TIBREWAL, J. - (1.) -
(2.) THE question falls for decision in the present writ petition is: - "Whether an application for determination of debt/debts under Section 6 of the Rajasthan Relief of Agricultural Indebtedness Act, 1957 is maintainable in respect to a loan and advance given by the Rajasthan Financial Corporation under the provisions of the State Financial Corporation Act, 1951?" The necessary facts to understand the real controversy may be given: Respondent Chhotey Lal Meena, a member of Scheduled Tribe within S. 2A of the Rajasthan Relief of Agricultural Indebtedness Act, 1957 (for short 'Debt Relief Act') took a loan of Rs. 1,92,000/-, from the Corporation to purchase a truck for carrying on the business of transportation of goods. The requisite agreement/deed of hypothecation was executed by him on April 28, 1983 in. favour of the Corporation. Thereafter, he filed an application under S. 6 of the Debt Relief Act praying for the determination of his debts under the provisions of the Debt Relief Act. Before the Debt Relief Court he also moved an application for grant of temporary injunction to restrain the Corporation from taking possession of the truck and to auction the same for the recovery of the amount. This application was contested by the petitioner Corporation, amongst others on the ground that the Debt Relief Court had no jurisdiction even to entertain the application for determination of debts under S. 6 of the Debt Relief Act. According to the Corporation, the respondent had taken loan under the provisions of the State Financial Corporation Act, 1951 (hereinafter referred to as 'the Act') for the purchase of a truck for doing the business of transportation of goods and the provisions of the Act were applicable for the recovery of the loan amount or any part thereof, and the provisions of the Debt Relief Act could not be made applicable such transactions. The Debt Relief Court accepted the contention or the Corporation and held that it had no jurisdiction to entertain an application under S. 6 of the Debt Relief Act for determination of the debt in relation to the loan and advance given by the Corporation vide order dated March 12, 1991 (Annexure 3 ). However, on a revision preferred by the respondent Chhotey Lal Meena the District Judge took a contrary view and after setting aside the order of the Debt Relief Court remanded the case back to that Court vide order/judgment dated April 23, 1991. The Corporation has challenged the aforesaid order of District Judge under this petition under Articles 225 and 227 of the Constitution of India. The State Financial Corporation Act, 1951 is a Central Act enacted by the Parliament. No dispute is raised before me about the validity of this Act and the competence of Parliament to enact it, as it is covered under Entries 43 and 45 of List I in Schedule VII of the Constitution, which is known as 'Union list'. The Act was enacted to provide for the establishment of State Financial Corporations or joint Financial Corporations by the State Governments to provide finances to medium and small scale industrial concerns. S. 2(c) defines 'Industrial Concern' and a concern engaged or to be engaged in the transport of passengers or goods by-road or by water or by air is an industrial concern. S. 25 describes the business which Financial Corporations may transact. It may grant loans or advances to an industrial concern under clause (g) of sub-s. (1) of s. 25. S. 27 (1) empowers the Corporation, while entering into an arrangement under S. 25 with an industrial concern to impose such conditions as it may think necessary or expedient for protecting the interests of the Corporation and securing that the accommodation granted by it is put to the best use by the industrial concern. S. 29 of the Act speaks of right of the Corporation in case of default. It includes the right to take over the management or possession or both of the industrial concern, as well as the right to transfer by way of lease or sale and realise the property pledged, mortgaged, hypothecated or assigned to the Corporation. Then S. 30 contains power to call for repayment before agreed period. S. 31 contemplates the special provisions for enforcement of claims by the Corporation. It reads as under : - "31. Special provisions for enforcement of claims by Financial Corporation.-(1) Where an industrial concern, in breach of any agreement, makes any default in repayment of any loan or advance or any installment thereof (or in meeting its obligations in relation to any guarantee given by the Corporation) or otherwise fails to comply with the terms of its agreement with the Financial Corporation or where the Financial Corporation requires an industrial concern to make immediate repayment of any loan or advance under section 30 and the industrial concern fails to make repayment, (then, without prejudice to the provisions of section 29 of the Act and of section 69 of the Transfer of Property Act, 1882) any officer of the Financial Corporation, generally or specially authorised by the Board in this behalf, may apply to the District Judge within the limits of whose jurisdiction the industrial concern-carries on the whole or a substantial part of its business for one or more of the following reliefs namely : - (a) for an order for the sale of property pledged, mortgaged, hypothecated or assigned to the (Financial Corporation) as security for the loan or advance; or (b) for transferring the management of the industrial concern to the Financial Corporation; or (c) for an ad interim injunction restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the Board, where such removal is apprehended. (2) An application under sub-section (1) shall state the nature and extent of the liability of the industrial concern to the Financial Corporation, the ground on which it is made and such other particulars as may be prescribed." Then comes S. 32 which contemplates procedure before District Judge in respect of application under S. 31. This is the mode of recovery contemplated in the Act. S. 46-B has been inserted by the State Financial Corporations (Amendment) Act, 1976 which provides as under : - "46-B. Effect of Act on other laws : - The provisions of this Act and of any rules or orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the memorandum or articles of association of an industrial concern or in any other instrument having effect by virtue of any law other than this Act, but save as aforesaid, the provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being applicable to an industrial concern."
(3.) THE above discussions reveal that the State Financial Corporation Act, 1951 is a Parliamentary Legislation and is a self contained complete Code on a particular matter for which Parliament has exclusive power to legislate. THE Act deals entirely with distinct and separate matters and do not occupy the same field occupied by Debt Relief Act. It provides special provisions for determination and realisation of the loans and advances made by the Corporation to industrial concerns. In case of default in payment of any loan or advance or any instalment thereof by an industrial concern, the Corporation is competent to take over the management or possession or both of the industrial concern without any adjudication by or intervention of a judicial authority. It can also take over the right to transfer by way of lease or sale and realise the property pledged, mortgaged, hypothecated or assigned to the Corporation, and, any transfer of the property made by the Corporation, in exercise of its powers under Sub-s. (1) of S. 29 shall vest in the transferee all rights in or to the property transferred as if the transfer had been made by the owner of the property. Similarly, the Corporation shall have the same rights and powers with respect to goods manufactured or produced wholly or partly from the goods forming part of the security held by it as it had with respect to the original goods. THEn special provisions are provided under Ss. 31 and 32 for enforcement of claims by the Corporation and the procedure for the recovery of any amount by way of attachment and sale of the property of the industrial concern. Thus, the State Financial Act is a special Act and is intended for special purposes. Rajasthan Relief of Agriculture Indebtedness Act, 1957 on the other hand, is a State Legislation in terms of Entry 30 of List II of the VII Schedule (State List) which provides as under : - "30. Money-lending and money lenders; relief of agricultural indebtedness." The object of the enactment is stated to be to provide relief from indebtedness to landless agricultural labourers, rural artisans and small farmers in the State of Rajasthan. It is no doubt true that Debt Relief Act has a social object behind it. However, the State Financial Corporation deals with the matter of a different field relating to loans and advances to industrial concerns. Special provisions for the determination and realisation are provided under the Act and the Debt Relief Act cannot have a over-riding effect in relation to the loans and advances made under the provisions of the Act. If there was any creeping doubt in the matter, the same stands concluded by insertion of S. 46-B in the Act. The Debt Relief Act, therefore, can not curtail the powers which conferred under the provisions of the Rajasthan State Financial Corporation Act. It may be stated that the various entries in the three Lists contained in VII Schedule of the Constitution provide specific field of Legislation. They are designed to define and deal with the respective areas of legislative competent of the Union and the State Legislatures. The power to legislate is given by Article 246 of the Constitution and it reads : - "246(1) Notwithstanding anything in clauses (2) and (3) Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule (in this Constitution referred to as the "Union List" ). (2) Notwithstanding anything in Clause (3), Parliament, and, subject to Clause (1), the Legislature of any State...... also, have power to make laws with respect to any of the matters enumerated in List III in the Seventh Schedule (in this Constitution referred to as the "Union List" ). (3) Subject to clauses (1) and (2), the Legislature of any State.....has exclusive power to make laws for such State or any part thereof with respect to any of the matters enumerated in List II in the Seventh Schedule (in the Constitution, referred to as the "State List" ). (4) Parliament has power to make laws with respect to any matter for any part of the territory of India not included in a State notwithstanding that such matter is a matter enumerated in the State List." ;