( 1 ) THE present petition is filed under section 31 (l) (aa) of the State Financial Corporations Act against the respondent Nos. 2 and 3 as the guarantors.

( 2 ) SOME of the material facts can be briefly enumerated as under

( 3 ) THE petitioner is the financial corporation incorporated by the Government of Maharashtra with an object to provide inter alia assistance to industries in the State of Maharashtra. The petitioner is a deemed State Financial corporation under the provisions of section 46 of the State Financia corporations Act, 1951. The respondent No. 1 approached the petitioner for sanction of a term loan of Rs. 320 lacs and accordingly by a letter dated 10-2- 1990 the said loan was sanctioned by the petitioner in favour of the responden no. 1 herein. The said loan was availed and in consideration thereof the assets of respondent No. 1 company including plant and machinery and building were mortgaged under a deed of mortgage dated 13-8-1998.

( 4 ) IN consideration of the said amount lent and advanced to the responden no. 1 company by the petitioner, the respondent Nos. 2 and 3 executed the deec of guarantee dated 14-8-1998 for guaranteeing the repayment of the said