Disposed

M/S Tibrewala Inds. Pvt. Ltd. v. Haryana Financial Corpn. and Ors.

Punjab & Haryana HC19 Dec 2011CWP/2742/2006

Case brief

AI extract

What is this about?

This bench, following a Division Bench decision, dismissed an appeal and connected writ petitions challenging the inapplicability of RBI one-time settlement guidelines to State Financial Corporations. The court formulated a compromise for depositing dues.

What did the court decide?

Directed the Haryana Financial Corporation to consider applications from appellant/petitioners for one-time settlement under its prevailing policy within 30 days if dues are found payable.

M/S Tibrewala Inds. Pvt. Ltd. Vs Haryana… — Company and Corporate | Punjab & Haryana HC (2011)

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LPA No. 1119 of 2011

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IN THE PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH

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LPA No. 1119 of 2011 (O&M) Date of Decision: 19.12.2011

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M/s Labh Singh Des Raj

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……… Appellant

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Versus

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The State of Haryana & others

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………… Respondents

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CORAM : Hon’ble Mr. Justice M.M. Kumar Hon’ble Mr. Justice Rajiv Narain Raina

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Present: Mr. Jagdish Manchanda, Advocate for the appellant in LPA No. 1119 of 2011.

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Mr. Vivek Verma, Advocate for the petitioner in CWP No. 2742 of 2006.

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Mr. Kamal Sehgal, Addl. A.G., Haryana.

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To be referred to the reporters or not?

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Whether the judgment should be reported in the digest.

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M.M. KUMAR, J.

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The instant appeal and three writ petitions* have raised a common question of law namely 'whether the guidelines issued by the Reserve Bank of India for one time settlement would be applicable to the State Financial Corporation established under the State Financial Corporation Act, 1951'. A Division Bench of this Court in the case of Lal Chand Katia v. Punjab Financial Corporation 2008(1) ISJ (Banking) 74 has categorically dealt with this term and has decided that such R.B.I. guidelines would not be applicable to the State Financial Corporation. The learned Single Judge while following the view of the Division Bench has accordingly dismissed

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LPA No. 1119 of 2011

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the writ petition and has refused to issue a direction to the Haryana Financial Corporation. The Division Bench of this Court in Lal Chand Katia case (supra) held that R.B.I. Guidelines regarding one time settlement are not binding on the State Financial Corporations. Accordingly, we conclude that the learned Single Judge has taken the correct view, which cannot be interfered with by a co-ordinate Bench. The connected writ petitions since involve the same issue must follow suit.

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However, Mr. Jagdish Manchanda learned counsel for the appellant as well as learned counsel for the writ petitioners have sought a direction to the Corporation that their cases may be considered as per the prevailing policy devised by the Haryana Financial Corporation. The learned counsel has also stated that the appellant as well as the writ petitioner(s) are prepared to deposit the principal amount as well as interest which need to be determined in accordance with the prevailing policy. If any, such application is filed by the appellant and petitioner(s) within 30 days from today then the same may be considered by the respondent-Corporation in accordance with its prevailing policy. If any dues are found payable to the Corporation then the same be paid on or before 31.3.2012.

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The appeal as well as the writ petitions stand disposed of in

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the above terms.

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A copy of this order be placed on record of each concerned file.

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(M.M. KUMAR) Judge

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(RAJIV NARAIN RAINA) JUDGE

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19.12.2011 ‘sp’

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LPA No. 1119 of 2011

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*Sr.No.*	*LPA/ CWP No.* *&year*	*Title*
1	LPA No. 1119 of 2011	M/s Lab Singh Des Raj vs. The State of Haryana & others
2	CWP No. 1609 of 2006	M/s Devidayal Castings Private Ltd. vs. Haryana Financial Corporation & another
3	CWP No. 2742 of 2006	M/s Tibrewala Industries Private Ltd. vs. Haryana Financial Corporation & others
4	CWP No. 3448 of 2006	Dr. Subhash Chander Pasrija, Proprietor of M/s Jai Balaji Hospital Clinic vs Haryana Financial Corporation

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(M.M. KUMAR) Judge

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(RAJIV NARAIN RAINA) JUDGE

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19.12.2011 ‘sp’

M/S Tibrewala Inds. Pvt. Ltd. v. Haryana Financial Corpn. and Ors.

Case brief

What is this about?

What did the court decide?

M/S Tibrewala Inds. Pvt. Ltd. v. Haryana Financial Corpn. and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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