JUDGMENT

OJHA, J. (for Ranganathan, J. and himself). - Special leave granted.

2. This appeal by special leave has been preferred against the judgment dated July 10, 1990 of the Bombay High Court in Appeal No. 423 of 1987. Respondent 1 is a private limited company whereas respondents 2 to 4 are its Directors. Respondent 1, for setting up a factory, sought financial assistance from the appellant and the appellant sanctioned a loan of Rs. 30 lakhs. In order to secure the loan respondent 1 executed a deed of mortgage of certain properties on June 29, 1979 and respondents 2 to 4 on the same date by executing a deed of guarantee stood surety for repayment of the said loan. It was a case of personal guarantee only as no property was given in security. For the sake of brevity the appellant, respondent 1 and respondents 2 to 4 shall hereinafter be referred to as the Corporation, the Company and the sureties respectively. The amount of loan was to be advanced in phases and after the Corporation had advanced a part of the total sanctioned loan, the Company did not want to avail of the balance of the amount as it seems to have lost interest in setting up the factory for reasons with which we a