law: State Financial Corporations Act, 1951 
  32. Procedure of District Judge in respect of applications
  
  under section 31 
  (1) When the application is for the relief’s mentioned in clauses
  
  (a) and (c) of sub-section (1) of section 31, the District Judge shall pass an
  
  ad interim order attaching the security, or so much of the property of the
  
  industrial concern as would on being sold realize in his estimate an amount
  
  equivalent in value to the outstanding liability of the industrial concern to
  
  the Financial Corporation, together with the costs of the proceedings taken
  
  under section 31, with or without an ad interim injunction restraining the
  
  industrial concern from transferring or removing its machinery, plant or
  
  equipment.
  3[(1A) When the application is for the relief mentioned in
  
  clause (aa) of sub-section (1) of section 31, the District Judge shall issue a
  
  notice calling upon the surety to show cause on a date to be specified in the
  
  notice why his liability should not be enforced.]
  (2) When the application is for the relief mentioned in clause
  
  (b) of sub-section (1) of section 31, the District Judge shall grant an ad
  
  interim injunction restraining the industrial concern from transferring or
  
  removing its machinery, plant or equipment and issue a notice calling upon the
  
  industrial concern to show cause, on a date to be specified in the notice, why
  
  the management of the industrial concern should not be transferred to the
  
  Financial Corporation.
  (3) Before passing any order under sub-section (1) or
  
  sub-section (2) 3[or issuing a notice under sub-section (1A),] the District
  
  Judge may, if he thinks fit, examine the officer making the application.
  2[(4) At the same time as he passes an order under sub-section
  
  (1), the District Judge shall issue to the industrial concern or to the owner
  
  of the security attached a notice accompanied by copies of the order, the
  
  application and the evidence, if any, recorded by him calling upon it or him to
  
  show cause on a date to be specified in the notice why the ad interim order of
  
  attachment should not be made absolute or the injunction confirmed.
  (4A) If no cause is shown on or before the date specified in the
  
  notice under sub-section (1A), the District Judge shall forthwith order the
  
  enforcement of the liability of the surety.]
  (5) If no cause is shown on or before the date specified in the
  
  notice under sub-sections (2) and (4), the District Judge shall forthwith make
  
  the ad interim order absolute and direct the sale of the attached property or
  
  transfer the management of the industrial concern to the Financial Corporation
  
  or confirm the injunctions.
  (6) If cause is shown, the District Judge shall proceed to
  
  investigate the claim of the Financial Corporation in accordance with the
  
  provisions contained in the Code of Civil Procedure, 1908 (5 of 1908), in so
  
  far as such provisions may be applied thereto.
  (7) After making an investigation under sub-section (6), the
  
  District Judge may –
  (a) confirm the order of attachment and direct
  
  the sale of the attached property;
  (b) vary the order of attachment so as to
  
  release a portion of the property from attachment and direct the sale of the
  
  remainder of the attached property;
  (c) release the property from attachment;
  (d) confirm or dissolve the injunction; 4[***]
  3[(da) direct the enforcement of the liability
  
  of the surety or reject the claim made in this behalf; or]
  (e) transfer the management of the industrial
  
  concern to the Financial Corporation or reject the claim made in this behalf:
  PROVIDED that when making an order under clause
  
  (c) 3[or making an order rejecting the claim to enforce the liability of the
  
  surety under clause (da) or making an order rejecting the claim to transfer the
  
  management of the industrial concern to the Financial Corporation under clause
  
  (e),] the District Judge may make such further orders as he thinks necessary to
  
  protect the interests of the Financial Corporation and may apportion the costs
  
  of the proceedings in such manner as he thinks fit:
  PROVIDED FURTHER that unless the
  
  Financial Corporation intimates to the District Judge that it will not appeal
  
  against any order releasing any property from attachment 4[or rejecting the
  
  claim to enforce the liability of the surety or rejecting the claim to transfer
  
  the industrial concern to the Financial Corporation], such order shall not be
  
  given effect to, until the expiry of the period fixed under sub-section (9)
  
  within which an appeal may be preferred or, if an appeal is preferred, unless
  
  the High Court otherwise direct until the appeal is disposed of.
  (8) An order of attachment or sale or property under this
  
  Section shall be carried into effect as far as practicable in the manner
  
  provided in the Code of Civil Procedure, 1908 (5 of 1908), for the attachment
  
  or sale of property in execution of a decree as if the Financial Corporation
  
  were the decree-holder.
  (8A) An order under this section transferring the management of
  
  an industrial concern to the Financial Corporation shall be carried into effect,
  
  as far as may be practicable, in the manner provided in the Code of Civil
  
  Procedure, 1908 (5 of 1908), for the possession of immovable property or the
  
  delivery of movable property in execution of a decree, as if the Financial
  
  Corporation were the decree-holder.
  (9) Any party aggrieved by an order 19[under sub-section (4A),
  
  sub-section (5)] or sub-section (7) may, within thirty days from the date of
  
  the order, appeal to the High Court, and upon such appeal the High Court may,
  
  after hearing the parties, pass such orders thereon as it thinks proper.
  (10) Where proceedings for liquidation in respect of an
  
  industrial concern have commenced before an application is made under
  
  sub-section (1) of section 31, nothing in this section shall be construed as
  
  giving to the Financial Corporation any preference over the other creditors of
  
  the industrial concern not conferred on it by any other law.
  (11) The functions of a District Judge under this section shall
  
  be exercisable-
  (a) in a presidency town, where there is a
  
  city civil court having jurisdiction, by a Judge of that court and in the
  
  absence of such court, by the High Court; and
  (b) elsewhere, also by an additional District
  
  Judge or by any Judge of the principal court of civil jurisdiction.
  (12) For the removal of doubts it is hereby declared that any
  
  court competent to grant an ad interim injunction under this section shall also
  
  have the power to appoint a Receiver and to exercise all the other powers
  
  incidental thereto.