( 1 ) THE respondent M/s. Jayshree Industries took a loan from the appellant-Gujarat State Financial Corporation and pledged and hypothecated machinery and other properties with the Corporation as a security for the said loan. The amount was payable by instalments. As the respondent failed to pay the instalments as agreed the appellant-Corporation filed Miscellaneous Civil Application No. 113 of 1977 in the District Court at Rajkot under sec. 31 of the State Financial corporations Act 1951 (hereinafter to be referred to as the Act for enforcement of its claim by attachment and sale of the pledged and hypothecated properties of the opponent Jayshree Industries. The application was resisted by the responded. Pending the hearing of the said application the respondent gave an application. Ex. 42. requesting the District Judge to grant instalments. Another application Ex. 49 was also submitted to the learned District Judge raising a contention that the sale proclamation which was issued was illegal and may be canceled and a fresh sale proclamation may be issued. The applications were resisted by the Corporation. So far as the grant of instalments is concerned it was also