- (1.) Civil Appeal No. 1021 of 1971, by special leave is directed against the judgment of the Bombay High Court, dated February 16, 1970, dismissing First Appeal No.152 of 1970 summarily. The judgment of the High Court reads: "No appeal lies. Even on merits we do not find any substance. Dismissed"
(2.) This First Appeal was purported to be filed under sub-section (9) of Section 32 of the State Financial Corporation Act (63 of 1951) - hereinafter referred to as the Act - from the judgment and order dated January 16, 1970, passed by the Gopal U. Rijhsinghani; Joint Judge, Thana, in Miscellaneous Application No.111 of 1969. Two points arise in this appeal; (1) Whether an appeal lies to the High Court under Section 32 (9) of the Act (2) if the appeal lay, was it a case for a summary dismissal
(3.) In order to appreciate these points it is necessary to set out a few facts. One of the appellants, Asnew Drums Private Ltd., hereinafter referred to as the appellant company, made an application to the Bombay (now Maharahstra) State Financial Corporation for a loan of Rupees 10 lakhs for installing and erecting machinery plant and other fixtures for its drum reconditioning factory at Kalve, Thana District, Bombay. The appellant Company executed a registered deed of mortgage by way of security, pledging all lands buildings, machineries etc. On August 10, 1965, the Finance Corporation filed Miscellaneous Application No.75 of 1965 against the appellant company and two of its Directors under Section 31 of the Act for sale of company properties mortgaged and for issue of interim injunction restraining the company from dealing with these properties.;