Bihar State Financial Corpn vs M/S. Chhotanagpur Minerals And Ors

The Supreme Court addressed the legality of the sale of mortgaged property under the State Financial Corporations Act, 1951, specifically Sections 29 and 30. The Court held that the appellant Corporation failed to adequately inform the respondent about the sale of the factory, which constituted a breach of duty to protect the interests of the mortgagor. Consequently, the Court ruled in favor of the respondent, allowing for damages due to the wrongful sale of the property without proper notice.