ORDER

Leave granted.

We have heard learned counsel on both sides.

2. This appeal by special leave arises from the order of the Division Bench of the High Court of Orissa dated March 5, 1990 made in OJC No.500/90. Admittedly, the respondent had taken a loan of a principal sum of Rs.14.68 lakhs for construction of the hotel which was payable in 18 yearly instalments between July 10, 1984 and January 10, 1993. The respondent committed default in payment of the loan as contracted. Pursuant to the request, a rephasement was done in November 1989 directing them to pay the amount in 9 half yearly instalments starting from January 1993 to January 1997 with interset on arrear defaulted amounting to Rs.10.64 lakhs was funding and was to be paid according to the schedule mentioned below :

March 1989 Rs.1.30 lakhs

March 1990 Rs.2.00 lakhs

March 1991 Rs.2.84 lakhs

March 1992 Rs.3.00 lakhs

March 1993 Rs.1.50 lakhs

3. In addition, current interest was also to be paid with half yearly rests. Since the respondent-Hotel did not comply with the conditions, notice was given to it under Section 30 of the State Financial Corporation Act, 1951 on February 1, 1990. Calling