matters is whether
Karnataka State Industrial Investment and Development Corporation (for
short, `KSIIDC') acted in a bona fide manner in sale of the properties ... short, `the Act').
The appeals have been preferred by KSIIDC as well as M/S Vinpack
Investments Pvt Ltd., the purchaser (for short `Vinpack
filed by Karnataka State Industrial Investment and Development Corporation Ltd. ('KSIIDC') Ltd.
1.1 OSA NO.7 of 1998 is filed by Raj Kotak ... that the process of sale of the assets of the company by KSIIDC and the purchase by BPL is proper and does not call
above and relied upon by Sri Gopal Hegde, learned counsel for the KSIIDC, the appellant, need to be distinguished firstly on the ground that ... doubt true that on July 29, 1994, the appellant-KSIIDC had taken over possession of the assets of the company under liquidation, acting under Section
present appellant M/s. Karnataka State Industrial Investment and Development Corporation Limited (KSIIDC), Respondent No. 2 Karnataka State Financial Corporation (KSFC), Respondent No. 4 Industrial ... orders passed by BIFR and AAIFR.
4. In the meantime, the appellant KSIIDC, acting under Section 29 of the State Financial Corporations
Karnataka State Industrial Investment and Development Corporation
Limited, Bangalore ("KSIIDC", for short) The said KSIIDC is a financial corporation established under Section ... short). The assessee is stated to be owing to the KSIIDC in respect of the loan for which it had mortgaged/hypothecated the plant
Raveendran
ORDER
R.V. Raveendran, J.
1. The second Respondent Corporation (KSIIDC) had taken over the assets of its Borrower M/s Ramgopal Paper Mills ... there was keen competition, the consortium of creditors led by KSIIDC (consisting of KSIIDC, KSFC, Corporation Bank and State Bank of Mysore) arranged
partly out of the funds contributed by the shareholders. The dues of KSIIDC are secured by personal guarantee of the second respondent and his parents ... mortgage of their immovable property. KSIIDC stipulated among other conditions that any unsecured loan availed from the promoters or shareholders of the Company shall
banks and the Karnataka State Industrial Investment and Development Corporation Ltd. The KSIIDC by invoking Section 29 of the State Financial
Corporations Act, 1951 took ... Deccan Herald and Economic Times on 1-11-1994: The KSIIDC accepted the highest tender and after negotiation the sale price was finalised
Much prior to this, Karnataka State Industrial Investment and Development Corporation Ltd. (KSIIDC), a secured creditor, had made an application seeking permission to stand outside ... loan advanced by it in favour of the company. M/s. KSIIDC, a State owned financial corporation, within the meaning of this expression under
Karnataka State Industrial Investment and Development
Corporation Ltd., (hereafter 'KSIIDC') having entered
appearance through its counsel resisted these appeals making
submission in justification ... warranted, the arguable insignificant lacunae therein,
notwithstanding.
3. Brief facts:
(a) The KSIIDC is a lending agency which answers the
description of State Financial Corporation
