JUDGMENT :

This appeal under Section 32(9) of the State Financial Corporation Act, 1951 (for short, 'the Act') filed against the judgment and order dated 26.09.2014 passed in Civil Miscellaneous No.23/2009 by the Principal District & Sessions Judge at Raichur determining the liability of the appellants towards the respondent No.1 -Karnataka State Industrial Investment & Infrastructure Development Corporation Limited (for short, 'Corporation') under Section 31(1)(a)(aa) and Section 32 of the Act for a sum of Rs.5,24,21,409/-and Rs.1,10,48,116/-and to direct the respondents to pay the said sum together with interest at 20% per annum and 20.5% per annum, respectively.

2. For the sake of convenience and to avoid overlapping, the parties are referred to as per their rank before the trial court.

3. The facts leading to filing of the present appeal briefly stated are that, the respondent No.1, a private limited company represented by its Managing Director, respondent No.2 had approached the petitioner -Corporation for financial assistance by way of term loan of Rs.101 lakh for the purpose of establishing unit for cutting, polishing of various types granites blocks and to manufacture granites