B. Veerappa, J.

1. The above matter has been remanded from the Hon'ble Supreme Court in Civil Appeal No. 10437/2013 decided on 19th November, 2013. This Court is directed to decide the appeal afresh after giving an opportunity of hearing to the present appellant/KSFC and respondents herein in accordance with law.

2. The factual matrix of the case are:

The appellant/Corporation has been established by the Government of Karnataka under the provisions of Section 3 of the State Financial Corporation Act (hereinafter referred to as 'the SFC Act') and the Corporation has to deal with the funds on business principles having due regard to the interests of the industry, commerce and the general public as required under the provisions of Section 24 of the SFC Act and in accordance with the required Financial Discipline. The Financial Corporation discharges the public duty while disbursing loan as well as while recovering the same from the beneficiaries for recycling. That one M/s. Sunsu Garments Pvt. Ltd., had availed the financial assistance of Rs. 26 lakhs from the appellant/Corporation on 31.3.1989 payable in 23 quarterly installments and an additional term loan of Rs. 31 lakhs was