ALTAMAS KABIR, J.

( 1 ) LEAVE granted.

( 2 ) THE appellant no. 1 company was carrying on business of manufacturing galvanised pipes. In november, 1992 the appellant-company approached the respondent for financial assistance amounting to rs. 1,42,000/- to meet a part of the cost for setting up a factory in village Madap, Taluq Kolhapur in the district of Raigarh for the manufacture of galvanised pipes. The said amount was duly sanctioned and the said sum of Rs. 1,42,000/- was advanced by the respondent to the appellant company. An agreement was entered into for a term loan and the appellant-company also created a security for repayment of the amount by hypothecating its plant and machinery and creating an equitable mortgage of its factory premises situated in the above mentioned village. A loan agreement was executed on 30. 3. 1993 for repayment of the loan in various instalments. On the same day, the second appellant executed a personal guarantee for repayment of the loan amount in case of default by the appellant-company.

( 3 ) THE appellant-company committed several defaults in repayment of the loan amount compelling the respondent to issue a notice on 16. 10. 98 calling upon