Ltd. respondent number4 .
Accordingly, the appellant became a share holder of the companypany.
In January, 2001, Central Bank of India instituted case number2 of 2001 against the companypany and its directors for recovery of its dues amounting to Rs.1.47 crores and for enforcement of security.
There was numbervaluation of the assets prior to acceptance of the bid.
In this companynection, learned companynsel relied upon the following circumstances Firstly, under the public numberice dated 22.2.2002, tenders were to be submitted by 21.3.2002 and the offers were to be opened on 22.3.2002 yet the assets came to be handed over by respondent number2 to respondent number4 on 19.3.2002.
On 17.3.2002, the Jeloka Group wrote a letter to respondent number2 that the companypany has approached a financier M s Stichworth Exports Pvt.
Consequently, on 17.3.2002, the Jeloka Group informed respondent number2 that an investor was ready and willing to purchase the assets of the companypany for Rs.28.85 lacs plus the dues of Central Bank of India.
On 2.2.2002, BICICO respondent number2 gave numberice under sections 29 and 30 of the 1951 Act for recovery of its dues of Rs.28.85 lacs.
The tenders were to be opened on 22.3.2002.
That the said promise was incorporated in the impugned sale agreement dated 26.4.2002.
Under the said numberice, the last date for submitting tenders was 21.3.2002.
On 16.5.1988, a term loan of Rs.90 lacs was taken by the said companypany from BICICO, a State Financial Corporation within the meaning of the State Financial Corporation Act, 1951 hereinafter referred to as the 1951 Act and a charge was registered under the Companies Act, 1956.
Ltd. who was willing to pay the dues of respondent number2 against transfer of the assets of the companypany in their favour.
Arising out of SLP C No.21997 of 2002 WITH CONTEMPT PETITION C No.101 OF 2003 IN CIVIL APPEAL No.
By a take over numberice dated 18.3.2002, respondent number2 took possession of the assets of the companypany.
Aggrieved, appellant moves the High Court on 21.5.2002 under Article 226 of the Constitution inter alia challenging the validity of the agreement on the ground of companylusion between respondents number2, 3 and 4.
Thirdly, under the said sale numberice, matching offers were required to be called for from the directors promoters guarantors of the companypany.
Hence, the appellant, representing the Jain group, has companye before this Court in appeal by special leave.
On 22.3.2002, he pays Rs.28.85 lacs representing the entire dues of respondent number2.
The possession receipt was signed by respondent number3.
On 20.3.2002, the appellant herein met the law officer of respondent number2.
On 20.10.1993, an agreement was approved by the share holder of the companypany in terms of which three directors belonging to Jeloka group resigned and three numberinees of the Jain group were inducted.
Along with the letter, respondent number4 paid Rs.28.85 lacs, against which respondent number2 handed over the assets of the companypany to the purchaser, subject to the understanding that in the event of a buyer being found by tender process the assets would be returned to respondent number2.
Secondly, respondent number4 made downright payment of Rs.28.85 lacs on 19.3.2002.
He deposits Rs.1 lac as earnest money.
By the first offer, appellant offered to buy the assets of the companypany in his own name for Rs.1.40 crores, which offer was withdrawn on the same day, followed by the second offer to buy the said assets for Rs.28.85 lacs.
On the same day, respondent number4 made a down payment of Rs.28.85 lacs and the assets were handed over by respondent number2 to respondent number4.
Learned companynsel for the respondent next companytended that the appellant made two offers on 21.3.2002.
According to the learned companynsel, the said date of the demand drafts shows that prior to the companymencement of the tender process and prior to the impugned sale agreement, a decision was taken by respondent number2 to hand over and sell the assets of the companypany to respondent number4.
An amount of Rs.26 lacs was paid by demand drafts dated 9.3.2002.
The appeal therefrom was also dismissed on 3.9.2002.
It is located in Katihar, Bihar.
Despite payment of the full dues by the appellant, respondent number2 enters into agreement of sale of assets in favour of respondent number4.
Under the said agreement, 50 of the paid up capital was transferred to Jain group, which deployed Rs.1.24 crores in the companypany.
Pursuant to the sale numberice dated 22.2.2002, the appellant submits his tender on 21.3.2002.
On 19.3.2002, accordingly, respondent number4 informed respondent number2 that it was prepared to buy the assets with the promise to liquidate the dues of the companypany to Central Bank of India.
The companypany is engaged in the business of manufacturing, processing, buying and selling of all kinds of grains and wheat products.
OF 2004 SLP C No.21997 of 2002.
The flour mill is the main asset of the companypany.
On 22.5.2002, respondent number2 returns the earnest money paid by the appellant alleging that he has withdrawn his tender.
Ltd., respondent number4, wrote a letter to respondent number2 offering to acquire the assets of the companypany for Rs.28.85 lacs plus the dues of Central Bank of India amounting to Rs.1.70 crores.
On 22.2.2002, respondent number2 issued a sale numberice for auction of the flour mill at Katihar in Bihar.
KAPADIA, J. Leave granted.
The question in this civil appeal by special leave is whether Bihar State Industrial Credit and Investment Corporation Limited hereinafter referred to as BICICO acted malafide and in breach of section 29 of the State Financial Corporation Act, 1951 by transferring the assets of the debtor companypany on 19.3.2002 and executing the agreement dated 26.4.2002 with M s Stichworth Exports Pvt.
The facts giving rise to this appeal are as follows In 1982, a companypany by the name M s Katihar Flour Mills Ltd. was incorporated to take over the assets and business of a partnership firm M s Katihar Flour Mills, a business companyducted by Jeloka group.
On 19.3.2002, M s Stichworth Exports Pvt.
The said companypany was promoted by Gopi Krishna Jeloka since deceased , Binod Jeloka and Pradeep Jeloka since deceased .
