Nagendra Prasad Singh, J. -

The petitioner in this writ application has challenged the legality of the exercise of the power by the respondent Bihar State Financial Corporation (hereinafter referred to as 'the Corporation') under section 29 of the State Financial Corporation Act, 1951 (hereinafter referred to as the Act).

2. The petitioner owns and possesses an industry in the name and style 'Klshanganj Re-Rolling Mills' (hereinafter referred to as the 'Mill'). In connection with the said Mill, the petitioner was, granted a loan of Rs.4,75,000/- by the aforesaid Corporation sometime in the year 1971. The petitioner executed a mortgage deed in favour of the said Corporation on 30.11.1971. A copy of the said mortgage deed is Annexure-A to the counter affidavit filed on behalf of the respondent Corporation. As there was default in the re-payment of the instalments of the loan advanced to the petitioner the respondent Corporation served a notice dated 20.8.1976 calling upon the petitioner to discharge the full liability amounting to Rs. 4, 75,400/-, failing which the mortgage security would be advertised for sale' by public auction and shall be sold in accordance with section