KARNATAKA STATE FINANCIAL CORPORATION Vs. SHIVAKUMAR K ; K S SREENIVAS; C R VIJAYAKUMAR; GANESH MURTHY; H S SHASHIDHAR; DALLY PONNAPPA; N M KASETTY @ NATARAJ M KASETTY; K KUMAR SWAMY; K MANJUNATHA

JUDGEMENT

(1.) The appellant/Karnataka State Financial Corporation (hereinafter referred to as 'the Corporation' for brevity) is in appeal aggrieved by the order dated 13th July 2010 passed in Civil Misc.No.41/2002 by the Principal District Judge, Shimoga, wherein the petition filed by the Corporation under Section 31(1)(aa) of the State Financial Corporation Act, 1951 ('the Act' for short) is dismissed with cost.

(2.) The Corporation claimed that, the respondents being the Directors of the loanee Company executed personal guarantee deed dated 28.6.1996 in respect of loan sanctioned. The Company since defaulted in repayment of loan, the Corporation invoked its jurisdiction under Section 29 of the Act, took over possession of assets of the Company and invoked the personal guarantee deed executed by the guarantors and sought for recovery of amount due i.e., of Rs.34,24,488/- towards principal amount, Rs.8,01,979/- towards interest and Rs.11,927/- towards other charges, Rs.8,000/- towards legal fees and other charges, in all they are due to a sum of Rs.42,46,394/-.

(3.) Respondent No.7 is none other than the first respondent himself in the capacity of Partner of a Partnership concern whose property sought to be attached. Respondents 7 to 10 are the partners of the said Partnership Firm. Respondent No.5 is released from liability and subsequently deleted from the proceedings. Only respondent Nos.1 and 2 contested the petition.