JUDGMENT

Balakrishnan, J.—Leave granted.

The appellant is a registered company having its head office at Mumbai. It is a non-banking financial institution func­tioning under the regulation of the Reserve Bank of India. It is carrying on business, inter alia, of leasing and hire purchase. The first respondent is the Chairman and founder trustee of a trust by name ‘Visveswaraya Education Trust’. The second respondent, wife of the first respondent is also a trustee. The trust runs a dental col­lege by name Rajiv Gandhi Dental College. The res­pondents entered into an agreement with the appellant company whereby the appellant agreed to finance the purchase of 100 hydraulically operated dental chairs. The total cost of the chairs was around Rs. 92,50,000/-. The appellant company agreed to finance the respondents for the purchase of these chairs through a lease agreement and as per the agreement, the re­spondents were liable to pay rentals quarterly. The respondents agreed to pay quarterly a sum of Rs.7,50,000/- for the first year; Rs. 12,50,000/- for the second year; Rs. 8,00,000/- for the third year and Rs.6,25,000/- for the fourth year. As per the agreement, the appellant company, the