JUDGMENT

Kapadia, J.-Leave granted.

2. The question in this civil appeal by special leave is - whether Bihar State Industrial Credit and Investment Corporation Limited (hereinafter referred to as "BICICO") acted mala fide and in breach of section 29 of the State Financial Corporation Act, 1951 by transferring the assets of the debtor company on 19.3.2002 and executing the agreement dated 26.4.2002 with M/s. Stichworth Exports Pvt. Ltd. (respondent No. 4).

3. The facts giving rise to this appeal are as follows :

In 1982, a company by the name M/s. Katihar Flour Mills (P) Ltd. was incorporated to take over the assets and business of a partnership firm M/s. Katihar Flour Mills, a business conducted by Jeloka group. The said company was promoted by Gopi Krishna Jeloka (since deceased), Binod Jeloka and Pradeep Jeloka (since deceased). The company is engaged in the business of manufacturing, processing, buying and selling of all kinds of grains and wheat products. The flour mill is the main asset of the company. It is located in Katihar, Bihar. On 16.5.1988, a term loan of Rs. 90 lacs was taken by the said company from BICICO, a State Financial Corporation within the meaning of the State Fi