Court : Kerala
Reported in : AIR1998Ker205; [2000]101CompCas117(Ker)
..... state financial corporation on taking over possession under section 29 of the state financial corporations act, the delhi high court has observed as follows: 'in my view, in the taking over of the possession under section 29 of the state financial corporations act, the owner always retains the right of ownership of the property does not pass on to thefinancial corporation, but it is only for certain purposes of affecting recovery of its dues by the sale and to remove any impediments in their way that the statute by a deeming provision has granted to the financial corporation powers ..... ranganathan (1955) 25 comp cas 344 : (air 1955 sc 604), taking into consideration the provisions of section 29 of the state financial corporations act, 1951, and the facts and circumstances of the present case, i hold that the corporation was justified in taking over possession of the assets of the company, during the pendency of the winding up proceedings, without ..... filed by the 4th respondent it is contended that the state financial corporations act, 1951 is a special statute enacted for the purpose of constituting the state level financial corporation and thereby to augment industrialisation by extending financial assistance to certain industrial concerns and the companies act is a general statute dealing with the law relating to the companies and certain associations and therefore, the state financial corporations act being a special statute will prevail over the provisions of the companies act. .....
Tag this Judgment!Court : Kerala
Reported in : AIR1999Ker213; [2000]101CompCas486(Ker)
..... a default in the repayment of loan, the appellant proceeded against the owners of the land under sections 31 and 32 of the state financial corporation act, 1951 before the district court, kozhikode and obtained an order in their favour in o.p. no. ..... no. 87/69 before the district court, kozhikode under section 31 of the state financial corporations act for recovery of the amount due to ..... sc 1765 has laid down that under section 31(1) of the state financial corporation act, a special provision has been made for enforcement of the claims by the financial ..... for reference, herein sections 31(1) and 32(8) of the state financial corporation act can ..... 87/69. that proceeding was taken under the state financial corporations act wherein there was no provision to implead any one other ..... context, it is also pertinent to refer to the law laid down by the supreme court and also the principle laid down by this court under the provisions of the state financial corporation ..... in an application filed under section 31(1) of the state financial corporation act, an injunction restraining the respondent can be moved from transferring or removing the machinery or ..... done. the principle laid down here is the inherent power should not be invoked by the court in order to save the wrong doer, though the application under order xxi, rule 90 was allowed on the ground of fraud ..... set aside the sale, it is not a ground with reference to which the court should presume the existence of any inherent power to remedy the wrong .....
Tag this Judgment!Court : Kerala
Reported in : [1995]82CompCas1(Ker)
..... 5 of 1993 the learned single judge held that under section 29 of the state financial corporations act, 1951, the first respondent (kerala financial corporation) has the right to sell the industrial concern, its machinery and equipment in one lot and the landed property with the building separately. ..... sub-section (5) states that in a case where the financial corporation has invoked the power under sub-section (1) it becomes the owner of the concern and it can sue or be sued in the name of the concern. ..... there is no merit in the above contention as section 29 of the act docs not place any embargo on the power of the financial corporation while exercising its power under the section. ..... in such a situation, this section gives ample power to the financial corporation not only to take over the management or possession or both of the industrial concern but also the right to transfer by way of lease or sale to realise the amount due from the industrial concern. ..... another contention of the appellant is that section 529a of the companies act overrides the provisions contained under section 46b of the state financial corporations act and so the first respondent cannot be allowed to exercise its power under section 29 of the state financial corporations act. .....
Tag this Judgment!Court : Kerala
Reported in : [2006]132CompCas347(Ker)
..... doubtless some of the restrictions placed on state financial corporations exercising their powers under section 29 of the state financial corporations act, as prescribed in mahesh chandra v. u.p. ..... it is axiomatic that the statutory powers vested in the state financial corporation under the state financial corporations act, must be exercised bona fide. ..... : air1995sc1632 , and said that in the matter of sale under section 29, the state financial corporation must act in accordance with the statute and must not act unfairly, i.e. ..... this was purported to be in exercise of powers under section 21(3) of the kerala state co-operative agricultural development bank act, 1984 (act 20 of 1984) (hereinafter referred to as 'act 20 of 1984'). ..... since reliance has been placed by the bank on section 12(2) of the kerala state co-operative agricultural development bank act, the provision could be extracted hereinbelow :(2) notwithstanding anything contained in any law for the time being in force, a gehan created or mortgage or hypothecation executed in favour of the agricultural development bank or a primary bank shall take precedence ..... the order passed was to the following effect :whereas no application with deposit has been made under subsection (1) of section 21 of the said act and whereas the sales officer has duly applied to make an order confirming the sale, in exercise of powers conferred on me under sub-section (3) of section 21 of the said act. .....
Tag this Judgment!Court : Kerala
Reported in : [1993]76CompCas271(Ker)
..... the state financial corporations act, 1951 ( hereinafter called 'the corporations act' for the sake of brevity), provides for taking action under section 29, namely, to take over the management or possession or both of the industrial concern and it also provides for taking action in conformity with section 31 by moving an application before the district judge. ..... he points out that even without resorting to section 32g there is ample statutory power for the state to proceed to recover the amount due to the corporation by applying the provisions of the kerala revenue recovery act. ..... 851/79 and the power of the state government to issue the same under section 71, the court observed at page 590 as follows :'... ..... the guidelines for the exercise of this power are thus found in the object and purpose of the act and in the various provisions including section .24 of the act. ..... if the act is within legislative competence or otherwise valid, the notification promulgated in exercise of the powers vested in the state government under the act is not open to attack as lacking in legislative competence. ..... in exercise of its power under section 71, s.r.o. ..... 851/79) issued by the state government, in exercise of the powers vested in it under section 71 of the act, as lacking in legislative competence. .....
Tag this Judgment!Court : Kerala
Reported in : [1991]71CompCas428(Ker)
..... the petitioner, kerala financial corporation, initiated action under sections 29, 30 and 31 of the state financial corporations act, 1951, and sought recovery of the principal and interest due from the respondent (appellant herein) on account of a loan of rs. ..... . we hold that the: petitioner in state financial corporations act petition no ..... . for these reasons, we set aside the order passed by the courtbelow dated october 10, 1983, in state financial corporations actpetition no ..... . reading these clauses together, we have absolutely no doubt in our mind that the financial corporation was, incompetent to invoke clauses 7 and 29 of exhibit a-1 and in charging a higher rate of interest on the appellant, since the loan, was advanced to the appellant earlier to exhibits b-7 and b-9, in this view, exhibit b-10 circular sent by the corporation to the appellant intimating that, with effect from october 4, 1977, the appellant should pay a higher rate of interest is ineffective and unauthorised ..... . exhibit b-5 is issued by the kerala financial corporation entitled the 'technocrats assistance scheme rules' and clause 6 states as follows :'6 ..... . exhibit b-4 is the booklet issued by the kerala financial corporation regarding its functioning ..... we are primarily concerned with the relevant clauses in exhibit a-1, agreement entered into between the appellant and the financial corporation. .....
Tag this Judgment!Court : Kerala
Reported in : [1997]88CompCas104(Ker)
..... in considering whether the sick industrial companies (special provisions) act, 1985, would prevail over the state financial corporations act, 1951, in the light of section 46b of that act, the supreme court relied on the non obstante clause occurring in the sick industrial companies (special provisions) act, 1985, to hold that since that act was the later act, the non obstante clause therein would prevail over the non obstante clause in section 46b of the state financial corporations act. ..... the conclusion that could be drawn was that the collector under the act was a revenue court and once it was held that the collector was a revenue court, there was no difficulty in holding that section 52a of the act was enacted by the state legislature under entry 11-a, list iii of the seventh schedule to the constitution. ..... section 68 of the act which makes the provisions of the act applicable to recovery of certain other dues to the government, uses the expressions 'all sums due to the government' and 'all moneys due from any person' and section 71 of the act dealing with the power of the government to declare the act applicable to any institution speaks of a declaration that the provisions of the act shall be applicable to recovery of 'amounts due' from any person. ..... , and section 32 provides for removal of property from the apartments of women. .....
Tag this Judgment!Court : Kerala
Reported in : AIR1987Ker197
..... respondents in a proceeding initiated before the district judge by the kerala financial corporation under section 31 of the state financial corporations act, 1951 are the revision petitioners before me.2. ..... are inapplicable to a proceeding initiated under section 31 of the state financial corporations act, 1951. ..... . his power is delineated in sub-section (7) of section 32 of state financial corporations act ..... . a further power that is given to the district judge is to order the transfer of the management of industrial concern to the financial corporation or reject the claim made in this behalf.the question is whether the district judge has got the power when he is exercising his jurisdiction under section 32 of the state financial corporations act to direct a third party to contribute or indemnify the respondents in an application under section 31 of state financial corporations act exercising power under order viiia of the civil p.c.7 ..... part of its business for one or more of the following reliefs namely : -- (a) for an order for the sale of property pledged, mortgaged' hypothecated or assigned to the (financial corporation) as security for the loan or advance; or (b) for transferring the management of the industrial concern to the financial corporation; or (c) for an ad interim injunction restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the board, where such .....
Tag this Judgment!Court : Kerala
Reported in : AIR1988Ker330
..... the validity of section 29 of the state financial corporations act, 1951 (for short, the act) under the following ..... the objects and reasons and section 3(2) of the act it is clear that the financial corporation is a responsible body vested with the power to discharge the various functions under the act. ..... state owned financial corporation is presumed to exercise its power and discharge its functionshonestly and for purposes of the act ..... of whimsical exercise of power by a financial corporation cannot be presumed by ..... (3) the financial corporation shall have the same rights and powers with respect to goods manufactured or produced wholly or partly from goods forming part of the security held by it as it had with respect ..... reliefs, namely : -- (a) for an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the financial corporation as security for the loan or advance; or (aa) for enforcing the liability of any surety; or (b) for transferring the management of the industrial concern to the financial corporation; or (c) for an ad interim injunction restraining the industrial concern from transferring or removing its machinery or planter equipment from the premises of the industrial concern without the permission of the board, where ..... (2) any transfer of property made by the financial corporation, in exercise of its powers under sub-section (1), shall vest in the transferee all rights in or to the property transferred as if the transfer had been made by the .....
Tag this Judgment!Court : Kerala
Reported in : [2007]136CompCas446(Ker); 2006(2)KLT394
..... standing counsel on the otherhand contended that the decision of the supreme court should be confined to the facts of that case, and by virtue of notification sro 851/79 issued under section 71 of the rr act, read with s.32g of the state financial corporations act, 1951, hereinafter called the 'sfc act', recovery can be initiated and continued against the petitioner under the rr act. 2. ..... (2) the provisions of this act or the rules made thereunder shall be in addition to, and not in derogation of, the industrial finance corporation act, 1948 (15 of 1948), the state financial corporations act, 1951 (63 of 1951), the unit trust of india act, 1963 (52 of 1963), the industrial reconstruction bank of india act, 1984 (62 of 1984), the sick industrial companies (special provisions) act, 1985 (1 of 1986) and the small industries development bank of india act, 1989(39 of 1989). ..... in fact the supreme court in andhra pradesh state financial corporations' case reported in : [1994]1scr857 , considered and recognised a situation wherein financial institutions enjoy powers for recovery under two statutes. ..... therefore what has to be examined is whether the impugned recovery against the petitioner under the rr act can be traced to the powers and privileges conferred on the financial institutions under the sfc act. ..... power of government to declare the act applicable to any institution. .....
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