind to the proposals made by the company on 28-4-1995. Power to accept or reject the proposal, which goes beyond the policy d....