JUDGMENT

OZA, J. :— These two appeals have been filed by the two appellants against the judgment of the High Court of Karnataka, Bangalore dated 30-3-1974. This appeal has been filed in this Court after getting a certificate from the High Court of Karnataka under Art. 133(l) (a) and (b) of the Constitution.

2. The brief facts giving rise to the present appeal are that the appellants owned an Industrial concern by the name of Bangalore Fancy Fire Works and with a view to improve the industry and develop it further they sought aid from the Government of Mysore, one of the respondents, under the Mysore State Aid to Industries Act, 1951 (hereinafter referred to as the Act) and application for this aid was made to the concerned authorities of the State on 23-1-1953 wherein an aid in the nature of financial assistance to the tune of Rs. one lac was sought. By the orders of the competent authority dated 3-9-1953 the financial assistance of Rs. 60,000/- by way of loan was sanctioned. This financial assistance-by way of loan was secured from the Bank of Mysore Ltd. and the State Government agreed to stand as surety and also to guarantee the repayment of loan with interest to the Bank of Myso