DELHI FINANCIAL CORPORATION Vs. RAM PERSHAD

JUDGEMENT

(1.) Ram Pershad respondent (herein called 'the respondent') raised loans from the Delhi Finance Corporation (herein called 'the Corporation') on the basis of two mortgage deeds by mortgaging the imovable properties, plant and machinery belonging to him. He. however, failed to re-pay the loans in accordance with the terms of the mortgage deeds. The Corporation filed to suit against the respondent for the recovery of the said loans.

(2.) On the pleadings of the parties 11 issues were framed. Issues No. 1 to 10 were found by the learned District Judge in favour of the Corporation. In respect of issue No. 11 to the effect "Whether the State Financial Corporation Act. 1951, is ultra vires of the Constitution of India as alleged by the respondent" the District Judge recorded the finding that the State Financial Corporation Act is ultra vires of the Constitution of India and in the result dismissed the suit. The Corporation challenged the aforesaid order in appeal in this Court (Civil Appeal No. 84 of 1971). The appeal was accepted and the case was remanded to the District Judge for making a reference to this Court on the question of ultra vires of the Act. Accordingly, the District Judge made a reference under section 113 of the C.P.C. and the same has been numbered as Reference No. 2 of 1973.

(3.) The respondent feeling aggrieved by the order of the learned Single Judge filed L.P.A. No. 152 of 1972 under action 10 of the 'Letters Patent. During the pendency of the appeal the Corporation filed an application (CM. No. 1082 of 1975) under section 32