A.P. Shah, C.J.

Admit. Learned counsel appearing for the respondent waives service. By consent, the appeal is taken up for hearing.

2. This appeal is directed against the judgment and order of the learned single Judge dated 9. 2006 in Writ Petition No.11009 of 2006.

3. The brief facts leading to the appeal are as follows:-

The appellant-IDBI had sanctioned financial assistance aggregating Rs.400 lakhs (since reduced to Rs.394 lakhs) to the respondent for setting up a new unit for manufacture of texturised and draw twisted polyester filament yarn with an installed capacity of 600 tpa, in Uruvaiyaru, Villianur Panchayat in Puducherry and for the said purpose, the respondent had executed loan and security documents. As the respondent defaulted in repayment of the principal amount of the loan and in payment of interest and other charges in terms of the relevant loan agreements entered into with the appellant, the appellant filed recovery application against the respondent and others before DRT, Chennai, being O.A.No.960 of 1998 for a claim amount of Rs.6,67,56,908/= as on

33. 98 together with further interest and other charges at agreed rates till realisation. In view of