JUDGMENT

DESAI, J.:— This appeal by special leave raises a narrow but interesting question on the nature of proceedings under Ss. 31 and 32 of the State Financial Corporations Act, 1951 (Act for short) which has a direct impact on the question of court-fees to be paid on an application that may be made under S. 31 of the Act. The question arose in the context of the following facts :

2. The State of Gujarat set up the Gujarat State Financial Corporation (Corporation for short), the appellant herein, under S. 3 of the Act. The Corporation was set up inter alia for granting or guaranteeing the loans to be raised by industrial concerns either from scheduled banks or State Co-operative banks or those floated in the public market. The Corporation guaranteed numerous such loans, advanced to the industrial concerns in the State of Gujarat on certain terms and conditions agreed between the parties. When the industrial concern defaults in repayment of loan or fails to comply with the terms of the agreement the Corporation is entitled to make an application to the District Judge within the limits of whose jurisdiction the industrial concern carries on the whole or substantial part of its busi