Subhransu Sekhar Padhi vs Gunamani Swain & Ors

The Supreme Court held that under Section 29 of the State Financial Corporations Act, 1951, a financial corporation can only proceed against the properties of the defaulting borrower and not against the properties of guarantors or sureties. The Court affirmed the High Court's ruling that the sale of properties mortgaged by guarantors was invalid as it violated the statutory provisions of Section 31 of the Act. Consequently, the appeal was dismissed, upholding the High Court's decision to quash the sale and transfer of the properties.