JUDGMENT

Gijas Rubbers Pvt Ltd, the petitioner herein, is an industrial unit engaged in the manufacture of waste rubber crumb. The business is being run in property which was allotted on hire purchase basis under the Rules for Allotment of Land in Development Areas on Hire Purchase basis for Industrial Purposes Rules, 1969. As requested by the petitioner, permission was granted by the General Manager, District Industries Centre, to mortgage the assets including the land and structures for availing a loan of Rs. 25,00,000/- for expansion of the Industrial unit. While allowing the request by Ext.P5 order, among other conditions, the petitioner was ordered to furnish personal property as security. Being aggrieved by the imposition of the said condition, the petitioner is before this Court.

2. Before adverting to the contentions advanced by both sides, it would be apposite to detail the facts which led to the filing of this petition.

In the year 1989, by Ext.P10(A) agreement, the Government agreed to let on hire, property having an extent of 0.0405 Ares (10 cents) in Sy.No.132/1 pt of Kadungalloor Village in the Development Area at Edayar for the establishment of a unit for the manufactur