( 1 ) IN this writ petition the three petitioners are praying this Court to issue a writ in the nature of writ of mandamus directing Respondents 1, 2 and 5 to pay a sum of Rs, 1,29,19,683. 00 (Rupees One crore twenty nine lakhs nineteen thousand six hundred and eighty three only), i. e. , principal sum of Rs. 52,00,000/ -. (Rupees fifty two lakhs) with interest at 19. 5% with quarterly rests from 28. 2. 1993 to 31. 12. 1998 and subsequent interest at the same rate till the date of payment to the third respondent bank towards the loan payable by the fourth respondent company to third respondent bank in Original Application No. 58 of 1997 before the Debts Recovery Tribunal (DRT), Bangalore.

( 2 ) THE second petitioner is wife and third petitioner is brother of first petitioner. First petitioner is Managing Director and Petitioners 2 and 3 are Directors of fourth respondent - M/s. Delta Oil and Fats Limited (hereafter called, the Company), which was promoted as joint venture with A. P. Civil Supplies Corporation, first respondent herein. First respondent holds 50% of the shares and petitioners jointly hold 35% of the shares and the remaining 15% are held by third parties. Fourth respondent availed a term loan of Rs. 28. 5 lakhs from A. P. State Financial Corporation (APSFC), second respondent herein, and a sum of Rs. 48. 5 lakhs from State Bank of India, Tadepalligudem Branch, third respondent herein towards working capital and the bridge loan of Rs. 10 lakhs from the first respondent. APSFC has first charge and SBI has second charge over the unit of fourth respondent which was established at Prattipadu, West Godavari District. Fourth respondent unit started production in 1983 and was allegedly making profits up to 1989. It paid back the bridge loan amount of Rs. 10,00,000/- (Rupees Ten lakhs only) with interest to first respondent and also declared dividends during that period. However, due to adverse market forces the company started incurring losses from 1990 onwards. In extraordinary General Body meeting of the Company held on 12. 8. 1991 it was resolved to remove first petitioner as Managing Director and Petitioners 2 and 3 as Directors. They intimated alleged withdrawal of personal guarantee bonds executed by them at the time of borrowing loans from Respondents 2 and 3. First respondent Corporation represented by its District Manager was made Managing Director of the Company. It was also resolved to lease out the unit and when bids were invited, a prospective bidder offered a lease amount of Rs. 19,00,000 (Rupees Nineteen lakhs only) per year for a period of three years. If it was finalised, the company would have got Rs. 57,00,000/- (Rupees Fifty seven lakhs only) by way of lease amount. But, first respondent did not finalise the lease nor took any steps for reviving the unit. The unit was kept idle since 12. 8. 1991.

( 3 ) AT that stage, first petitioner offered to buy 12,000 shares held by first respondent at Rs. 102/- per share whereas the book value was only Rs. 40/ -. An amount of Rs. 3. 6 lakhs was paid, but first respondent did not consider the matter nor refunded the amount of Rs. 3. 6 lakhs. Therefore, first petitioner filed a suit being O. S. No. 105 of 1992 on the file of the Court of Senior Civil Judge, Tadepalligudem which was later transferred to DRT and marked as O. A. No. 58 of 1997 for recovery of the said amount. As the loan taken from respondents 2 and 3 was not discharged in time, there was continuing accumulation of interest on the principal.

( 4 ) APSFC in exercise of their powers seized the unit of the Company in January 1993 and issued notification inviting bids for selling the unit by auction. The auction was held on 28. 2,1993. One Sri G. K. B. Choudary offered maximum offer of Rs. 54,00,000/- (Rupees Fifty four lakhs only), which according to the petitioners is fair and reasonable and second respondent was also satisfied with the offer received.

( 5 ) APSFC did not finalise sale d