Anuja Prabhudessai, J.

1. The Appellants herein have challenged the judgment dated 19th September, 2007 in Miscellaneous Civil Petition No.859 of 2006. By the impugned judgment the learned Ad-hoc District Judge, Pune has granted the Application filed by the Respondent No.1 under Section 31(1) (aa) of the State Financial Corporation Act, 1951 (for short 'the SFC Act) and thus directed the Appellants/Guarantors to pay jointly and severally a sum of Rs.10,92,63,025/-alongwith interest specified in the loan agreement w.e.f. 1st October, 2006 till the date of payment.

2. The brief facts necessary to decide this appeal are as under:-

The Respondent No.1 is a deemed State Financial Corporation within the meaning of Section 46 of the State Financial Corporation Act, 1951. The Respondent No.2 is a limited Company registered under the provisions of the Companies Act, having its registered office at Koregaon Park, South Main Road, Pune. The Appellants are the directors and shareholders of the Respondent No. 2- Company.

3. The Respondent No.1-Corporation had sanctioned and disbursed a term loan of Rs.650,000,000/-to the Respondent No.2-Company on the terms and conditions mentioned in the