- (1.) The crucial legal questions which arise for consideration in this appeal is as to whether the application filed under section 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) Respondent No. 1 after availing loan facility from the appellant (for short RFC) purchased a jeep. Respondents Nos. 2 and 3 executed a deed of guarantee and had mortgaged their houses. The liability of the guarantors is co-extensive with the principal debtor. (ii) Loan amounting to Rs. 91,000/- was to be repaid in 58 monthly instalments of Rs. 2200/each. When the principal debtor did not make the payment the RFC took the vehicle into possession after serving notice under section 29 of the Act and realised Rs. 47.100 from the auction of the said vehicle. For enforcing the liability of the sureties an application under section 31(1) of the Act was filed by the RFC. The court below dismissed the said application observing that it was barred by limitation and without jurisdiction. Against the said order, present action for filing this appeal has been resorted to.
(3.) Section 31(1) of the Act gives power to the Financial Corporation to enforce its claims by simply moving the District Judge by means of the petition and section 32 of the Act lays down the prompt procedure to be followed by the said Judge. Section 32 has been enacted by way of speedy remedy.;