JUDGMENT

M. JAGANNADHA RAO, J. - Leave granted in both the special leave petitions.

2. These two appeals have been preferred against the judgment of the Andhra Pradesh High Court in WA No. 946 of 1995 dated 8-5-1996. Civil appeal arising out of SLP (C) No. 12831 of 1996 has been preferred by the Andhra Pradesh State Financial Corporation (hereinafter called the Corporation). In CA No. ... arising out of SLP (C) No. 15260 of 1996, the appellant is M/s. Vasant Organics (P) Ltd.

3. The Corporation sanctioned a term loan of Rs. 10,09,080 to the writ petitioner first respondent [M/s. Vajra Chemicals (P) Ltd.] on 28-11-1979 and the said amount remained unpaid by the due date - 13-2-1987. Upon a representation made by the first respondent on 3-3-1990, the Corporation rescheduled the loan repayment, waived an amount of Rs. 4,48,803.23 and the due date was extended. There was default in payment of the instalments. The first respondent made a representation on 17-8-1992 and paid Rs. 25,000 and undertook to pay Rs. 25,000 in the first week of September 1992 and balance of Rs. 1.50 lakhs before 31-12-1992 and other instalments in time. The Corporation sent telegram dated 2-3-1992 and letter dat