R. K. MAHAJAN, J. This is a writ petition filed by the the petitioners praying for the following reliefs : (i) to issue a writ, order or direction in the nature of certiorari quashing the notice dated 17-10-1995 under Section 29 of the U. P. Financial Corporations Act, 1951 (Annexure No. 24 to the writ petition) ; (ii) to issue a writ, order or direction in the nature of certiorari quashing the auction notice dated 19-10- 1995 as published in the Amar Ujala (Annexure No 25 to the writ petition) ; (iii) to issue a writ, order or direction in the nature of mandamus directing the respondents to implement the one time settlement dated 25-5-1995. 2. The petitioners are doing the business of cold storage in the name and style of Hundi Lal Jain Cold Storage and Ice Factory (P) Limited in District Mainpuri. It took loan from the U. P. Financial Corporation and the statement of the loan is mentioned in the chart filed by the counsel for the petitioners. 3. The short question for consideration is that according to the peti tioners there is one time settlement after issuing the recovery certificate of loan, which is Annexure No. RA-3 to the rejoinder affidavit and the peti tioner has complied with the terms of settlement but the respondents resiled. 4. The authenticity of the one time settlement has been questioned by the respondent in second supplementary counter-affidavit on the ground that competent authority did not accept the recommendation for one time settlement of the negotiating committee. 5. Shri Sudhir Agarwal, learned counsel for the petitioners had submitted that the Corporation is bound by the one time settlement as approval was given by the competent authority. 6. Before proceeding further it is relevant to mention the relevant paragraph of Annexure No. RA-3 to the rejoinder affidavit which reflects that one time settlement has been also effected regarding Hundi Lal Jain Cold Storage and Ice Factory (P) Ltd. alongwith other defaulters after having approval from the competent authority. It may be mentioned here that detailed terms of settlement figure to the document attached Annexure No. RA-3. 7. Shri V. B. Singh, learned counsel for the U. P, Financial Corpora tion submitted that the Corporation will be loosing interest by way of this settlement and would suffer a huge loss as the amount due is not less than Rs. It may be mentioned here that detailed terms of settlement figure to the document attached Annexure No. RA-3. 7. Shri V. B. Singh, learned counsel for the U. P, Financial Corpora tion submitted that the Corporation will be loosing interest by way of this settlement and would suffer a huge loss as the amount due is not less than Rs. 1 crore but in counter-affidavit the amount mentioned is Rs. 87 lakhs. 8. Since the matter requires detailed enquiry and also investigation of facts which in a writ petition it is not desirable to do so. However, we would like to pass the following order, in order to save the interest of the industry as well as the money which is being immediately being paid to the corporation. The idea of advancing loans to the factories of private sector so that the factories should run properly and produce wealth for the nation and if for some reasons there is a default and there is one time settlement and the petitioners are ready to pay the amount, the corporation should accept it without prejudice to its rights. Though the learned counsel for the respondent has not given any tacit concession but it could be inferred reasonably that if the matter is referred regarding the interest or other liability to the competent court under Section 31 of the U. P. Financial Corporation Act then the court may pass equitable order. 9. So in view of the facts and circumstances of the case and the dis cussions we propose the following order that the petitioner should pay Rs. 48,91,646 within 15 days of the receiving of the certified copy of this order to the corporation and regarding remaining Rs. 50,00,000 approx. (the exact amount can be calculated later on) but the petitioner has to furnish a guarantee of Rs. 50,00,000 from any Scheduled Bank to the sati-faction of the District Judge, Mainpuri. Any claim arising out of above amount can be preferred by the Corporation under Section 31 of the Act. 10. Reference would be also made to Section 62 of the Indian Con tract Act. It lays down that if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed. 11. 10. Reference would be also made to Section 62 of the Indian Con tract Act. It lays down that if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed. 11. In our view, novation of a contract cannot be enquired into in a writ jurisdiction as it needs investigation and the facts are disputed. It would be advantageous to refer Section 29 of the State Financial Corpora tions Act, 1951 (hereinafter referred to as the Act of l95i ). It deals with rights of Financial Corporation in case of default. It is quoted with advan tage : "29. Rights of Financial Corporation in case of default.- (I) Where any industrial concern, which is under a liability to the Finan cial Corporation under an agreement, makes any default in repayment of any loan or advance or any instalment 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 Corpora tion shall have the right to take over the management or posses sion or both of the industrial concern, as well as the right to transfer by way of lease or sale and realise 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 property transferred as if the trans fer 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 pr produced wholly or partly from goods forming part of the security hold by it as it had with respect to the original goods. (3) The Financial Corporation shall have the same rights and powers with respect to goods manufactured pr produced wholly or partly from goods forming part of the security hold 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 con trary, 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". If this provision (sic) (1) of Section 29 is resorted by the Financial Corporation for default in payment of loan the Corporation takes over the manage ment and by fiction of law it is owner of the industrial concern in lieu of the loan advanced. This safeguard has been provided by the Legislature to gee that the public money is saved from being flittered away. 12. Section 30 of the Act of 1951 deals with power to call for repay ment before period. We need not necessarily reproduce it in verbatim. The idea behind this section is that if the Corporation feels that on account of false and misleading information or there is reasonable apprehension the Corporation would not be able to pay the amount. Provision can be resorted by a notice in writing to the industrial concern even if it fails to comply with the terms of the agreement regarding payment. This provision also safeguard, the interest of the public money. 13. Section 31 (1) deals with special provision for enforcement of claims by Financial Corporation and it is quoted with advantage : "31. Provision can be resorted by a notice in writing to the industrial concern even if it fails to comply with the terms of the agreement regarding payment. This provision also safeguard, the interest of the public money. 13. Section 31 (1) deals with special provision for enforcement of claims by Financial Corporation and it is quoted with advantage : "31. Special provisions for enforcement of claims by Financial Corporation.- (1) Where an industrial concern, in breach of any agreement, makes any default in repayment of any loan or advance or any instalment thereof or in meeting its obligations in relation to any guarantee given by the Corporation or other wise fails to comply with the terms of its agreement with the Financial Corporation or where the Financial Corporation requires an industrial concern to make immediate repayment of any loan or advance under Section 30 and the industrial concern fails to make such repayment then, without prejudice to the pro visions of Section 29 of this Act and of Section 69 of the Transfer of Property Act 1882 (4 of 1882), any officer of the Financial Corporation, generally or specially authorized by the Board in this behalf, may apply to the District Judge within the limits of whose jurisdiction the industrial concern carries on the whole or a substantial part of its business for one or more of the following reliefs, namely : (a) for an order for the sale of the property pledged, hypotheca ted or assigned to the Financial Corporation as security for the loan or advance ; or (aa) for enforcing the liability of any surety ; of (b) for transferring the management of the industrial concern to the Financial Corporation ; or (c) for ad interim injunction restraining the industrial concern from transferring or removing its machinery or plant or equipment from the premises of the industrial concern without the permission of the Board, where such removal is apprehended. (2) An application under sub-section (1) shall state the nature and extent of the liability of the industrial concern to the Financial Corporation, the ground on which it is made and such other particulars as may be prescribed," 14. The action taken by the Corporation would be without prejudice to the rights under provision of Section 29 and Section 69 of the Transfer of Property Act, 1882. The action taken by the Corporation would be without prejudice to the rights under provision of Section 29 and Section 69 of the Transfer of Property Act, 1882. The Corporation has been given different choices to enforce the liability and an application is to be moved before the District Judge. 15. Section 32 of Act of 1951 deals with the procedure of District Judge in respect of applications under Section 31 of the Act of 1951. It would be relevant to quote Section 32 (1) of Act of 1951 : "32 (1) When the application is for the reliefs 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 realise in his estimate an amount equivalent in value of the out standing liability of the industrial concern to the Financial Cor poration, 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 machi nery, plant or equipment. " 16. Section 32 (1-A) of the Act of 1951 deals with notice calling upon the surety to pay the amount. 17. Section 32 (2) of the Act of 1951 deals with granting of ad interim injunction restraining the industrial concern from transferring or removing the machinery etc. There is a provision for show-cause notice to the owner of the industrial concern regarding confirmation of attachment order, injunction order and enforcement of liability of the surety. 18. Sub-cause (6) of Section 32 postulates that after opportunity has been given to the affected person the District Judge shall proceed to investi gate the claim of the Financial Corporation in accordance with the provi sions contained in the Code of Civil Procedure. After making enquiry/ investigating the claim, obviously after giving the opportunity to the parties to lead evidence or after hearing them the final order regarding the enforced merit of attachment etc. is to be made. If the show cause is shown by the affected party may be surety or industrial concern the notice has to be discharged. 19. After making enquiry/ investigating the claim, obviously after giving the opportunity to the parties to lead evidence or after hearing them the final order regarding the enforced merit of attachment etc. is to be made. If the show cause is shown by the affected party may be surety or industrial concern the notice has to be discharged. 19. Sub-section (9) of Section 32 of the Act of 1951 reads as under : "any party aggrieved by an order under sub-section (4-A), 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. " 20. Even final transfer of management of industrial concern to the Financial Corporation cannot be passed under sub-clause (7) of Section 32 of Act of 1951 after hearing of the parties. There is difference between taking over of the management under Section 29 of Art of 1951 and passing of final transfer of the management. The judicial approval of the District Judge has to be obtained as the affected person may pay the amount or show cause in that case the property may not be transferred or it may be released. 21. The Corporation has two remedies as it is very clear from Sec tion 31 of the Act 0/1951 that it would not affect the rights under Section 29 of Act of 1951, The Legislature in its wisdom thought it fit that in order to protect the public property the Corporation should be given remedies so that public money can be saved. In a case Andhra Pradesh State Financial Cor poration v. M/s, Gar Re-Rolling Mills, JT 1994 (1) SC 586, it was observed that the doctrine of election, as commonly understood, would thus not be attracted under the Act in view of the express phraseology used in Section 31 of 1951, viz. "without prejudice to the provisions of Section 29 of this Act". The Supreme Court observed that the Corporation has to recover the loans and advances so as to be able to give financial resources assistance to other industries and unless it recovers its dues, the money will not remain in circulation for long. "without prejudice to the provisions of Section 29 of this Act". The Supreme Court observed that the Corporation has to recover the loans and advances so as to be able to give financial resources assistance to other industries and unless it recovers its dues, the money will not remain in circulation for long. It is with this object in view that the Parliament gave the Corporation the right to proceed under Section 31 of the Act, preserv ing at the same time its rights and remedy under Section 29 of the Act, so that the Corporations are not chocked by the defaulting debtors by adopt ing frustrating or dilatory tactics in the proceedings in the court initiated under Section 31 of the Act. 22. The Honble Supreme Court also observed in U. P. Financial Corporation v. Naini Oxygen and Acetylene Gas Ltd. , (1995) 2 SCC 754 that High Court is not to substitute its judgment in commercial matters and the Corporation is the best judge. The Corporation is to act like as prudent, commercial or business like it may be, for the decision of the Corporation unless action is a mala fide in a wrong decision taken by it, it is not subject to challenge. 23. The proceedings under Sections 31 and 32 of the Act of 1951 are in the nature of execution as held in Man Singh v. Punjab Financial Corpo ration Chandigarh, AIR 1985 P and H 149. Similarly the same view was expressed in M/s. Prakash Playing Cards Manufacturing Company, Delhi, v. Delhi Financial Corporation, New Delhi, AIR 1980 Delhi 48 that the appli cation under Section 3! of the State Financial Corporation Act is not a suit. 24. In our considered view the petition under Article 226 of the Constitution of India do not lie except in very rare cases under the Act of 1951 where the breach of fundamental rights is alleged or there is a gross misuse of power. The scope would be limited in rarest of rare cases which is difficult to enunciate. Since the effective remedy has been provided to the Corporation as well as debtor surety under Section 33 of the Act of 1951 and the adjudication has to be rendered by the District Judge and it is further subject to appeal to High Court. The scope would be limited in rarest of rare cases which is difficult to enunciate. Since the effective remedy has been provided to the Corporation as well as debtor surety under Section 33 of the Act of 1951 and the adjudication has to be rendered by the District Judge and it is further subject to appeal to High Court. Since the facts under the Act would involve investigation as mentioned in Section 32 (6) of the Act of 1951, and in writ jurisdiction investigation is not possible of disputed, facts. 25. We are of the opinion that in case the High Court starts inter fering then the very purpose of Legislature in providing remedy would be frustrated. People will be getting cheap justice at the door justice before the District Judge than in the High Courts. 26. We are of the view that the writ petition is not maintainable. To consider the equities in this case, we have proposed the order above and which has to be complied in taking special circumstances of this case. The Corporation is further directed to raise a plea of its claim within fifteen days before the District Judge, who will decide the same after giving opportunities to the parties within three months. 27. With these directions the writ petition is disposed of. Petition disposed of. .