Mr. Justice S.S. Chadha, Member—M/s. Gap Paper Board Industries Pvt. Ltd., the complainant in this Original Petition against Orissa State Financial Corporation (for Short called O.S.F.C.) and Industrial Promotion & Investment Corporation Ltd. (for short called IPICOL), Orissa, alleges deficient and inadequate rendering of financial assistance hired by the complainant for consideration and seeks a direction to the opposite parties to sanction fully viable project, not to charge interest till the entire loan on the revival project is sanctioned and released, disburse the lo& : to the complainant to complete the project and also to pay damages of Rs. 115 crores.

2. The assets of M/s. G.K. Straw Board Industries Pvt. Ltd. at Manamunda, Phulbani were seized on O.S.F.C. under Section 29 of the State Financial Corporation Act, 1951 in the year 1987 (10.12.87), with a right to sell/lease for realisation of its dues. These were ready for sale/ lease and disposal on “As is where is basis” with negotiation to pay back the amount outstanding after deposit of the down payment. The said unit alongwith other units was advertised for sale, but there was no response for the said unit. The Managing Director of O.F.S.C. was also authorised to negotiate with the available parties for sale of unit. One Mrs. Amrit Pal wife of Gr. Capt. Gajender Pal approached opposite party No. 1 and upon negotiation agreed to purchase the said industrial unit of M/s. G.K. Straw Board Industries (P) Ltd. The terms are contained in tine acceptance letter dated 31st March, 1988 (Annexure-A to the complaint) reading as follows :

“Sub : — Sale of indl. assets of G.K. Straw Board Industries (P) Ltd., Manamunda, Phulbani taken over u/Section 29 of the SFCs Act, 1951.

Ref : — Your offer, dated 30.3.88

Dear Madam,

After careful consideration, the Corporation has agreed in principle to sell the indl. assets of the above named unit like land, building, plant & machinery etc. to you on as-is-where-is basis subject to following terms and conditions :

1. Total Sale Value — Rs. 22,00,000/- (Rs. twenty-two lakhs) only.

2. Down Payment — Rs. 2,000,000/- (Rs. two lakhs) only to be paid in two instalments i.e. Rs. 1.00 lakh (Rs. one lakh) only immediately and rest within a month thereof on which interest will be charged till its payment.

3. Interest on the balance amount will be charged at the existing rate as was applied against loan to M/s. G.K. Straw Board Industries (P) Ltd.

4. Corporation will consider sanctioning additional loan as may be required for completion and implementation of the project on usual terms and conditions.

5. The balance amount will be repaid as per Repayment Schedule, to be decided and drawn-up jointly after sanction of addl. loan in your favour for both the loan.

6. Besides mortgage and hypothecation of the indl. assets to be sold, you and your husband will give personal guarantee to the Corporation as to repayment of loan and payment of interest.

As the immediate payment of Rs. 1,00,000/- has already been made by you, you are requested to execute necessary documents in compliance to above immediately.”

3. Mrs. Amrit Pal executed on 31st March, 1988 the requisite documents in compliance with the terms of sale contained in the above quoted letter and the immovable and movable assets of the said unit were released in her favour on as is where is basis, as per the letter Annexure Bl to the complaint. The proceedings of the handing over the assets were duly recorded on 31.3.88 and are Annexure Al to the complaint. O.S.F.C, in the letter dated 13.5.88 Annexure B informed Mrs. Amrit Pal that during the period of the previous management a sum of Rs. 4.12 lakhs was released by IPICOL in favour of M/s. Adya & Co. Engineering Pvt. Ltd., Calcutta as advance for supply of some machinery for the unit costing around Rs. 16.50 lakhs required in connection with manufacturing of grey boards and that these machineries are now lying with the above supplier for