Summary: A.P. State Financial Corporation tried to get back a loan from Kabs Fabrics Pvt. Ltd. but had problems because they missed court dates. The court decided not to undo a dismissal order, putting the corporation in a difficult situation.
A.P. State Financial Corporation, a major lender for small and medium businesses, loaned Rs. 43,00,000 to Kabs Fabrics Pvt. Ltd. The loan was for making Terri Towels in Jukal village. The loan was backed by land, buildings, and personal promises from the company's leaders, including A Sridhar Reddy, M Sobhan, A Vinod Kumar, Smt G Anitha, and St E Bhagya.
Things went wrong when Kabs Fabrics, led by A Sridhar Reddy and others, didn't pay back the loan. Even after warnings from the corporation, the company didn't pay, leading to their assets being taken in 1995. The machines and property were sold, but a huge amount of Rs. 2,55,08,467 was still unpaid as of March 2006.
"The machinery was sold for Rs.9,00,000 in February 1997 while land and buildings were sold for Rs.13,08,500 on 28.03.2005."
The corporation went to court to get the money back, but the case was thrown out because they didn't show up. They tried to get the case reopened, saying there was a mix-up with the court dates. However, they couldn't prove this since they didn't show the important letter that explained the date mistake.
Judges Moushumi Bhattacharya and Gadi Praveen Kumar decided that the corporation wasn't careful enough. They pointed out that the law doesn't support carelessness and rejected the request to reopen the case.
"Law is not a refuge for the negligent... it denies protection to those who sleep over their entitlements."
The court's decision shows how important it is to be careful and attentive in legal cases. The corporation's failure to prove their reasons led to the case being dismissed, leaving them without any help from the court.
