JUDGMENT - Dr. D.Y. CHANDRACHUD, J.:---By a letter dated 24th February, 1992, the petitioner agreed to grant to the respondent-company in the present case. M/s. Lloyds Steel Industries Ltd., a term loan of Rs. 5.52 crores for the purpose of enabling the respondent to construct dwelling units for its employees at Wardha. The respondent executed various documents in favour of the petitioner, including a Demand Promissory Note dated 21st August, 1992, promising to pay to the petitioner an amount of Rs. 5.52 crores with interest at the rate of 22% per annum for value received. A loan agreement dated 17th August, 1992 and a supplementary loan agreement also of the same date were executed by the Company. On 27th August, 1992, the Chairman of the company and one of its Directors executed Guarantee Agreements by which they guaranteed the due repayment of the amount disbursed by the petitioner.

2. A letter dated 24th February, 1992 issued by the petitioner sanctioning the term loan, inter alia, stipulated that the rate of interest would be as per the guidelines of the National Housing Bank for NHB refinanceable loans and that there would be a service charge of 2%. The letter, inter alia, pr

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