JUDGMENT

Ahmadi, J.

1. Special leave granted.

2. The short but interesting question which arises for determination in this appeal is whether in a case where an industrial concern makes any default in repayment of any loan or advance or any instalment thereof or otherwise fails to meet its obligations under the terms of any agreement with the Financial Corporation, such as the respondent herein, can the latter take recourse to Sections 29 and/or 31 of the State Financial Corporations Act, 1951 (hereinafter called the 1951 Act) notwithstanding the bar of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter called the 1985 Ac!)? In order to answer the aforesaid question it is necessary to bear in mind the provisions of the aforesaid two statutes.

3. The 1951 Act was enacted to provide for the establishment of State Financial Corporations. Section 3 empowers the State Government to establish a State Financial Corporation as a body corporate with an authorised capital of such sum as may be fixed by the State Government in this behalf. Section 9 provides that the general superintendence, direction and management of the affairs and business of the Financ