SICOM LIMITED Vs. CO NICK ALLOYS INDIA LTD

JUDGEMENT

(1.) The present petition is filed under section 31 (l) (aa) of the State Financial Corporations Act against the respondent Nos. 2 and 3 as the guarantors.

(2.) Some of the material facts can be briefly enumerated as under

(3.) The petitioner is the financial corporation incorporated by the Government of Maharashtra with an object to provide inter alia assistance to industries in the State of Maharashtra. The petitioner is a deemed State Financial corporation under the provisions of section 46 of the State Financia corporations Act, 1951. The respondent No. 1 approached the petitioner for sanction of a term loan of Rs. 320 lacs and accordingly by a letter dated 10-2- 1990 the said loan was sanctioned by the petitioner in favour of the responden no. 1 herein. The said loan was availed and in consideration thereof the assets of respondent No. 1 company including plant and machinery and building were mortgaged under a deed of mortgage dated 13-8-1998.