S.N.Jha, J.

1. By this application under Articles 226 and 227 of the Constitution of India the petitioners have prayed for quashing of Annexure-1 by which an advertisement under Sec.29 of the State Financial Corporation Act (hereinafter referred to as "the Act") was published calling offers for sale of mortgaged property of the petitioner-company and any subsequent action purported thereto. The petitioners have further prayed for restraining the Respondent ("Bihar State Financial Corporation") from selling the properties including the factory, which had been mortgaged with the Corporation.

2. The facts relevant for the disposal of this application, in short, are that petitioner No. 1 is a private limited company (hereinafter referred to as "the Company"), which was incorporated on 1st April, 1982 under the Companies Act, 1956. The object of the Company was to carry on business as manufactures, exporters, importers, buyers and sellers and dealers in all kinds of machineries and factory implements, and, in particular in diesel engines and electric motors etc.

3. The Respondent Corporation was set up under Sec.3 of the said Act, which is the instrumentality or a device of the