111 of 1970.
one lac was sought.
The brief facts giving rise to the present appeal are that the appellants owned an Industrial companycern by the name of Bangalore Fancy Fire Works and with a view to improve the industry and develop it further they sought aid from the GoVernment of Mysore, one of the respondents, under the Mysore State Aid to Industries Act, 1951 hereinafter re ferred to as the Act and application for this aid was made to the companycerned authorities of the State on 23.1.1953 wherein an aid in the nature of financial assistance to the tune of Rs.
By the orders of the companype tent authority dated 3.9.1953 the financial assistance of Rs.60,000 by way of loan was sanctioned.
This financial assistance by way of loan was secured from the Bank of Mysore Ltd. and the State Government agreed to stand as surety and also to guarantee the repayment of loan with interest to the Bank of Mysore Ltd. It was also agreed that the appellants who receive the aid will execute a deed of mortgage in favour of the Government of Mysore of their properties in companysideration of their promise to guarantee the repayment of sums to be advanced to them by the Bank of Mysore.
From the Judgment and Decree dated 13.3.1974 of the Karnataka High Court in R.F. Appeal No.
Pursuant to these arrangements the appellant execut ed a deed of simple mortgage in favour of the Government of Mysore dated 14.11.1953.
The learned trial companyrt and also the High Court came to the companyclusion that the Government of Karnataka was entitled to recover the amount which they secured as an aid to the respondents under the scheme of the Act and for that purpose lawfully resorted to the sale of the properties by following the procedure of the recovery of arrears of land revenue as was provided for in Section 19 of the State Act and dismissed the suit filed by the plaintiff respondent.
CIVIL APPELLATE JURISDICTION Civil appeal No.
239240 of 1975.
103, 111, 120 of 1970 and 11 12 of 1971 and 142 of 1972 with Cross objec tions in R.F.A. No.
The Judgment of the Court was delivered by OZA, J These two appeals have been filed by the two appellants against the judgment of the High Court of Karna taka, Bangalore dated 30.3.1974.
N. Bhatt, G. Vishvanatha lyer, T.S. Krishnamurthy, K. Pandit, P.H. Parekh, K.R. Nagaraja, M. Veerappa, P.R. Ramasesh, Vineet Kumar, S.S. Javalai, R.B. Datar, and R.S. Hegde, for the appearing parties.
