Akil Abdul Hamid Kureshi, J.

1. These petitions involve the question of applicability of the Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('Securitization Act' for short) to the borrowers and guarantors of the Gujarat State Financial Corporation constituted under the State Financial Corporation Act, 1951 ('the SFC Act' for short). Since facts are slightly different, we may briefly record them as arising in each petition. In Special Civil Application No. 9704 of 2013 virtually no facts have been stated. However, material facts are available from the affidavit-in-reply dated 13.08.2013 filed on behalf of the respondent No. 2, the Gujarat State Financial Corporation. Such facts are that:-

(i) The petitioners are the Directors of the company, M/s. P. Natubhai Tea Company Private Limited by name. The State Financial Corporation sanctioned a term loan of Rs. 40 lacs in favour of the said company in the year 2000. A sum of Rs. 35.83 lacs was actually disbursed in the early part of the year 2001. A further sum of Rs. 1.39 lac was disbursed on 31.03.2001. It appears that a further sum of Rs. 10.93 lacs was disbursed in favour of the said company on 06.08.2001. For obtaining such loans, the company had, in addition to offering its land, building and machinery as primary security, also offered certain collateral securities of immovable properties. Shri Nilesh Kotak and Prafull Kotak alongwith late Shri Natwarlal Kotak had executed personal guarantees and also offered collateral securities.

(ii) When the company defaulted in making payments, the Corporation initiated steps under the SFC Act. Possession of the primary security was taken on 05.04.2005 and the same was also sold on 06.03.2010. Since much of the debt with accumulated interest was still not satisfied, the Corporation also proceeded against the collateral security. Possession thereof was taken under Section 29 of the SFC Act. However, as per the affidavit, the action was abandoned to take recourse under the Securitization Act. Notice under Section 13(2) of the Securitization Act was issued on 05.02.2013. Though the petitioner has challenged the action taken by the Corporation under the Securitization Act, notice under Section 13(2) of the Act is not produced on record. We, however, have on record a further notice issued under Section 13(4) of the Securitization Act dated 26.04.2013 which records that there were outstanding dues of Rs. 2,64,95,870/- from the company towards the Gujarat State Financial Corporation. The Corporation thereafter issued a public advertisement on 18.05.2013 inviting offers from the prospective buyers. However, before any further steps could be taken, the petitioner No. 3 who was not a guarantor filed a Civil Suit No. 48 of 2013 before the Civil Court at Dhrangadhra seeking a declaration that, the properties offered by way of collateral security are joint family properties and that, the same, therefore, could not be sold to realize the dues of the company. Sometime thereafter, the present petition came to be filed challenging various statutory provisions and the action taken by the Gujarat State Financial Corporation under the Securitization Act. In such petition, the petitioners have challenged the vires of the SFC Act and prayed that the Act be declared as unconstitutional. According to the petitioners, the Act suffers from lack of legislative competence of the Union Legislature. The petitioners have also challenged the vires of Section 4A of the Companies Act, 1956 alongwith Section 2(1)(m)(i) of the Securitization Act. The petitioners have challenged a notification dated 17.10.1995, again without producing a copy, issued by the Government of India in exercise of powers under Sub-Section (2) of Section 4A of the Companies Act, 1956 so far as it declares the Gujarat State Financial Corporation as one of the Public Financial Institutions. The petitioners have also challenged the action taken