JUDGMENT - V.C. DAGA, J.:---Rule. Respondents waive service. By consent of parties, heard finally.

2. This petition is by a Private Limited Company who had an industrial unit at Daman, established in the year 1996, on the borrowings made from respondent No. 1, a State owned Corporation, engaged in the business of industrial financing (hereinafter referred to as 'the Corporation' for short).

3. The petition is directed against the action of the Corporation, initiated under section 29 of the State Financial Corporation Act, 1951 ("the Act" for short), contending that the action taken is arbitrary and not in good faith and the proposed action to proceed with the sale of their Industrial Unit-is in violation of their fundamental rights guaranteed under Articles 14 and 19(1)(g) of the Constitution of India.

BACKDROP FACTS

4. The relevant facts to appreciate the case of the petitioners are as under:

The petitioners were sanctioned term loan for their industrial unit by the Corporation in the sum of Rs. 240.00 lakhs which was subsequently revised to Rs. 265.00 lakhs. However, finally respondent No. 1 sanctioned and released loan of Rs. 200.00 lakhs with interest at the rate of 25% per ann

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