Sanjay Karol, J.

Briefly stated, facts as they emerge from the record of this case are, that plaintiff is a Company incorporated under the Companies Act, 1956, having its registered office at New Himrus Building, Cart Road, Shimla.

2. M/s Lalji Paper Mills Private Limited (hereinafter referred to as the Company) was promoted by original defendants No. 1 to 6. With a view to obtain financial assistance from the plaintiff, through its Directors the Company approached the plaintiff for grant of term loan of a sum of Rs.48.85 lakhs for construction of factory building, purchase of land and machinery, setting up an industrial unit for manufacturing writing and printing paper at Barotiwala, District Solan, H.P. The said defendants moved an application for loan which is Ext. PW-2/E, dated 11.9.1980. Correspondence with regard to the same is Ext. PW-2/F (17.12.1980), Ext. PW-2/G (6.1.1981), Ext. PW-2/H (26.6.1984) and Ext. PW-2/J (23.9.1981). Acting on the representations of the promoters, plaintiff issued sanction letters Ext. PW-2/K (17.2.1981), Ext. PW-2/L (22.2.1984) and Ext. PW-2/M (28.2.1981). The loan was duly sanctioned. The resolution of the Company is Ext. PW-2/N (27.2.19