SUBHRANSU SEKHAR PADHI vs GUNAMANI SWAIN .

The Supreme Court upheld the High Court's ruling that the Orissa State Financial Corporation (OSFC) could not invoke Section 29 of the State Financial Corporations Act, 1951 to sell properties mortgaged by guarantors without following the procedure under Section 31. The Court emphasized that Section 29 applies only to defaulting parties and not to sureties, thus invalidating the sale of the guarantors' properties. Consequently, the sale was quashed for violating statutory provisions, affirming the High Court's decision.