TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the right of the Financial Corporation under section 29 of the State Financial Corporations Act extends to property mortgaged by a guarantor.
Analysis: The provision was read as authorising the Corporation to take over possession of both the industrial concern and the property pledged, mortgaged, hypothecated or assigned to it. The reasoning drew a distinction between the speedy remedy under section 31 and the broader power under section 29, and held that the latter is not confined to the borrower's property alone. Since the guarantor's property had been mortgaged to secure the loan, there was no statutory or contractual restriction preventing the Corporation from proceeding against it. The Court also held that the Corporation was free to choose which mortgaged property to proceed against first.
Conclusion: Section 29 of the State Financial Corporations Act applies to mortgaged property of a guarantor as well as of the borrower, and the writ petition challenging the proposed action failed.
Ratio Decidendi: The power under section 29 to take possession of mortgaged property is not confined to the borrower's assets and extends to property mortgaged by a guarantor, subject to the terms of the statute and the security arrangement.
TaxTMI 
