The suit has been filed by the plaintiff against the defendant for declaration and other consequential reliefs.

2. The plaintiff is a public limited company registered under Indian Companies Act, 1956. The plaintiff has stated that it is one of the largest private sector manufacturers of ice cream and dairy products. The plaintiffs company is marketing Arun (Ice Cream) and Arokya (Standardised Milk) and running business so as to maintain a standard. The plaintiff company approached the defendant, Industrial Development Bank of India on about 29.06.1998 to provide financial assistance for running a Modern Dhall Mill, a Bakery, cold storage for their Ice Cream products and for expansion of their Salem dairy, for which their loan request was for Rs.700 lakhs and their total project cost was Rs.1,050 lakhs.

3. The defendant informed the plaintiff that the term loan for the above said purpose was sanctioned vide their letter, dated 14.09.1998. Pursuant to the above, loan agreement dated 210. 1998 was entered into at Chennai by the plaintiff with the defendant, whereby the plaintiff agreed to avail the term loan to the maximum extent of Rs.700 lakhs on the terms and conditio