SARDAR ALI KHAN, J.

( 1 ) A Division Bench of this High Court entertained some doubt about the opinion expressed by another Division Bench in Srinivasa Kandasari Sugar v. State, AIR 1976 Andh Pra 93 about the guidelines provided for implementation of the provisions of S. 29 of the State Financial Corporation Act, 1951 (for short "the Act. ") and has referred the matter for consideration of a Full Bench for an authoritative pronouncement on the subject. Therefore, the entire W. P. No. 255 of 1982 has been referred to the Full Bench for a decision on the facts as well as the law applicable to the case.

( 2 ) SINCE the entire W. P. has been referred to the Full Bench for a decision on the merits of the case, it becomes necessary to give a brief account of the facts of the case to indicate the controversy involved in the matter.

( 3 ) THE petitioner had applied for a loan of Rs. 99,500/- to the Andhra Pradesh State Financial Corporation (for short "the Corporation") for carrying on business of manufacturing agricultural implements at Koritipadu village in Amaravathi Road, Guntur. The petitioner executed a mortgage deed with the respondent-Corporation on 27-12-1966 thereby creating a ch

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