( 1 ) THIS appeal under Clause 15 of the Letters Patent is directed against the judgment and order of N. H. Bhatt J. in Special Civil Application No. 1399 of 1979 whereby he directed the appellant Corporation to disburse to the respondent (original petitioner) the loan amounts forthwith in accordance with the letter of offer dated 24-7-1978 followed by the agreement dated 1-2-1979. The appellant-Corporation having been aggrieved by the said order and direction given by the learned Single Judge has preferred the present appeal. The facts giving rise to this appeal briefly stated are as under.

( 2 ) THE appellant is a statutory Corporation established under sec. 3 of the State Financial Corporations Act 1951 (hereinafter called the Act ). The said Act was enacted to provide medium and long-term credit to industrial concerns which expression as defined by sec. 2 (c) (iii) includes a concern engaged or to be engaged in the hotel industry. The appellant-Corporation established under sec. 3 of the Act is a body corporate having a perpetual succession and a common seal With power subject to the provisions of the Act to acquire hold and dispose of property and to sue and be sued in its name. By sec. 9 the superintendence direction and management of the affairs and business of the Corporation vest in a Board of Directors which with the assistance of an Executive Committee and a Managing Director may exercise all the powers and discharge all the functions which may be exercised or discharged by the Corporation. Sec. 10 provides for the constitution of a Board of Directors. According to that provision the Board of Directors shall consist of twelve persons four of whom shall be Government nominees. It also lays down that the Managing Director shall be appointed by the State Government in consultation with and after obtaining the advice of the Industrial Development Bank of India and except in the case of first appointment also with the Board. By virtue of sec 15 the Chairman of the Board shall be one of the Directors not being the Managing Director nominated by the State Government after considering except in the case of the nomination of the first Chairman the recommendation of the Board The powers and duties of the Board have been delineated in Chapter III of the Act. Sec. 24 lays down that the Board in discharging its functions under the Act shall act on business principles due regard being had by it to the interests of industry commerce and the general public. Sec. 25 (1) (g) with which we are concerned states that the Financial Corporation may subject to the provisions of the Act carry on and transact the business of granting loans or advances to an industrial concern repayable within a period not exceeding twenty years from the date on which they are granted. Sub-sec. (2) of sec. 25 inter alia provides that no accommodation shall be given under clause (g) of sub-sec. (1) unless it is sufficiently secured by a pledge mortgage hypothecation or assignment of movable or immovable property or other tangible assets in the manner prescribed by regulations. Sec. 27 empowers the Corporation to impose a further condition or conditions as are considered necessary or expedient for protecting the interests of the Corporation and for securing that the accomodation granted by it is put to the best use by the industrial concern. Sub-sec. (2) of sec. 27 next provides that where any arrangement entered into by the Financial Corporation with an industrial concern provides for the appointment by the Corporation of one or more directors of such industrial concern such provisions and any appointment of Directors in pursuance thereof shall be valid and effective notwithstanding anything to the contrary contained in the Companies Act 1956 or any other law for the time being in force etc. Sec. 29 then outlines the rights of the Financial Corporation in case of default by the industrial concern. It provides that where any industrial concern w