Bhag Singh vs Haryana Financial Corporation and Others

Sanjay Kishan Kaul, C.J.—De hors niceties, the only aspect on which the petitioner is liable to succeed is that the respondent-Corporation sought to invoke the power u/s 29 of the State Financial Corporation Act, 1951 (for short "said Act") qua the land of the petitioner, who is a guarantor and in terms of the judgment of the Hon''ble Supreme Court in Karnataka State Financial Corporation Vs. N. Narasimahaiah and Others, , the same is not permissible. Relying on the judgment of the Hon''ble Supreme Court, the Full Bench of this Court in Shiv Charan Singh Versus Haryana State Industrial & Infrastructure Development Corporation Limited and another (CWP No. 7446 of 2011), decided on 9.1.2012 has also opined likewise. Result of the aforesaid is that the endeavour of the respondent-Corporation and the action taken in pursuance of Section 29 of the said Act is quashed, however, leaving it open to the respondent-Corporation to proceed u/s 31 or 32-G of the said Act in accordance with law. Learned counsel for respondent No. 1-Corporation assures that in view of the aforesaid, the payment made by respondent No. 2 will be refunded within a maximum period of one month from today.

Petition is accordingly disposed of.