THE HON’BLE SRI JUSTICE GODA RAGHURAM WRIT PETITION No.19702 of 2002 ORDER: Challengng the invalidation of the sale of the unit and assets of Everest Computers Private Limited (for short ‘the Company’) by the 1st respondent-A.P. State Finance Corporation, on the ground that the said transaction is in transgression of the decision of the Supreme Court in Maheshchandra Vs. Regional Manager, U.P. State Financial Corporation[1], this writ petition is filed. This is the third round of a futile litigation. The Company applied for and was sanctioned a term loan amount of Rs.34,00,000/-. There is some assertion that the entire amount was not released and only a part of it, a contention that has no bearing on the issues that fall for determination in this writ petition. Suffice it to notice that the Company defaulted in payment of instalments of the term loan amount availed. When the unit was seized in 1991, the petitioners filed W.P.No.20739 of 1992. The writ petition was disposed of directing the 1st respondent to receive the stipulated instalments paid by the petitioners. Admittedly, the petitioners failed to repay the amount due as per the instalments directed by this Court in W.P.No.20739 of 1992. The 1st respondent thereupon got initiated proceedings under the Andhra Pradesh Revenue Recovery Act, 1864, by a notice dated 20.09.2002, issued by the Special Deputy Tahsildar, demanding payment of arrears of Rs.1,45,65,804/-. This was challenged in W.P.No.18665 of 2002. During the pendency of this writ petition, at the instance of the 1st respondent, the notice, dated 20.09.2002, was withdrawn and proceedings were initiated under the provisions of the State Finance Corporation Act, 1951 (for short ‘the Act’) for sale of the unit. The assets of the Company were eventually sold and it is that sale that is challenged in the writ petition without even an averment as to any antecedent proceedings or even the date on which the sale occurred. The petitioners assert no knowledge whatsoever of the date and circumstances surrounding the sale. The petitioners have made no effort even to administer interrogatories or seek discoveries from the respondents as to the date and circumstances of the sale to assert any particular illegality in the conduct of the sale, be that as it may. M/s. Sri Lakshmi Venkateswara Enterprises was impleaded as the 3rd respondent, at its instance, by the orders of this Court, dated 05.12.2003. Thereafter, the petitioners sought amendment of the relief to seek invalidation of the sale of the Company’s assets in favour of the 3rd respondent on the ground that the same was mala fide and arbitrary. The Corporation in the counter-affidavit states that out of the sanctioned term loan amount of Rs.34,00,000/-, the Company availed a loan of Rs.23.56 laks during December, 1987 to March, 1989. In view of the defaults by the then management of the Company, the petitioners sought transfer of the assets of the Company in their favour which was agreed to by the answering respondent and thereafter, the petitioners stepped into to the management of the Company. The petitioners were inducted as Directors of the Company on 06.12.1989 by which date, an amount of Rs.26,05,267/- was due to the answering respondent on the loan liability. As neither the Company nor the petitioners complied neither with the instalments directed by this Court in W.P.No.18665 of 2002 nor with the repeated notices issued by the answering respondent, the liability including the interest liability of the Company mounted. After due compliance of processes, the assets of the Company were sold in exercise of the powers under Section 29 of the Act and the 3rd respondent in the writ petition had purchased the property for Rs.16,00,000/- and was inducted into possession on 30.03.2002. The 3rd respondent has filed a counter-affidavit stating that the 1st respondent-Corporation issued a notification, dated 31.12.2001, in Telugu Daily notifying to sell all the assets of the Company, exercising powers under Section 29 of the Act. Responding to the notification, the 3rd respondent submitted its bid initially for Rs.13.5 lakhs. Thereafter, the 1st respondent–Corporation invited the 3rd respondent for negotiations, whereat the 3rd respondent increased the bid amount to Rs.16,00,000/-. As stipulated and within the time stipulated by the 1st respondent-Corporation, the amount of Rs.16,00,000/- was paid by the 3rd respondent-50% on 26.03.2002 and balance amount on 06.09.2002. It is further pleaded that on 30.03.2002, possession of the plant and machinery along with the site and buildings were handed over to the 3rd respondent. The 3rd respondent further pleads that as the plant and machinery was not in use for over 13 to 14 years, the entire machinery was useless and was sold as scrap. From the pleadings in the writ petition and in view of the averments in the counter-affidavits of the 1st and 3rd respondents, no case is made out for interference as the petitioners do not raise or establish any legal grounds for invalidating the sale of the plant, machinery and lands belonging to the Company in favour of the 3rd respondent. The writ petition is accordingly dismissed. No costs. ___________________ GODA RAGHURAM, J Dt:20.01.2011 kdl/ndr [1] AIR 1993 935