Punjab Financial Corp vs M/S.Surya Auto Industries

The Supreme Court held that the action taken by the appellant-Corporation under Section 29 of the State Financial Corporations Act, 1951, for recovery of dues was justified as the respondent failed to adhere to the loan repayment schedule. The Court emphasized that while the Corporation has the statutory power to take possession of mortgaged property, it must act fairly and within a reasonable time. The High Court's order quashing the Corporation's action was set aside, affirming the Corporation's right to recover dues and take possession of the collateral security.