law: The Small Industries Development Bank of India Act, 1989 
  38. Rights of Small
  
  Industries Bank in case of default
  1.     
  
    Where
  
  any industrial concern in the small-scale sector, which is under a liability to
  
  the Small Industries Bank 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 Small Industries Bank or otherwise fails
  
  to comply with the terms of its agreement, with the Small Industries Bank, the
  
  Small Industries Bank shall have the right to take over the management, or
  
  possession, or both of such industrial concern in the small-scale sector, as
  
  well as the right to transfer by way of lease or sale and realise the property
  
  pledged mortgaged, hypothecated or assigned to the Small Industries Bank.
  2.     
  
    Any
  
  transfer of property made by the Small Industries Bank, in exercise of its
  
  powers under sub-section (1), shall vest in the transfer all rights in or to
  
  the property transferred as if the transfer had been made by the owner of the
  
  property.
  3.     
  
    The
  
  Small Industries Bank 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 in the small-scale
  
  sector under the provisions of sub-section (1), all costs, charges and expenses
  
  which in the opinion of the Small Industries Bank have been properly incurred
  
  by it as incidental thereto shall be recoverable from the industrial concern in
  
  the small-scale sector 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 Small Industries Bank, and the residue of the money so
  
  received shall be paid to the person entitled thereto in accordance with his
  
  rights and interests.
  5.     
  
    Where
  
  the Small Industries Bank takes over the management or possession of an
  
  industrial concern in the small-scale sector under the provisions of
  
  sub-section (1), the Small Industries Bank shall be deemed to be to 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.