PRADEEP KUMAR SHARMA vs U.P.F.C. RAJPUR ROAD DEHRADUN .

The Supreme Court held that the Uttar Pradesh Finance Corporation (UPFC) acted within its rights under Section 29 of the State Financial Corporation Act when it initiated recovery proceedings against the borrower for defaulting on a loan. The Court emphasized that the equitable mortgage created by the borrower was valid and that the subsequent sale of the mortgaged property to a third party did not affect the UPFC's right to sell the property to recover dues. The Court upheld the sale in favor of Pradeep Kumar Sharma, affirming the legality of the UPFC's actions and dismissing the claims of the subsequent purchaser, Vishnu Dutt Sharma.