Section 29:
Rights of Financial Corporation in case of default.
(1) Where any industrial concern, which is
under a liability to the Financial Corporation under an agreement, makes any default in repayment of any
loan or advance or any instalment thereof 1[or in meeting its obligations in relation to any guarantee given
by the Corporation] or otherwise fails to comply with the terms of its agreement with the Financial
Corporation, the Financial Corporation shall have the 2[right to take over the management or possession
or both of the industrial concerns], as well as the 3[right to transfer by way of lease or sale] and realise the
property pledged, mortgaged, hypothecated or assigned to the Financial Corporation.
(2) Any transfer of property made by the Financial Corporation, in exercise of its powers 4*** under
sub-section (1), shall vest in the transferee all rights in or to the property transferred 5[as if the transfer]
had been made by the owner of the property.
(3) The Financial Corporation shall have the same rights and powers with respect to goods
manufactured or produced wholly or partly from goods forming part of the security held by it as it had
with respect to the original goods.
6[(4)
7[Where any action has been taken against an industrial concern] under the provisions of
sub-section (1), all costs, 8[charges and expenses which in the opinion of the Financial Corporation have
been properly incurred] by it 9[as incidental thereto] shall be recoverable from the industrial concern and
the money which is received by it
10*** 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 Financial Corporation, and the residue of the money so received shall be paid to the
person entitled thereto.]
(5)
7[Where the Financial Corporation has taken any action against an industrial concern] under the
provisions of sub-section (1), the Financial Corporation shall be deemed to be the owner of such concern,
for the purposes of suits by or against the concern, and shall sue and be sued in the name of 11[the
concern].
Notes:
1 Ins. by Act 77 of 1972, s. 19 (w.e.f. 30-12-1972).
2 Subs. by s. 19, ibid., for "right to take over the management of the industrial concern" (w.e.f. 30-12-1972).
3 Subs. by Act 56 of 1956, s. 14, for "right to sell" (w.e.f. 1-10-1956).
4. The words "of sale and relaisation" omitted by s. 14, ibid. (w.e.f. 1-10-1956).
5 Subs. by s.14, ibid., for "as if the sale"(w.e.f. 1-10-1956).
6 Subs. by s. 14, ibid., for sub-section (4) (w.e.f. 1-10-1956).
7 Subs. by Act 77 of 1972, s. 19, for certain words (w.e.f. 30-12-1956).
8 Subs. by Act 6 of 1962, s. 14, for "charges and expenses properly incurred" (w.e.f. 16-4-1962).
9 Subs. by Act 77 of 1972, s. 19, for "as incidental to such management, or transfer and realization." (w.e.f. 30-12-1956).
10. The words "from such management, or transfer and realization" omitted by s.19, ibid. (w.e.f. 30-12-1972).
11 Subs. by Act 6 of 1962, s. 14, for "the owner for the concern" (w.e.f. 16-4-1962).