Mahesh Bhagwati, J. - (1.) The crucial legal questions which arise for consideration in this appeal is as to whether the application filed under Sec. 31(1) of the State Financial Corporation Act, 1951 (for short the Act) is a plaint and whether the provisions of Limitation Act are applicable to it?
(2.) This question has emerged in the following circumstances (i)Respondents Nos. 2 and 3 after availing loan facility from the Appellant (for short RFC) purchased a Ashoka Leyland Bus Model 1981 bearing No. RNB 2607. Respondents Nos. 4 and 5 executed a deed of guarantee. The Respondent No. 4 also submitted an affidavit with regard to his house situated at Jaipur mentioning therein that he will not transfer his house till the loan is repaid. The liability of the guarantors is coextensive with the principal debtor. (ii)Loan amounting to Rs. 2,35,000/ - was to be paid by the Respondents. When the principal debtor did not make the payment, the notice under Sec. 30 of the S.F.C. Act was issued. Thereafter, the Bus No. 2607 was taken in possession on 20.7.1989 and was auctioned on 24.7.1990 and an amount of Rs. 52,000/ - was received in auction and after adjusting the same a sum of Rs. 3,68,722/ - remained due for which the information was given to the Respondents that the amount was not paid therefore, the application was submitted by the RFC. The court below dismissed he said application observing that the application is not within limitation and while dismissing the application the learned trial court has held that the cause of action has accrued on 22.6.1988 which is the date of notice.
(3.) Sec. 31(1) of the Act gives power to the Financial Corporation to enforce claims by simply moving the District Judge by means of the petition and Sec. 32 of the Act lays down the prompt procedure to be followed by the said judge. Sec. 32 has been enacted by way of speedy remedy.;