1. Heard Mr. Ram Balak Mahto, Sr.Advocate appearing on behalf of the petitioner and Mr. Y.V. Giri, Sr.Advocate representing the Bihar State Financial Corporation and its officers.

2. The petitioner, which is a company incorporated under the Companies Act, paid a sum of Rs. 89,45,056.70 to the Bihar State Financial Corporation, under a rehabilitation package formalised in an agreement. Having made full payment of the amount stipulated in the agreement along with interest, the petitioner thought that it was at last free of the Corporationss demands. The Corporation, however, thinks otherwise. It served upon the petitioner an additional demand of Rs. 36,09,115.00 paise (as on 28.02.2005) vide letter, dated 26.02.2005 and took the position that the petitioners dues would stand settled only on payment of the aforesaid amount.

3. This writ petition is filed challenging the demand letter dated 26.2.2005 and seeking a declaration that the petitioner has cleared off its dues to the Corporation. The petitioner seeks a further direction to the Corporation to return the documents submitted by it as security for the payment of the amount.

4. The material facts for appreciating the stand