Section 29. Rights of Financial Corporation in case of default

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]. — 30. Power to call for repayment before agreed period. Notwithstanding anything in any agreement to the contrary, the Financial Corporation may, by notice in writing, require any industrial concern to which it has granted any loan or advance to discharge forthwith in full its liabilities to the — Financial Corporation, (a) if it appears to the Board that false or misleading information in any material particular was given by the industrial concern in its application for the loan or advance; or (b) if the industrial concern has failed to comply with the terms of its contract with the Financial Corporation in the matter of the loan or advance; or (c) if there is a reasonable apprehension that the industrial concern is unable to pay its debts or that proceedings for liquidation may be commenced in respect thereof; or (d) if the property pledged, mortgaged, hypothecated or assigned to the Financial Corporation as security for the loan or advance is not insured and kept insured by the industrial concern to the satisfaction of the Financial Corporation or depreciates in value to such an extent that, in the opinion 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). of the Board, further security to the satisfaction of the Board should be given and such security is not given; or (e) if, without the permission of the Board, any machinery, plant or other equipment, whether forming part of the security or otherwise, is removed from the premises of the industrial concern without being replaced; or (f) if for any reason it is necessary to protect the interests of the Financial Corporation.