( 1 ) THIS appeal arises out of an order made by the District Judge Baroda in a proceeding under sub-sec. (1) of sec. 31 of the State Financial Corporation Act 1951 (hereinafter referred to as the Corporation Act) for the sale of the Property of the appellants specified in the schedule attached to the application. The order is challenged on several grounds. We shall deal with each of those grounds separately in the course of this judgment. Ground No. 1: in view of sub-sec. (4) of sec. 3 and sec. 7 of the Gujarat Public Moneys (Recovery of Dues) Act 1979 (hereinafter referred to as the Recovery Act) the proceeding under sec. 31 of the Corporation Act could not have been continued and no order for the sale of the property in question could have been passed in Such a proceeding

( 2 ) SEC. 3 sub-sec. (1) of the Recovery Act in so far as it is relevant for the present purposes provides that where any person is a party to any agreement relating to a loan advance or grant given to him by the Corporation (the definition of which term covers the respondent-Corporation) by way of financial assistance and such person makes any default in payment of the loan or advance or any ins