JHUNUAGROCHEMICALSPVTLTD Vs. BIHAR STATE FINANCIAL CORPORATION

JUDGEMENT

(1.) In this application the petitioner has inter alia prayed for issuance of a writ of mandamus directing the respondent No. 1 Corporation to release the term loan as also the respondent No. 2 Bank for sanction and release of working capital loan in favour of the petitioner.

(2.) Mr. T. K. Jha, learned Senior Counsel appearing on behalf of the petitioner, however, at the time of hearing, however, made submissions only with regard to the grant of sanction and release of working capital loan by the respondent No. 2 in favour of the petitioner.

(3.) The petitioner intended to set-up an unit for manufacture of N. P. K. Granulated Mixed Fertilizers of different grades and for the said purpose on or about 30th July, 1985, applied for grant of term loan amounting to Rs 25.50 lacs before the respondent No. 1 An application for grant of working capital loan was also made before Kishanganj, Branch of the Allahabad Bank. Initially the capital cost of the Unit, was approved by the respondent for a sum of Rs. 40.80 lacs but a revised project report was made wherein the capital cost of the unit was enhanced to Rs. 65.24 lacs.