1 S.B. Civil Misc. Appeal No.1167/2007 Rajasthan Financial Corporation. vs. Sohan Singh Hansa & Ors. S.B. Civil Misc. Appeal No.1167/2007 Rajasthan Financial Corporation. vs. Sohan Singh Hansa & Ors. Date : 24.11.2008 HON'BLE MR. PRAKASH TATIA, J. Mr.Rajesh Joshi, for the appellant. Mr.DK Parihar, for the respondents. - - - - - Heard learned counsel for the parties and perused the record. The appellant's application filed under Section 31 of the State Financial Corporation Act, 1951 (for short 'the SFC Act') was dismissed by the Court of Additional District Judge No.2, Jodhpur vide order dated 22.7.2006 as barred by time, hence, this appeal has been preferred by appellant RFC to challenge the order dated 22.7.2006. According to the appellant/creditor, the loan was advanced on 3.7.1984 of Rs.1,80,000/- to the respondent no.1. Respondents no.2 and 3 were guarantors who 2 S.B. Civil Misc. Appeal No.1167/2007 Rajasthan Financial Corporation. vs. Sohan Singh Hansa & Ors. submitted guarantee deed on 29.3.1985. When the borrower failed to repay the loan amount, then a legal notice was served upon the respondents on 21.3.1987 under Section 30 of the SFC Act and he was directed to make the payment. It is also alleged in the application under Section 31 itself that before that several letters were given to the borrower for making payments but he failed to make payments. The application under Section 31 was submitted before the District Court, Jodhpur on 2.1.1992. Admittedly, it is beyond 3 years period from the date of accrual of cause of action and the contention of the appellant is that the period of limitation for application under Section 31 of SFC Act is 12 years. Learned counsel for the appellant relied upon the judgment of this Court delivered in the case of Abdul Ghani vs. Rajasthan Financial Corporation & Anr. (S.B. Civil Misc. Appeal No.826/2001) decided on 10.4.2003 and tried to distinguish the judgment of the Hon'ble Supreme Court delivered in the case of Maharashtra State Financial Corporation vs. Ashok K. Agarwal & Ors. reported in AIR 2006 SC 1584. The issue has already been decided by the Hon'ble Apex Court and the Hon'ble Apex Court held that for application under Section 31 of the SFC Act, the relevant Article applicable is Article 137 of the 3 S.B. Civil Misc. Appeal No.1167/2007 Rajasthan Financial Corporation. vs. Sohan Singh Hansa & Ors. Limitation Act and not Article 136 and under Article 137 of the Limitation Act, the period prescribed is three (3) years. Learned counsel for the appellant tried to distinguish the judgment delivered by the Hon'ble Apex Court in the case of Ashok K. Agarwal (supra) on the ground that that was a case of recovery against the surety. The distinction drawn by learned counsel for the appellant has no factual and legal basis so as to separate the case of borrower and surety when Section 31 of SFC Act is sought to be enforced for recovery of the amount under the provisions and as per the procedure of SFC Act. In view of the judgment of the Hon'ble Apex Court in the case of Ashok K. Agarwal (supra), the judgment of this Court delivered in the case of Abdul Ghani (supra) has no application. In view of the above, I do not find any merit in this appeal and the same is hereby dismissed. (PRAKASH TATIA), J. S.Phophaliya