Section 28 in The Industrial Finance Corporation Act, 1948
28. Right of Corporation in case of default .-(1) Where any industrial concern which is under a liability to the Corporation under an agreement makes any default in repayment [of any loan or advance or any instalment thereof][or in meeting its obligations in relation to any guarantee given by the Corporation] [ Inserted by Act 74 of 1972, Section 16.] or otherwise fails to comply with the terms of its agreement with the Corporation, the Corporation shall have the [right to take over the management, or possession, or both, of the concern] [ Substituted by Act 74 of 1972, Section 16, for certain words.], as well as the [right to transfer by way of lease or sale] [ Substituted by Act 28 of 1955, Section 19, for " right to sell" (w.e.f. 18.9.1955).] and realise the property pledged, mortgaged, hypothecated or assigned to the Corporation.
(2)Any transfer of property made by the Corporation in exercise of its powers [* * *] [ The words " of sale and realisation" omitted by Act 28 of 1955, Section 19 (w.e.f. 18.9.1955).] under sub-section (1) shall vest in the transferee all rights in or to the property transferred [as if the transfer] [ Substituted by Act 28 of 1955, Section 19, for certain words (w.e.f. 18.9.1955).] had been made by the owner of the property.(3)The Corporation shall have the same rights and powers with respect to goods manufactured or produced wholly or partly from goods forming part of security held by it, as it had with respect to the original goods.[(3-A) ] [Inserted by Act 78 of 1952, Section 17. ][Where any action has been taken against an industrial concern] [ Substituted by Act 74 of 1972, Section 16, for certain words.][under the provisions of sub-section (1), all costs, charges and expenses ] [Inserted by Act 78 of 1952, Section 17. ] [which, in the opinion of the Corporation, have been properly incurred by it] [ Substituted by Act 43 of 1957, Section 9, for properly incurred by it" (w.e.f. 21.12.1957).] [as incidental thereto] [ Substituted by Act 74 of 1972, Section 16, for certain words.][shall be recoverable from the industrial concern, and the money which is received by it ] [Inserted by Act 78 of 1952, Section 17. ] [* * *] [ Certain words omitted by Act 74 of 1972, Section 16.][shall, in the absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and, secondly, in discharge of the debt due to the Corporation, and the residue of the money so received shall be paid to the person entitled thereto. ] [Inserted by Act 78 of 1952, Section 17. ](4)Where the Corporation takes over the management [or possession] [ Inserted by Act 74 of 1972, Section 16.] of a concern under the provisions of sub-section (1), it shall be deemed to be the owner of such concern for purposes of suits by or against such concern and shall sue and be sued in the name [* * *] [ The words " of the owner" omitted by Act 43 of 1957, Section 9 (w.e.f. 21.12.1957).] of the concern.
