COMMENTS
If any
property is mortgaged under section 32, debtor can take the help of Order
34 Rule 5 of the Code of Civil Procedure and
get the mortgaged redeemed; Maganlal v. M/s. Jaiswal Industries, Air 1989 SC 2113. The District Judge has full power to deliver the possession of property sold in auction; S.A.N. Engineering and Locomotive Company Ltd. Bangalore Ltd. v. Gujarat State Financial Corporation, AIR 1989 Bom 236. The court has full powers to pass any order as far as auction sale is concerned. If an order is made by a District Judge, it is made by the Court of District Judge; M/s. Hotel Natraj v. Karnataka State Financial Corporation, AIR 1989 Kant 90. When
the Financial has complied with the requisite provisions of this section
to enforce the securities mortgaged/pledged
The District Court exercising jurisdiction under this section has certain inherent powers by virtue of the relevant provisions of Code of Civil Procedure to meet the ends of justice or to prevent abuse of the process of the court. In exercise of such inherent powers, the court can entertain an application for setting aside of an ex-parte order, provided that it is satisfied as to existence of sufficient cause for non-appearance on the date fixed by the applicants; Rakesh Sugar Tail Factory, Mohammadabad v. u.p.Financial Corporation, Kanpur, AIR 1984 All 23. 2[Power
of Financial Corporation to appoint directors or administrators of an industrial
concern when management is taken
When the management of an industrial concern is taken over by the Financial Corporation, the Financial Corporation may, by order notified in the Official Gazette, appoint as many persons as it thinks fit,-------------------------------------------------------------------------------------------------------------in any case in which the industrial concern is a company as defined in the Companies Act, 1956 (1 of 1956) to be directors of that industrial concern; orThe power to appoint directors or administrators under this section includes the power to appoint any individual, firm or company to be the managing agent or manager of the industrial concern on such terms and conditions as the Financial Corporation may think fit. 1. Ins. by Act 77 of 1972, sec. 21. 2. Ins. by Act 56 of 1956, sec. 17. 3. Ins. by Act 6 of 1962, sec. 16. ------------------------------------------------------------------------------------------------------------ Effect of notified order under section 32A.- On the issue of a notified order under section 32A.Powers and duties of directors and administrators.-in any case in which the industrial concern is a company as defined in the Companies Act, 1956 (1 of 1956) all persons holding office as directors of the industrial concern and in any other case, all persons holding any office having the powers of superintendence, director and control of the industrial concern, immediately before the issue of the notified order, shall be deemed to have vacated their offices as such; Subject to the control of the Financial Corporation, the directors, or as the case may be, the administrators appointed under section 32A, shall take such steps as may be necessary for the purpose of efficiently managing the business of the industrial concern and shall exercise such powers and have such duties as may be prescribed.No right to compensation for termination of contract of managing agent, managing director, etc.- Notwithstanding anything to the contrary contained in any contract or in any law for the time being in force, no managing agent, managing director or any other director or a manager or any person in charge of management of an industrial concern shall be entitled to any compensation for the loss of office or for the premature termination under this Act of any contract of management entered into by him with such concern.Application of Act 1 of 1956.- Where the management of an industrial concern, being a company as defined in the Companies Act, 1956 ( 1 of 1956), is taken over by the Financial Corporation, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such concern,-Restriction on filing of suits for dissolution, etc., of an industrial concern not being a company when its management is takenit shall not be lawful for the shareholders of such concern or any other person to nominate or appoint any person to be a director of the concern;Subject to the provisions contained in sub-section (1) and to the other provisions contained in this Act and subject to such other exceptions, restrictions and limitations, if any, as the Central Government in consultation with the State Government may, by notification in the Official Gazette, specify in this behalf, the Companies Act. 1956 (1 of 1956) shall continue to apply to such concern in the same manner as it applied thereto before the issue of the notified order under section 32A. over.- Where the management of an industrial concern not being a company as defined in the Companies Act. 1956(1 of 1956) is taken over by the Financial Corporation, no suit or proceedings for dissolution or for partition shall, in so far as it relates to that industrial concern, lie in any court or before any tribunal or other authority except with the consent of the Financial Corporation.1[Recovery of amounts due to the Financial Corporation as an arrear of land revenue.-Where any amount is due to the Financial Corporation in respect of any accommodation granted by it to any industrial concern, the Financial Corporation or any person authorized by it in writing in this behalf, may without prejudice to any other mode of recovery, make an application to the State Government for the recovery of the amount due to it, and if the State Government or such authority, as that Government may specify in this behalf, is satisfied, after following such procedure as may be prescribed, that any amount is so due, it may issue a certificate for that amount to the Collector, and the Collector shall proceed to recover that amount in the same manner as an arrear of land revenue.] |