HARYANA FINANCIAL CORPORATION vs M/S. JAGDAMBA OIL MILLS

The case involves a challenge by Haryana Financial Corporation against a High Court judgment granting a permanent injunction to M/S Jagdamba Oil Mills. The respondents sought to restrain the Corporation from auctioning their unit which had been seized following a default in the repayment of a sanctioned loan of Rs. 7,48,000. The core legal issue pertains to the Corporation's right to seize and auction mortgaged assets in accordance with the loan agreement and mortgage deed upon the borrower's default.