Supreme Court affirms first charge on property, dismisses appeal on sale by financial corporation.

The Supreme Court upheld the High Court's decision regarding the sale of hypothecated property by Rajasthan Financial Corporation to Subramaniam Shastri, affirming the Corporation's first charge on the property. The Court dismissed the appeal, stating that the Corporation's remedy could only be invoked at the appropriate stage, and that the auction purchaser, not the Corporation, would be aggrieved by the sale. The decision regarding the Corporation's claim of first charge in relation to Central Excise dues was affirmed, and the appeal was declined.

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Issues:
1. Validity of the sale of hypothecated property by Rajasthan Financial Corporation under Section 29 of the State Financial Corporation Act, 1951.
2. Claim of first charge on the property by the Corporation in relation to Central Excise dues.
3. Dismissal of writ petition by the High Court.

Analysis:
The Supreme Court heard arguments from both parties regarding the sale of a property by Rajasthan Financial Corporation to Subramaniam Shastri due to a default by Sabhyata Plastics Pvt Ltd. The Corporation sold the property in a public auction and executed a conditional conveyance deed retaining the first charge on the property until all dues are paid. The issue arose when the Central Excise department attached the property for alleged dues, leading to a writ petition. The High Court dismissed the petition, stating that the auction purchaser, not the Corporation, would be aggrieved by the sale. Additionally, the High Court deemed the Corporation's claim of first charge premature, as enforcement would only occur upon property sale for Central Excise dues recovery.

Upon reviewing the conditional conveyance deed, the Supreme Court upheld the High Court's decision, finding it justified. The Court agreed with the High Court that the Corporation's remedy could only be invoked at the appropriate stage, addressing the appellant's concerns adequately. Consequently, the Supreme Court declined to interfere with the High Court's order and dismissed the appeal, affirming the decision regarding the sale of the hypothecated property and the Corporation's claim of first charge in relation to the Central Excise dues.

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