2012 (10) TMI 370

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.... P.7 under Section 29 of the State Financial Corporation Act, 1951 (in short, "the Act") for sale of unit of the petitioner-company being illegal, arbitrary and against the provisions of Punjab Industrial Incentive Code 1992 (for brevity, "the Code"). Prayer has also been made to direct the respondents to waive penal interest from the date of possession and interest and penal interest to the extent of subsidy sanctioned in May 1995 but disbursed in September 1997 and also to return the possession of the unit alongwith machinery and articles. 2. Briefly, the facts as narrated in the petition may be noticed. The petitioner is a private Limited company and is registered under the Companies Act, 1956. It set up a unit for the manufacturing o....

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.... petitioner, respondent No.3-Corporation issued a notice dated 20.10.1997 (Annexure P.7) to it to make payment of Rs. 33.43 lacs as principle amount and Rs. 27.07 lacs as interest and expenses by 8.11.1997. The petitioner further asserts that it has paid a sum of Rs. 36.86 lacs to the Punjab Financial Corporation and Rs.12.71 lacs to the PSIDC and the default in repayment is only due to compulsions of the market whereby it has been compelled to sell the gas cylinder even below the manufacturing cost due to heavy market recession. The petitioner made a detailed representation dated 8.11.1997 in this regard. After the issuance of legal notice dated 15.7.2012, Annexure P.12, respondent No.3 invited the petitioner to participate in the sale ....