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 valid, as the respondent failed to repay the loan despite repeated notices. The Court emphasized that the Corporation, as a public authority, must act fairly and responsibly when exercising its powers. The High Court's order quashing the Corporation's action was set aside, affirming the legality of the possession taken under the Act.