JUDGMENT 1. - The petitioner has confined the relief in his writ petition in relation to plot H-8 in RIICO Industrial Area, Bagru. The petitioner has relinquished all the other reliefs which had been claimed in the writ petition. I will confine the narration of facts to the relief which survives now as aforesaid. 2. The petitioner is a partnership concern and it applied for allotment of plot in Industrial area Bagru to Rajasthan State Industrial Development Investment Corporation (for short RIICO). Three plots H-9, H-10 and H-I1 were allotted to him for a period of 99 years lease. Thereafter, the petitioner applied for grant of loan for establishing an industry of Rolling Stainless Steel Sheets at Bagru to the Rajasthan Financial Corporation (for short the RFC). The RFC sanctioned the loan of R;. 13.5) lass on 16th December - 1932 and equitable mortgage was created in respect of plot Nos. H-9, H-10 and H-11 in favour of the RFC for the purpose of security. The petitioner is said to have availed Rs. 9.04 lacs out of the sanctioned loan, and hypothecated plot Nos. H-9, H-10 and H-11 as security of the loan and an agreement was entered into. 3. A place of plot of land measuring 4700 sq. metres, Plot H-8 adjoining to the aforesaid plots, on the application of the petitioner, was further allotted to it by RIICO The lease agreement of the aforesaid plot is said to have been executed on 4th May 1983 and registered on 6th May 1983. There appears to be no dispute that no equitable mortgage was created in respect of plot No. H-8 and was created in respect of plot Nos. H-9, H-10 and H-11. The RFC in its reply (page 46) has clearly stated that "they are connected with the allotment of plot No. H-8 to the petitioner firm and, therefore, they are not aware of the execution of the agreement or registration of the said plot. It is a matter which is an exclusive concern of RIICO." When the petitioner failed to pay the loan in instalments, a notice under section 30 of the State Financial Corporation Act, 1951 (for short the SFC Act) was given to the petitioner and thereafter under section 29 of that Act possession of the industrial immovable was taken over on 21.8.87. In exercise of its right conferred under section 29 of the SFC Act, the RFC wanted to sale the industrial unit. 4. The question arises as to whether in terms of the agreement and under the provisions of SFC Act, the RFC is entitled to self plot No. H-8 also which was never mortgaged with it as a security for the loan advanced by it? It is not the case of the RFC that even plot No. H-8 was ever mortgaged by it or equitable mortgage was created in favour of it. A reference to the reply of the RFC has already been made in the earlier part of this order and there is no dispute between the parties that so far as Plot No H-8 is concerned, it was never mortgaged with the RFC as security for the payment of loan advanced by it to the petitioner. The RFC placed reliance on Clause 2(C) of the agreement entered into in between it and the petitioner in support of its case that it has a right under it to put the entire unit which is one and of which possession has been taken earlier under section 29 of the SFC Act to sale to realise its dues against the petitioner. It will be proper to extract the relevant para 2 and it reads as under : "2. The aforesaid loan, seed capital loan and subsidy shall be secured by : (A) An equitable Mortgage by deposit of title deeds over your existing land, buildings and Hypothecation of plant and machinery at plot/ Khasra No. 9 to 1 l Industrial Area, Bagru. The aforesaid loan, seed capital loan and subsidy shall be secured by : (A) An equitable Mortgage by deposit of title deeds over your existing land, buildings and Hypothecation of plant and machinery at plot/ Khasra No. 9 to 1 l Industrial Area, Bagru. Provided however that if you commit any breach of any of the terms and conditions herein or of the Deed of Hypothecation herein after mentioned without prejudice to the Corporation's right to call back the loan seed capital loan and subsidy then outstanding and take proceedings for recovery thereof y )u will have to execute a Legal Mortgage of the said property and the plant and machinery hereinafter mentioned in the English form with the usual convenient and conditions including a Power of Sale out of Court, Power to appoint a Receiver out of Court and the special powers given under the State Financial Corporations Act 1951 (LX(II of 1951) hereinafter called "the SFCs Act" and under 10% Central Out right Grant of Subsidy Scheme 1971/15% Subsidy in Ten Additional Back- ward District of Rajasthan Scheme 1977 and under Seed Capital Scheme (i. e. Financial assistance out of the capital raised under section 4-A of the State Financial Corporations Act, 1951 (LX[II of 1951). (B) A Hypothecation in our usual form of your existing plant and machinery and movable property situated at Plot Khasra No. 9 to 11 Industrial area Bagru and any further plant, machinery, fixtures and fittings that may be brought by you from the aforesaid loan, seed capital loan and subsidy or otherwise and installed on the said premises or lying in your go-downs or be held by any body as Mercantile Agents on your behalf or under your order or in the course of transit to your premises exclude in raw material stock in trade and finished and unfinished goods of the concern/company. The property fixed machinery, plant and movable assets are hereinafter called "The MORTGAGED PREMISES". The property fixed machinery, plant and movable assets are hereinafter called "The MORTGAGED PREMISES". (C) For the consideration aforesaid the mortgage concern/company both Hereby Assign unto the corporation all that the book-debts outstanding moneys, receivable claims, bills, contracts, engagements, securities, investments, rights and assets which now are or which may hereafter become owing or belonging to him/her in connection with the business of Rolling of Stainless Steel carried on by him/her/them under the name and style of M/s Mehta Metals Industries, Bagru (hereinafter called (The SAID BUSINESS') and the good will of the said business to hold the same into the Corporation absolutely subject to the proviso for redemption hereinafter contained : Provided that the mortgagor shall be at liberty to mortgage, pledge or hypothecate all or any of the liquid assets mentioned in this clause to any Bank or Banks for the purpose of obtaining Working Capital Loans for the said Business of the Mortgagor and in that event the charge of the Corporation over the said liquid assets of the mortgagor shall rank subsequent to the charge of the Bank or Banks providing Working Capital loans to the mortgagor. (D) The Corporation will have a negative charge on machinery-stores and machinery-spares stock-in-trade and finished and unfinished goods both present and future. You will however be free to raise funds from Banks against pledge or hypothecation of raw material stock-in-trade and finished and unfinished goods." 5. A perusal of the aforesaid extracted sub-para of para 2 will leave no manner of doubt that so far as equitable mortgage is concerned, it was created in favour of RFC in respect of plot Nos. H-9, H-10 and H-11, Industrial Area, Bagru as well as plant, machinery were hypothecated with it. The said subpara of para 2 along with sub-para in my opinion does not vest any power in RIICO even to realise the security amount out of the in move able property which was not mortgaged with it and in respect of which no equitable mortgage was created. A perusal of Section 29 of the SFC Act will show that under it the right of transfer by way of lease or sale, only extends to the property which has been pledged, mortgaged, hypothecated or assigned to the Financial Corporation and not in respect of other property. A perusal of Section 29 of the SFC Act will show that under it the right of transfer by way of lease or sale, only extends to the property which has been pledged, mortgaged, hypothecated or assigned to the Financial Corporation and not in respect of other property. When admittedly, plot H-8 was not mortgaged or assigned with the RFC, the RFC did not advance any loan at plot No. H-8, in my opinion, it has no right under section 29 of the c FC Act and even under the agreement to sale the same. It may however, be stated that as stated by the learned counsel for the petitioner that only 2100 sq. yard of land was taken possession under section 29 of the SFC Act. If any part of plot No. H-9, H-10 and H-11 have been left, the RFC will be free to take possession of it, but so far as plot No. H-8 is concerned, which was allotted to the petitioner by RIICO and in respect of which no equitable mortgage was created on which no charge was created for payment of loan in my opinion under the provisions of the SFC Act, the RFC has no right to put it to sale in order to realise the amount of loan. 6. I hereby allow this writ petition only to the extent that RFC has no right to sell plot No. H-8 in the Industrial Area, Bagru in exercise of right under section 29 of the SFC Act. The RFC has a right to self or put to sale the plot Nos. H-9, H-10 and H-1 1, measuring 700 square yards each total 2100 sq. yards along with plant and machinery which might have been hypothecate to it or which might have been established even thereafter as that alone will be governed in para 2(C) extracted above.Writ petition allowed. *******