31(1)(a)(aa) of the Act was filed along with LA No.i___, for
interim reiief of temporary injunction.
7. Keeping in view the rival contentions it
record of the writ petition, which Ihave«perluseciithel:point”‘1
for consideration is;
“whether the District Jirdge has. . t;’iej”_:jtirfl’st1iction
under Section 31(1)(a)(aia,iy'”o.f’tl7e Act,-.._to_.,i7ass an
order of temporary._ir:j_ur:ction the property of
a surety in favour ofthe Fi_na§Vncia[.’C?1Jij0–oration?”
8. provides for special
provision ____ e<o:f__orce'mVe'i'it" claims by financial
co rp 0 ratio n_. « ' ' r: 5
"31i '*S_'pecv:idl for enforcement of claims
by Findnoiai' Corporation —
-V:/._;i’1);b_A–.tW31ere anfindustria} concern, in breach of any
_yagvIff3Cirier1t,___makes any default in repayment of any
}.oan°’..ori.l’aci”vance or any instalment thereof or in
A-__mee’ting.– its obiigations in relation to any guarantee
given by the Corporation or otherwise fails to comply
V ” the terms of its agreement with the Financial
florporation or where the Financial Corporation
requires an industrial concern to make immediate
repayment of any loan or adva ce under Section 30
/’
{2} An application under sub–section {1} shall state the
nature and extent of the liability of the industrial
concern to the Financial Corporation, the g.r.o’un’dl-ion” 3
which it is made and such other particulars as ‘A V’
prescribed.” V p
9. Section 32 of the Act
procedure in respect of the p’ro–c:e’eding.s befoVre._:th~e:”D’i’strict ”
Judge on the applications unpd-ei’–..”$ect-ion 3i;”–su.bE–section
(1–A) whereof reads as uh’d_er:”
“’32. [1–A}4.:When for the relief
mentioned iaa} of lsulb-secltion (1) of Section
31, J:1dgefl_~:.hall-issue a notice calling upon
the” to?s1’io\fi’;*.gjas,1se date to be specified in
notice 4lia.]_:.ii’l–ity “should not be enforced”.
10. ‘lFoir’vthe’V._plurp’o.sle of enforcing a liability of an
…IAndu:s’trig;liconcerri,’vth-ecorporation can take recourse both
and 31 of the Act. That apart, the right
ofdthle Corpxoirattion to file a suit or take recourse to the
it.provisions;.contained in Section 32-6 of the Act also exists.
Section 31 of the Act is a special provision.
with regard to the scope of Section 31, in KARNATAKA
k
/’
(-
E0
be adopted. Section 31 also provides for a relief against
a surety and not confined to the industriai conoern
alone. Sub–section (2) of Section 31 a1so…..:e_rejfsr’rd
industrial concern and not the surety. TlrielegisIa’tiv’e_’:’ H
intent, therefore, to our ;mind, “e.1ear’fi’and-V K”
unambigu ou s”.
(¢mDhé’sié “supplied, 153* men)’=–.. A ‘ V ‘V
12. Section 32 (1–A) down-V. orjocedure
when Clause (aa) of See_ti’:on .xSection 32
(4–A) empowers the A_.C_C>:’l_J:r.’E order the
enforcement cause is shown
on or before? oarties. In the event,
a aniiiinvestigation as provided
for “Section 32, a final order can
be passed inuterornsrof siubisection (7) thereof.
_yy13=f’r$«eéti._on 32-6 can be resorted to both against
the”Indus~t’rj’i:_aVi.i=uiconcern and also the Surety. The
‘.yCorpor’.at’io:n.V4c’an proceed against the Surety only in terms
“..fofiSecotion 31 & 32 of the Act. it
/”
., .
interlocutory orders like granting an interim order of
injunction. No express provision has been made’uriide’r’4
Section 31 or 32 of the Act conferring power onjthe ‘
Judge to pass an order of temporary’ ax
surety, pending disposal of the n’1ain_’_’la’opl:i’catio.n._u
District Judge has passed”l..,:the_ order V _oflv-,:te_:mporary
injunction against the p_.etitionVer–Vljy–.exercisingvguorisdiction
not vested in him. Thxusfihothet_ivrifiVg:uugiévedAV:Morder being one
withoutjurisdictigoin andiis’ii’iiie:g;ai,:’ C’
In the4rejsuifl”litiieéw-riot”~p,etiVti-onis allowed and the
impu g n ed Vlolrdielrf. is
No co.sts..
.. ….. ..