: 1 : IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION (LDG.) NO.519 OF 2009 Janakalyan Sahakari Bank Ltd. & Anr. ....Petitioners V/s. State of Maharashtra & Ors. ....Respondents Mr.Birendra Saraf with Mr.Ashish Kamat and Mr.Nikhil Rajani i/b M/s.V. Deshpande & Co. for the Petitioners. Mr.Milind More, A.G.P. for Respondent No.1. Mr.Nitin Deshpande with Mr.Khasbardar for Respondent Nos.2 and 3. CORAM : S.J. VAZIFDAR, J. DATED : 18TH MARCH, 2009. P.C. : 1. The Petitioners obtained a recovery certificate on 29.3.2006 for a sum of about Rs.13,50,00,000/-. The amounts due today are around Rs.16.00 crores. 2. The only question in this Writ Petition is whether the bidders for the properties which are to be sold in execution of the recovery certificate ought to be permitted to take inspection thereof or not. 3. There is no dispute that the property is liable to be sold in execution of the recovery : 2 : certificate. There is no dispute that normally the prospective bidders are entitled to inspection of such property. The only objection raised is in regarding the manner in which the sale is proposed to be conducted. An earlier application in this regard was dismissed. It is stated on behalf of Respondent Nos.2 and 3 that another application objecting to the manner of sale has been filed. These objections will be decided by the Special Recovery Officer. In any event, even during the pendency of these objections, there is no warrant for staying inspection of the properties. 4. The above aspect arises for consideration on account of the contentions on behalf of Respondent Nos.2 and 3 that in two of the properties certain defence orders are being executed. The defence orders in respect of Respondent No.2 contains clause 14 which reads as under :- "14. Secrecy : "14. Secrecy : "14. Secrecy : i) The contractor shall ensure that all persons employed in any work in connection with this contract including its sub-contractors have full knowledge of the official secret Act and any regulation framed thereunder and shall not be disclosed any information in respect of this contract to person or persons not concerned therewith. ii). Any information obtained in the course of execution of the contract by contractor, its employees or agents or any person so employed as to any matter whatsoever,or indirectly of use to any : 3 : enemy of India must be treated as SECRET and shall not at any time and under any circumstances communicated to any person or persons. iii). Any breach of the aforesaid conditions shall be in addition to any civil or criminal remedy open to the purchaser entitle to cancel the contract and to purchase or authorise to purchase the store at the risk and cost of the contractor in accordance with clause 9 of schedule "B". In the event of cancellation, the parts manufactured in the execution of the contract may be taken over at his sole discretion by the purchase at such prices as he consider fair and reasonable and the decision of the purchaser as to such price shall be final and binding on the contract." 5. It was stated that a similar contract has also been executed by Respondent No.3. Respondent No.3 agrees to furnish a copy thereof to the Petitioners’ advocate on or before 21.3.2009. 6. By a letter dated 4.2.2009, Respondent No.2 informed the Recovery Officer that he should give a specific written order undertaking the entire responsibility for breach of secrecy before anybody is allowed in the premises of the plant involved in executing the defence order. What is suggested in this letter in fact is that any inspection would be contrary to the defence order and would involve a breach of secrecy. 7. Respondent Nos.2 and 3 cannot be permitted to : 4 : stall a sale in this manner. The defence contract is being executed by Respondent Nos.2 and 3. They are bound to ensure that there is no breach of the defence contract or any threat to security. It is therefore, the responsibility of Respondent Nos.2 and 3 to take all steps necessary during the inspection to ensure that there is no breach of secrecy or security. It is the responsibility of Respondent Nos.2 and 3 to inform the ordinance factory or any other concerned government officials regarding the proposed inspection. Such authorities would also be entitled to take all steps necessary to ensure that there is no breach of secrecy clause and there is no danger to the security in any manner whatsoever in the course of the inspection. The Special Recovery Officer will also take such steps as may be necessary to ensure the same and to consider the representations, if any, of the ordinance factory or any of the authorities. If necessary and if the authorities deemed it proper, it is also open to the Special Recovery Officer to consider whether any process manufacturing or otherwise is temporarily shut down for the purpose of ensuring inspection without prejudicing to the secrecy clause and security. 8. Respondent Nos.2 and 3 shall serve a copy of this order on the ordinance factory on or before : 5 : 23.3.2009. The Petitioners shall also be at liberty to serve a copy of this order on the ordinance factory. 9. The meeting for inspection shall be held tomorrow - 19.3.2009 as scheduled and at that meeting the inspection of the two factory premises shall be postponed to 30.3.2009. Accordingly the meeting for the auction shall be convened as scheduled on 2.4.2009 and on that day postponed to 9.4.2009. 10. The learned counsel appearing on behalf of Respondent Nos.2 and 3 states that they have no objection to the inspection being taken of the residential flat. Accordingly the inspection and sale of the residential flat shall continue as scheduled. 11. The confirmation of the sale of the premises shall be subject to any orders that may be passed on the objections which are stated to have been filed. 12. The Writ Petition is accordingly disposed of. . All parties to act on an ordinary copy of this order duly authenticated by the Associate/Private Secretary of this Court.