This appeal has been filed by the West Bengal Industrial Development Corporation Limited against the judgment and order of the learned single Judge dated 22nd January, 2008, whereby the learned single Judge allowed a recalling application, being G.A. No. 1939 of 2006, taken out by five of the six guarantors sued by the West Bengal Industrial Development Corporation Limited. While allowing the guarantors' application, the learned single Judge also dismissed the petition filed by the West Bengal Industrial Development Corporation Limited under Section 31(1)(aa) of the State Financial Corporations Act, 1951, by ASFC No.3 of 2005.

2. Briefly stated, case of the appellants is that the appellant No.1 had given financial assistance to the respondent No.1, a private limited company. West Bengal Industrial Development Corporation Limited (hereinafter referred to as WBIDC) sanctioned and disbursed a term of loan of Rs. 55,00,000/(Rupees fifty five lakhs) to the respondent No.1, which was subject to the interest @ 14% per annum, for setting up of a gramophone record manufacturing plant.

3. The term loan agreement contained, inter alia, the terms and conditions of sanction, disbursem