The Industrial Finance Corporation Act, 1948
28. Rights of Corporation in case of default.
- Where any industrial concern which is under a liability to the Corporation under an agreement makes any default in repayment 1*[of any loan or advance or any instalment thereof] 2*[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 Corporation, the Corporation shall have the 3*[right to take over the management, or possession, or both, of the concern], as well as the 4*[right to transfer by way of lease or sale] and realise the property pledged, mortgaged, hypothecated or assigned to the Corporation.
- Ins. by Act 43 of 1957, s. 9.
- Ins. by Act 74 of 1972, s. 16.
- Subs. by s. 16, ibid., for certain words.
- Subs. by Act 28 of 1955, s. 19, for "right to sell".
- Any transfer of property made by the Corporation in exercise of its powers 1*** under sub-section (1) shall vest in the transferee all rights in or to the property transferred 2*[as if the transfer] had been made by the owner of the property.
- The Corporation shall have the same rights and powers with respect to goods manufactured or produced wholly or partly FROM goods forming part of security held by it, as it had with respect to the original goods.
3A 3*[4*[Where any action has been taken against an industrial concern] under the provisions of sub-section (1), all costs, charges and expenses 5*[which , in the opinion of the Corporation, have been properly incurred by it] 4*[as incidental thereto] shall be recoverable FROM the industrial concern, and the money which is received by it 6*** shall, in the absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and, secondly, in discharge of the debt due to the Corporation, and the residue of the money so received shall be paid to the person entitled thereto.]
- Where the Corporation takes over the management 7*[or possession] of a concern
under the provisions of sub-section (1), it shall be deemed to be the owner of
such concern for purposes of suits by or against such concern and shall sue and
be sued in the name 8***<
of the concern.