PATNA, India, Sept. 10 -- Patna High Court issued the following judgment on Aug. 13:

Heard learned counsel for the appellant and learned counsel for the respondent.

2. The appellant has filed the instant appeal against the judgment and order dated 6.3.2024 whereby the learned Single Judge was pleased to dispose of the writ application (CWJC no.3369 of 2011) directing the Bihar State Credit and Investment Corporation Limited ('BICICO' in short) to issue 'no dues' certificate in favour of the writ petitioner/respondent.

3. The case of the writ petitioner/respondent in brief is that the petitioner company was established in the year 1956 for manufacturing dairy products. With an object of reviving the company, a loan of Rs.56 lacs was applied for in the year 1980, however, only Rs.20 lacs was sanctioned. Not having been able to start production due to lack of adequate funds, the respondent was looking for ways to liquidate the loan when in the year 2006, BICICO came out with one time settlement scheme i.e. OTS Scheme, 2006. It is further case of the respondent that the OTS amount having been estimated by BICICO at Rs.23.52 lacs, the respondent deposited the sum of Rs.21.52 lacs and submitted that they had already deposited Rs.2 lacs at the time of OTS Scheme, 2004. As the amount of Rs.2 lacs deposited at the time of OTS Scheme, 2004 was not accepted by BICICO, as directed by them, the respondent deposited the sum of Rs.2 lacs on 16.10.2008.

4. It is submitted by learned counsel appearing for the respondent that inspite of having deposited the total amount under the OTS Scheme, 2006 as no dues certificate was not issued by BICICO inspite of demand by the respondent, the respondent filed CWJC no.3369 of 2011 which was allowed by a judgment dated 6.3.2024.

5. On the other hand, it is the case of the appellant/BICICO that it is not in dispute that a loan of Rs.20 lacs had been taken by the respondent who had defaulted in repayment of the same. Though it is true that the respondent applied under the OTS Scheme, 2006, however on perusal of the provisions of the scheme, it would transpire that along with other documents, the applicant/respondent herein was required to submit a certificate from DIC/IADA regarding the unit being non-commissioned/incomplete. The respondent not having provided the said certificate, the benefit of OTS Scheme, 2006 could not be given to the respondent and thus the no dues certificate was rightly not issued in the respondent's favour. It was submitted that the learned Single Judge erred in allowing the writ application and directing the BICICO to issue a no dues certificate in favour of the respondent. The instant appeal be allowed and the order of the learned Single Judge be set aside.

6. In response, it was submitted by learned counsel appearing for the respondent that so far as the requirement of furnishing of certificate from DIC (District Industries Centre) and IADA (Industrial Area Development Authority) are concerned, on one hand, the DIC does not give such certificate and further the IADA grants certificate only when the unit is running on the land allotted by the IADA. It is thus submitted that no error has been committed by the learned Single Judge in allowing the writ application. There is no merit in the instant appeal and the same be dismissed.

The rest of the document can be viewed at https://patnahighcourt.gov.in/viewjudgment/MyM0ODQjMjAyNCMxI04=-eM5eqHx--ak1--jA4=

Disclaimer: Curated by HT Syndication.