1. Counter-affidavit has been filed by the Bihar State Financial Corporation. The petitioner deems it not necessary to file a rejoinder as basic facts, as alleged in the writ petition, stand admitted. With consent of parties, the writ petition is being disposed of at this stage itself.

2. Petitioner has come to this Court against action sought to be taken by the Corporation to sell about 5 kathas of land at Digha in Patna belonging to one of the partners of the petitioners firm which was mortgaged to the Corporation to secure the financial accommodation.

3. The petitioner-firm consisted of three partners. They were all new entrepreneurs who were allured into setting up a small scale industry unit at Digha, Patna. They applied for term loan to the Corporation and the Corporation, it is not disputed, after project appraisal, sanctioned a term loan of Rs. 13.06 lacs vide sanction letter dated 22- 5-1990. The project appraisal report and the sanction letter is.Annexure-1 to the writ application. Pursuant to the aforesaid sanction, petitioner and his partners were asked to create mortgage for securing the loan to be disbursed and in the said mortgage, one of the partners gave 5