MAHADEVAMMA Vs. KARNATAKA STATE FINANCIAL CORPORATION

JUDGEMENT

(1.) Respondent Nos.1 to 5 in Misc. No.68/2004 on the file of the II Additional District Judge, Mysuru, have come up in this appeal under Section 32(9) of the State Financial Corporations Act, 1951 (hereinafter referred to as 'the Act') impugning the order dated 07.12.2009.

(2.) The brief facts leading to this appeal are as under:-

(3.) It is the case of the petitioner - KSFC that respondent Nos.1 and 2 had executed a mortgage deed along with respondent Nos.3 to 5 in its favour on 31.03.1994, in respect of various properties belonging to the rice mill, which was run by respondent Nos.1 and 2. For the aforesaid loan transaction, respondent Nos.3 to 5 stood as guarantors. It is stated that respondent Nos.1 and 2 committed default in repayment of loan, which prompted the petitioner KSFC in issuing show cause notice under Section 29 of the Act, and also recalling the loan on 27.05.2000, which has resulted in selling of vehicle and immovable property belonging to the said partnership firm and realizing Rs.1,60,000/- and Rs.4,50,000/- respectively, towards repayment of the loan account.