JUDGMENT

A. S. NAIDU, J. — The Orissa State Financial Corporation being aggrieved by an order dated 12.12.1997 passed by District Judge, Cuttack in a proceeding initiated under Section 31 of the State Financial Corporations Act, 1951 (hereinafter referred to as ‘the Act’) has preferred this Miscellaneous Appeal invoking jurisdic¬tion under Section 32 (9) of the Act.

2. The Orissa State Financial Corporation (hereinafter referred to ‘OSFC) filed an application under Section 31 of the Act for a direction to sell the properties attached by it for realisation of its outstanding dues towards loan and also to permit it to enforce the personal liability of the guarantor for realisation of the amount due along with agreed interest till realisation. The District Judge by the impugned order dismissed the Misc. Case against the loanee (opposite party-respondent No.1) observing that the loanee cannot be held personally liable for payment of the outstanding dues, but the hypothecated proper¬ty can be attached and allowed the OSFC to proceed against re¬spondent No. 2, the surety, to realise the loan amount along with agreed interest till realisation. The OSFC was also permitted to sell the prop