2001 (2) TMI 988

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....filing of this petition lie in a narrow compass. They need mention in brief. 2.. There was a proprietory concern of one Shri Prabhudas Shah called M/s. Benson Pharmaceuticals. It had one industrial unit engaged in the business of manufacture of pharmaceutical goods at Industrial Estate at Sanwer Road, Indore. This concern had taken loan from MPFC for running this unit. It appears that since the concern, i.e., M/s. Benson Pharmaceuticals failed to repay the loan and hence MPFC invoked their powers conferred under section 29 of the State Financial Corporation Act, 1951 and advertised the aforesaid unit for sale on October 9, 1987. The petitioner submitted its tender for purchase of the defaulted unit. Eventually the petitioner was turned o....

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....ny benefit. This is what is contained in the order rejecting application of the petitioner:   4. It is against this rejection the petitioner has felt aggrieved and filed this petition. 5. The State by filing the return supported the impugned rejection and the reasoning contained therein. 6. Heard Shri P.M. Choudhary, learned counsel for the petitioners and Shri P. Verma, learned Government Advocate, for the respondents. 7. Learned counsel for the petitioner while attacking the impugned order (annexure P/20) argued that reasoning contained in the impugned order and that prevailed in rejection of petitioner's application was entirely perverse as also de hors to the very object in granting exemption. It was his submission that....

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....auction by MPFC. The petitioner was entirely a separate and altogether distinct legal entity which acquired the unit for their benefit. The sales tax/entry tax exemption is granted to a person who carries on some business activity on fulfilment of conditions stipulated for grant of exemption. Once the petitioner purchased the unit and became owner thereof on making payment to MPFC, they had become entitled to apply in their own rights to ask for the exemption for carrying on their business. It had to be therefore, considered on its own merit. 11.. In my opinion, therefore, the respondent Nos. 1 and 2 had to consider and decide the application dated April 20, 1990 and April 12, 1990 (annexure P/19) for grant of eligibility certificate ....