Jawahar Lal Gupta, J. - (1.) Are the remedies under sections 29 and 31 of the State Financial Corporations Act, 1951, mutually exclusive ? This is the primary question that arises for consideration in this appeal. The learned single Judge had taken the view that once the Corporation had made a choice and restored to the remedy under section 31 it cannot 'fall back on remedy under section 29 of the Act. . .'. Reliance in support of this view has been placed on the judgment of a Full Bench of Andhra Pradesh High Court in K. Subba Reddy v. Andhra Pradesh State Financial Corporation and others, AIR 1987 AP 119 , and the judgment of a Division Bench of the Orissa High Court in Gulf Fishing and Co. v. Orissa State Financial Corporation and another, AIR 1987 Ori 119.
(2.) At the hearing of this appeal, Mr. Daya Sarup Nehra, learned counsel for the respondent, has pointed out that the view of the Full Bench of the Andhra Pradesh High Court has been endorsed by a Division Bench of this court in Hetnyog Hotels (P) Ltd. v .The Delhi Financial Corporation, (1997) 3 Comp LJ 255 (P&H) : (1993) 1 Recent Revenue Reports 256.
(3.) After hearing learned counsel for the parties, we are prima facie of the view that the remedy under section 31 of the Act being 'without prejudice to the provision of section 29 ...' the view taken by Full Bench of the Andhra Pradesh High Court in K. Subba Reddy's case, AIR 1987 AP 119, supra, which has been endorsed by a Division Bench of this court in Hemyog Hotel's case, (1997) 3 Comp LJ 255 (P&H) : (1993) 1 Recent Revenue Reports 256, supra, does not contain the correct statement of law. Even otherwise, we are satisfied that the question involved in this case is of consider- able importance. It is likely to arise in a number of cases. It has serious implication regarding the right of the Corporation to recover the loans from industrial concerns. An authoritative pronouncement regarding the provisions of the Act especially those contained in section 29 and 31, is necessary. We are, thus, of the view that the matter deserves to be examined by a Full Bench of this court.;