Rajiv Sahai Endlaw, J.

1. The question falling for adjudication in the present petition is, whether after the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Small Industries Development Bank of India (SIDBI) constituted under the Small Industries Development Bank of India Act, 1989 is, in case of default of repayment of loan, precluded from proceeding under Section 38 of the SIDBI Act and is required to necessarily proceed under the SARFAESI Act only.

2. It is not in dispute that the Petitioner had availed of loan / financial assistance from the Respondent SIDBI and the Respondent SIDBI on 7th December, 2009 recalled the loan and called upon the Petitioner to pay the amount of ` 3,41,67,167/- then claimed to be due; it is also not in dispute that the Respondent SIDBI vide its notice dated 24th May, 2010 impugned in this petition invoked the provisions of Section 38 of the SIDBI Act. The said Section 38 of the SIDBI Act empowers SIDBI to take over the management or possession or both of an industrial concern in the small-scale sector which is in default of a liability to SIDBI under an agree