Section 30 in The Industrial Finance Corporation Act, 1948
30. Special provisions for enforcement of claims by the Corporation .-(1) [Where an industrial concern, in breach of any agreement, makes any default in repayment of any loan or advance or any instalment thereof ] [or in meeting its obligations in relation to the guarantee given by the Corporation] [ Inserted by Act 74 of 1972, Section 17.][or otherwise fails to comply with the terms of its agreement with the Corporation or where the Corporation requires an industrial concern to make immediate repayment of any loan or advance under section 29 and the industrial concern fails to make such repayment, then, without prejudice to the provisions ] [Substituted by Act 78 of 1952, Section 19, for certain words. ] [of section 28 of this Act and] [ Inserted by Act 28 of 1955, Section 20 (w.e.f. 18.9.1955).][of section 69 of the Transfer of Property Act, 1882 (4 of 1882),] [Substituted by Act 78 of 1952, Section 19, for certain words. ] any officer of the Corporation generally or especially authorised by the Board in this behalf may apply to [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] for one or more of the following reliefs, namely:-
(a)for an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the Corporation as security for the loan or advance, or(b)for transferring the management of the industrial concern to the Corporation, or(c)for an ad interim injunction where there is apprehension of the machinery or the equipment being removed from the premises of the industrial concern without the permission of the Board.(2)An application under sub-section (1) shall state the nature and extent of the liability of the industrial concern to the Corporation, the ground on which it is made and such other particulars as may be prescribed.(3)When the application is for the reliefs mentioned in sub-clauses (a) and (c) of sub-section (1), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] shall pass an ad interim order attaching the security or so much of the property of the industrial concern as would on being sold realise [in its estimation] [Substituted by Act 56 of 1974, Section 3 and Sch. II, for " in his estimation" . ] an amount equivalent in value to the outstanding liability of the industrial concern to the Corporation together with the costs of the proceedings taken under this section with or without an ad interim injunction restraining the industrial concern from transferring or removing its machinery or equipment.(4)Where the application is for the relief mentioned in sub-clause (b) of sub-section (1), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] shall grant an ad interim injunction restraining the industrial concern from transferring or removing its machinery or equipment and issue a notice calling upon the industrial concern to show cause on a date to be specified in the notice why the management of the industrial concern should not be transferred to the Corporation.(5)Before passing any order under sub-section (3) or sub-section (4), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] may, if [it] [ Substituted by Act 56 of 1974, Section 3 and Sch. II, for " he" .] thinks fit, examine the officer making the application.(6)At the same time as [it] [ Substituted by Act 56 of 1974, Section 3 and Sch. II, for " he" .] passes an order under sub-section (3), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] shall issue to the industrial concern a notice accompanied by copies of the order, the application [and the evidence, if any, recorded by it calling upon the industrial concern to show cause] [ Inserted by Act 56 of 1974, Section 3 and Sch. II, for certain words.] on a date to be specified in the notice why the ad interim order of attachment should not be made absolute or the injunction confirmed.(7)If no cause is shown on or before the date specified in the notice under sub-sections (4) and (6), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] shall forthwith make the ad interim order absolute and direct the sale of the attached property or transfer the management of the industrial concern to the Corporation or confirm the injunction.(8)If cause is shown, [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] shall proceed to investigate the claim of the Corporation and the provision of the Code of Civil Procedure, 1908 (5 of 1908), shall as far as practicable apply to such proceedings.(9)On an investigation made under sub-section (8), the Court shall pass an order-(a)confirming the order of attachment and directing the sale of the attached property, or(b)varying the order of attachment so as to release a portion of the property from attachment and directing the sale of the remainder of the attached property, or(c)releasing the property from attachment, if [it] [ Substituted by Act 56 of 1974, Section 3 and Sch. II, for " he" .] is satisfied that it is not necessary in the interest of the Corporation, or(d)confirming or dissolving the injunction, or(e)transferring the management of the industrial concern to the Corporation of rejecting the claim made in this behalf:Provided that when making any order under clause (c), [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] may make such further orders as [it] [ Substituted by Act 56 of 1974, Section 3 and Sch. II, for " he" .]thinks necessary to protect the interests of the Corporation, and may apportion the costs of the proceedings in such manner as [it] [ Substituted by Act 56 of 1974, Section 3 and Sch. II, for " he" .] thinks fit:Provided further that unless the Corporation intimates to [the Court] [ Substituted by Act 74 of 1972, Section 17, for " District Judge" .] that it will not appeal against any order releasing any property from attachment, such order shall not be given effect to until the expiry of the period fixed under sub-section (11) within which an appeal may be preferred, or if an appeal is preferred, [unless the Court empowered to hear appeals from the decisions of the said Court otherwise directs] [ Substituted by Act 74 of 1972, Section 7, for " unless the High Court otherwise directs" .], until the appeal is disposed of.(10)An order of attachment or sale of property under this section shall be carried into effect as far as may be practicable in the manner provided in the Code of Civil Procedure, 1908 (5 of 1908), for the attachment or sale of property in execution of a decree, as if the Corporation were the decree-holder.[(10-A) An order under this section transferring the management of an industrial concern to the Corporation shall be carried into effect, as far as may be practicable, in the manner provided in the Code of Civil Procedure, 1908 (5 of 1908), for the possession of immovable property or the delivery of movable property in execution of a decree, as if the Corporation were the decree-holder.] [ Inserted by Act 28 of 1955, Section 20 (w.e.f. 18.9.1955).](11)Any party aggrieved by an order under sub-section (7) or sub-section (9) may, within thirty days from the date of the order, [appeal to the Court empowered to hear appeals from the decisions of the Court which passed the order and the appellate Court may] [ Substituted by Act 74 of 1972, Section 17, for " appeal to the High Court, and upon such appeal, the High Court may" .] after hearing the parties pass such orders as it thinks proper.(12)Nothing in this section shall be construed, where proceedings for liquidation in respect of the industrial concern have commenced before an application is made under sub-section (1) as giving to the Corporation any preference over the other creditors of the industrial concern not conferred on it by any other law.(13).[* * *] [ Sub-S. (13) omitted by Act 74 of 1972, Section 17.](14)[ For the removal of doubts, it is hereby declared that any Court competent to grant an ad interim injunction under this section shall also have the power to appoint a receiver and to exercise all other powers incidental thereto.(15)All proceedings (whether by way of suits or appeals or other proceedings) under this Act pending before a District Judge or an Additional District Judge of a High Court at the commencement of the Industrial Finance Corporation (Amendment) Act, 1972 (74 of 1972), shall, on such commencement, be proceeded with and disposed of as if this section had not been amended by the said Act.(16)Every suit or other proceedings which are disposed of in accordance with the provisions contained in sub-section (15) or in respect of which time for appeal has not expired at the commencement of the Industrial Finance Corporation (Amendment) Act, 1972 (74 of 1972), may, on such commencement, be appealed against as if this section had not been amended by the said Act. ] [ Inserted by Act 74 of 1972, Section 17.][30-A. Power of Corporation to appoint Directors of an industrial concern when management is taken over.-(1) When the management of an industrial concern is taken over the Corporation, the Corporation may, by order notified in the Official Gazette, appoint as many persons as it thinks fit to be the ][Directors, or, as the case may be, the Administrator of that industrial concern] [ Substituted by Act 50 of 1986, Section 15, for certain words (w.e.f. 2.2.1987).] [and nothing in the Companies Act, 1956 (1 of 1956), or in any such law or instrument relating to the industrial concern in so far as it makes, in relation to a Director, any provision for the holding of any share qualification, age limit, restrictions on the number of directorships, retirement by rotation or removal from office shall apply to any Director appointed by the Corporation under this section] [ Inserted by Act 43 of 1957, Section 11.].(2)[ The power to appoint Directors under this section includes the power to appoint any individual,] [Inserted by Act 28 of 1955, Section 20 (w.e.f. 18.9.1955). ][to be the Manager] [ Substituted by Act 50 of 1986, Section 15, for certain words (w.e.f. 2.2.1987).] [of the industrial concern on such terms and conditions as the Corporation may think fit.] [Inserted by Act 28 of 1955, Section 20 (w.e.f. 18.9.1955). ]
