N.N.MITHAL, J. - (1.) U. P. Financial Corporation being aggrieved by an order passed by the Civil Judge, Ghaziabad restraining it from realising its money otherwise than by proceeding under Sec. 31 of the State Financial Corporations Act have come up to this Court.
(2.) Briefly stated facts are that under an agreement between the parties a sum of Rs. 6,51,000/- was advanced by way of loan to the plaintiff on 30-6-83. Subsequently in 1984 an additional loan of Rs. 1,23,000/- was also advanced to the plaintiff. It is admitted by the plaintiff that the entire amount has not been repaid as per the agreement on account of some financial stringency. A notice of demand to pay up the arrears within ten days was sent to the plaintiff on 28-9-89 that in the event of failure to pay the amount the Corporation will take proceeding under Sec. 29 of the Act. According to the plaint the defendant Corporation wanted to take possession over the plaintiff's industrial concern forcibly without any right; hence the suit was filed for injunction to restrain it from doing so. An application for ad interim relief on the same line was also made. From the impugned order it appears that the appellant Corporation neither raised any objection nor any one appeared to contest the application.
(3.) The submission accepted by the Court below is that the Corporation can only take steps to take possession after obtaining an order under Sec. 31 from the Court. In support of this stand the trial Court has relied upon a Full Bench decision of the Court in Munna Lal Gupta v. U. P. Financial Corporation, AIR 1975 All 416.;