By the Court.—Heard Shri Manoj Gupta and Shri Mayank Agrawal, learned counsel for the petitioner. Shri Anurag Khanna appears for Pradeshiya Industrial and Investment Corporation of U.P. Ltd. (PICUP).

2. The petitioner is a private limited company incorporated under the Companies Act engaged in the business of packaging. It borrowed Rs. 2,14,00,000/- at the rate of 21% per annum to be paid in installments under an agreement dated 31.10.1996 with PICUP, a Government company as defined under Section 617 of (The) Companies Act, 1956 with more that 51% of shareholding held by the State Government, for establishing a packaging industry at Kosi Kalan. The petitioner company wanted further advances to meet the increased production at its Agra unit and to increase the capacity at Kosi Kalan unit. The PICUP did not agree for any further advance of loan, on which the petitioner company approached the Bank of Baroda, and under the terms and conditions with the Bank, it agreed to repay the entire outstanding amount to PICUP. The offer was accepted in terms of para 10 of the agreement dated 31.10.1996 on repayment of the entire outstanding amount with interest and prepayment premium on p