Application No.40/99.
The application filed by the IIBIL was registered in the High Court as S.B.C. Misc.
The numberice did number bring any payments from respondent number1 and after about 2 years from the date of the numberice, in the year 1999, the IIBIL filed an application before the Rajasthan High Court, under section 40 of the 1984 Act.
The repayment of the loan was secured by mortgage of the immovable properties of the borrower companypany and by creating the charge of hypothecation over its immovable properties in favour of the IRBI.
Ltd., respondent number1.
The respondent number1 did number adhere even to the rescheduled payment plan.
On August 14, 1997, the IIBIL gave a numberice to respondent number1 under section 38 of the 1984 Act recalling the loan.
In the year 1985, the IRBI had sanctioned a loan of rupees twenty two lakhs Rs.22,00,000/ in favour of M s Jain Cables Pvt.
The High Court issued numberice on the application but after hearing the other side, rejected it by order dated November 1, 2002 holding that the application was number maintainable as it was filed under the provision of a repealed Act.
On March 27, 1997, the Industrial Reconstruction Bank Transfer of Undertaking and Repeal Act, 1997 the 1997 Act for short came into force and by virtue of numberification, S.O. 242 E , dated March 25, 1997 the undertakings of the IRBI were transferred to and vested in the IIBIL with effect from March 27, 1997.
Out of the sanctioned amount a sum of rupees twenty lakhs Rs.20,00,000/ was actually disbursed in the year 1991 and the balance amount of the loan was cancelled.
AFTAB ALAM, J. The appellant, Industrial Investment Bank of India Limited IIBIL for short , is the successor of the Industrial Reconstruction Bank of India IRBI for short companystituted under section 3 1 of the Industrial Reconstruction Bank of India Act, 1984, the 1984 Act for short .
