KAMDAR S. U. , J.

( 1 ) THE present petition is filed under the provisions of section 3 l (l) (aa) of the STATE FINANCIAL CORPORATIONS ACT, 1951. The petitioner is a financial institution. Some time in or about February, 1993 the company known as Sanjivani Agro Industries approached the petitioner with a request to grant a loan of more than Rs. 110. 00 lacs for setting up a plant for solvent extraction and oil refinery at Plot No. A/1 in the Palus Industrial Area of midc within the village limits of Palus, Taluka Tasgaon, District Sangli.

( 2 ) THE said application for grant of term -loan was sanctioned by the company and the said loan amount was advanced by the petitioner to the said company. The company executed an indenture of mortgage dated 16-8-1993 securing the said loan amount and mortgaged the plant, machinery and building of the company with the said financial institution. The respondent herein being respondent Nos. 1 to 4 have executed the deed of guarantee dated 16-8-1993 and the respondent Nos. 2 and 5 has executed the deed of guarantee dated 20-9-1993 in favour of the petitioner herein guaranting the repayment of the aforesaid amount by the respondent company w