Karnataka State Financial Corporation vs N. Narasimahaiah & Ors

The Supreme Court examined the interpretation of Section 29 and Section 31 of the State Financial Corporations Act, 1951, in the context of the powers of the Karnataka State Financial Corporation to take possession of properties mortgaged by guarantors. The Court held that the High Court erred in quashing the orders under Section 29, affirming that the Corporation has the authority to take possession of properties provided as collateral security by guarantors, independent of the industrial concern's status. The judgment of the Karnataka High Court was set aside, allowing the Corporation to proceed against the properties of the sureties.