JUDGMENT - N.D. VYAS, J.:---This is an appeal from the judgment and order dated 13th March 1987 passed by the 2nd Additional District Judge, Pune, on the "Emergent Application" taken out by the respondents in Miscellaneous Application No. 496 of 1983 filed by the appellants.

2. The appellants are the Financial Corporation established under the State Finance Corporation Act, 1951. The Respondents, who are the original Respondents in the said miscellaneous application, had borrowed certain amounts from the appellants. The loan transaction is governed by the State Finance Corporation Act, 1951 (hereinafter referred to as "the said Act").

3. Brief facts giving rise to the present appeal are as follows:

On 17th July, 1976 the appellants sanctioned a term loan of Rs. 39,000/- to the Respondents. On 11th January, 1977 loan documents including a letter of hypothecation, also providing for schedule for repayment of the said amount, were executed. On 11th January, 1977 and on 7th August, 1977 the loan amounts loss some small amount were disbursed to the Respondents. The regional manager of the Appellants addressed a letter on 9th February, 1981 to the Respondents recalling the entire loan

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