1. Petition filed under Section 31 (l) (aa) of the State Financial Corporation Act, directing respondents 2 and 3 to pay the petitioner a sum of Rs. 24,19,380.20 with further interest at 16% per annum from the date of filing till the date of realisation.

2. The case in brief is as follows:

The 1st respondent through its partners applied for a term loan for business for manufacturing audio cassettes and a term loan of Rs. 7.35 lakhs was sanctioned, by an order dated 30.6.82 by the petitioner. The terms of repayment and rate of interest are specified in the sanction order. The 1st respondent executed a deed of hypothecation on 211. 92 thereby hypothecating the machineries financed by the petitioner. Respondents 2 and 3 executed a deed of guarantee on 211. 82 thereby fully guaranteeing the due repayment of the above loan. The guarantee is a continuing one. It is also joint and several. The first respondent did not care to repay the loan and became a chronic defaulter. In spite of reminders and warnings, they failed to pay the instalments. The loan was foreclosed on 11. 92 and even then, the loan was not repaid, and brought the hypothecated assets through auction cum tende