Section 31 remedy under the State Financial Corporations Act does not extend to a surety's mortgaged property.

Sections 25, 29, 31 and 32 of the State Financial Corporations Act, 1951 were construed together to hold that the special summary remedy under Section 31 is confined to enforcement against the industrial concern and its property. Because Section 32 contemplates notice, interim orders and final relief only in relation to the borrower concern, and contains no provision extending that procedure to a third-party surety, a surety who mortgaged property for the loan could not be proceeded against before the District Judge under Section 31. The Corporation's recourse against such mortgaged property lay through ordinary civil remedies under the Transfer of Property Act and the Civil Procedure Code.

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Issues: Whether a surety who had mortgaged his property to secure a loan advanced to an industrial concern could be proceeded against before the District Judge under Section 31 of the State Financial Corporations Act, 1951.

Analysis: Sections 25, 29, 31 and 32 of the Act were read together. The scheme of Section 31 provides a special and summary remedy for enforcement of claims against the industrial concern, while Section 32 limits the District Judge's interim and final orders to the borrower industrial concern and its property. The absence of any provision for notice to a surety, and the restriction of attachment and sale to the industrial concern's property, showed that the special procedure was not intended to extend to a third-party surety. The Corporation's general right to proceed against mortgaged property under Section 29 remained available, but only through ordinary remedies under the Transfer of Property Act and the Civil Procedure Code.

Conclusion: A surety mortgaging his property could not be proceeded against under Section 31 of the State Financial Corporations Act, 1951; the Corporation had to pursue ordinary civil remedies against such property.

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