M/S. AMAR ALCOHOLI LTD. versus SICOM LTD. AND ANR.

M/S. AMAR ALCOHOLI LTD. versus SICOM LTD. AND ANR.

The respondent remains a financial corporation eligible to invoke Section 29 of the State Financial Corporation Act, 1951 for recovery of debt, notwithstanding reduction of State Government shareholding to 49%, since it was established by the State Government and duly notified under Section 46.

Parties
Appellant: Amar Alcoholi Ltd.; Respondent No.1: SICOM Ltd.; Respondent No.2: Karan Distilleries Pvt. Ltd.; Intervener: State of Maharashtra
Jurisdiction
India
Judgment Date
08 November 2005
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
Appeal dismissed
Legal Topics
State Financial Corporation Act, Recovery of Debts, Auction of Mortgaged Properties
Banking and Finance State Financial Corporation Act Recovery of Debts Auction of Mortgaged Properties

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Parties

Amar Alcoholi Ltd.

Appellant

SICOM Ltd.

Respondent No.1

Karan Distilleries Pvt. Ltd.

Respondent No.2

State of Maharashtra

Intervener

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether SICOM Ltd. remains a financial corporation under the State Financial Corporation Act, 1951 despite reduction of State's shareholding to 49%
  2. 2 Whether SICOM can invoke Section 29 for recovery of debt after reduction in State holding

Ratio Decidendi

The respondent remains a financial corporation eligible to invoke Section 29 of the State Financial Corporation Act, 1951 for recovery of debt, notwithstanding reduction of State Government shareholding to 49%, since it was established by the State Government and duly notified under Section 46.

Court Disposition

Appeal dismissed

Orders

  • SICOM to consider application by appellant for refund of any excess auction proceeds and to decide within two months; if any excess remains, to return it forthwith.
  • Appellant permitted to withdraw Rs.25 lakhs deposited during interim order.