TaxTMI 
TaxTMI 
2011 (3) TMI 1479
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....er 11, 1987, the KFC took over the firm under section 29 of the State Financial Corporations Act, 1951 (in short "the Act"). On the same day, the Firm filed O. S. No. 2194 of 1987 with I.A. No. 1776 of 1987 for temporary injunction restraining the KFC from taking over the firm. (b) On October 7, 1988, a notice was published by the KFC in Mathrubhumi Malayalam daily inviting tenders from intending buyers for purchase of the property. The last date for submission of tender was October 31, 1988. Pursuant to the same, only one bidder, i.e., one Vincent Paul, submitted the tender quoting an amount of Rs. 7.5 lakhs as bid amount and also deposited the earnest money of Rs. 10,000 as stipulated in the tender notice. On the same day, after discussion and negotiation between the KFC and Vincent Paul, the KFC issued a letter to the said Vincent Paul expressing its willingness to sell the property for Rs. 8.25 lakhs subject to certain conditions. (c) By letter dated November 1, 1988, the firm filed O. S. No. 2109 of 1988 before the Munsif Court, Thrissur, seeking injunction to restrain the KFC from taking any action pursuant to the auction/sale proceedings and on the very same day the learne....
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....convey the property being the highest bidder in the second tender and the same was dismissed as infructuous by the High Court vide judgment dated January 22, 2002. Against the said judgment, K.K. Ummer Farook filed C.A. No. 3451 of 2003 before this court by way of special leave petition. 3. Heard Mr. Rajendran Nair, learned senior counsel for the appellant in C.A. No. 3446 of 2003, Mr. V. Giri, learned senior counsel for the appellant in C. A. Nos. 3450 and 3451 of 2003 and Mr. C. S. Rajan, learned senior counsel for respondent No. 1 in C. A. Nos. 3446 and 3450 of 2003, Mr. R. Sundarvardan, learned senior counsel for respondent No. 2 in C.A. No. 3446 of 2003 and respondent No. 3 in C. A. No. 3450 of 2003. 4. During the course of hearing, Mr. P.V. Dinesh, learned counsel appearing for the KFC filed additional affidavit stating that the KFC, formed in 1953, is a statutory Corporation constituted under the Act and more than 95 per cent. of the shares are held and controlled by the State Government. The Board is constituted under section 10 of the Act. According to him, the managing director is appointed by the State Government and its chairman is the nominee of Small Industries Deve....
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....me remedy but the procedure goes through the District Judge. In terms of this section, the KFC has to apply to the District Judge in whose jurisdiction the property may lie for an order of sale. However, section 29 provides for speedy recovery. 7. The procedure of attachment and sale of property though available under the Code of Civil Procedure, 1908, it shall apply only when there is a decree at the instance of any of the parties. In the present case, the KFC had not proceeded through the civil court but has taken independent action under section 29 of the Act. 8. Coming to the decree for specific performance granted by the High Court in favour of Vincent Paul, by notice under exhibit B1, KFC invited tenders from intending buyers for purchase of immovable property attached by them. The last date for submission of tender was October 31, 1988. Vincent Paul submitted a tender quoting an amount of Rs. 7.5 lakhs as bidding amount. He also deposited a sum of Rs. 10,000 for earnest money deposit as stipulated in the tender notice. One of the conditions of tender was that the successful bidder whose bid is accepted should pay 25 per cent. of the purchase price offered within one week, ....
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....ld be remitted to us within a week from the date of confirmation of the transaction. 2. The balance should be remitted in a lump sum within one month from the date of remittance of the initial payment. 3. All the formalities in this regard should be complied within two months. Leaving the amount of Rs. 10,000 remitted on October 31, 1988, the balance consideration amounting to Rs. 8,15,000 should be remitted to the Corporation to execute the sale deed and transfer the possession to you. Yours faithfully, Sd/- Manager (Recovery)" 10. According to the plaintiff-Vincent Paul, it was agreed to by him as to the offer of Rs. 8.25 lakhs by the KFC and in view of the fact that he has remitted a sum of Rs. 10,000 on October 31, 1988, as earnest money deposit, he was ready to pay the balance amount but the sale was not completed due to failure on the part of the KFC. Learned senior counsel for Vincent Paul submitted that communication dated October 31, 1988, is a concluded contract and no further confirmation is required in this regard and the plaintiff has to pay the balance amount and the KFC has to execute the sale deed and transfer the possession to him. The stand taken by learned....
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....id judgment, the KFC filed Civil Appeal No. 3446 of 2003 and K.K. Ummer Farook filed Civil Appeal No. 3450 of 2003 before this court by way of special leave petition. K.K. Ummer Farook also filed O.P. No. 33834 of 2001 before the High Court praying for direction to convey the property being the highest bidder in the second tender and the same was dismissed as infructous by the High Court vide judgment dated January 22, 2002. Against the said judgment, K.K. Ummer Farook filed C. A. No. 3451 of 2003 before this court. It is not in dispute that while ordering notice in the S. L. P. (C) No 7072 of 2002 (C. A. No. 3446 of 2003) filed by the KFC even on April 12, 2002, this court stayed the execution of the decree for specific performance which shows that the land and building and all accessories are with the KFC and the same position continues even today. 12. We have already concluded that the decree for specific performance granted by the High Court cannot be sustained. We also observed in the earlier part of our judgment that though the KFC has initiated proceedings under section 29 of the Act, admittedly, the State has not framed Rules or guidelines in the form of executive instruct....