BHASKARAN NAMBIAR, J. :- The petitioner challenges the validity of Section 29 of the State Financial Corporations Act, 1951 (for short, the Act) under the following circumstances. He obtained a loan of Rs. 99,752/- from the Kerala Financial Corporation for purchasing machinery for a mini industry in the Mini Industrial Estate at Koduvayur, by hypothecating his properties and executing an agreement on 7-9-1977. He, however, defaulted in the payment of the instalments due to the Corporation and the Corporation therefore demanded by a written notice the payment of the balance amounts with interest and also warned the petitioner that on his failure to comply with the demand, possession of the premises would be taken over by the Corporation and assets disposed of under the provisions of the Act. The petitioner did not pay the arrears demanded; nor did he show his willingness even to pay any portion of the debt. Instead he replied that the steps may be dropped for a further period of six months and requested that his case for granting interest rebate, refixation of the loan amount and re-schedule of the instalment may be considered afresh. When he did not make any remittance as