law: State Financial Corporations Act, 1951 
  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 installment thereof 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 right to take over the management or possession or
  
  both of the industrial concern, as well the right to transfer by way of lease
  
  or sale and realize 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 under sub-section (1), shall vest in the transferee
  
  all rights in or to the property transferred 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.
  (4) Where any action has been taken against an industrial
  
  concern under the provisions of sub-section (1), all costs charges and expenses
  
  which in the opinion of the Financial Corporation have been properly incurred
  
  by it as incidental thereto shall be recoverable from the industrial concern
  
  and the money which is received by it 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) 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
  
  the concern.