Bihar State Financial Corpn. & Ors vs M/S. Chemicot India Pvt. Ltd. & Ors

The Supreme Court upheld the Patna High Court's decision directing the State Financial Corporation to disburse a sanctioned loan of Rs. 15 lakhs to the respondent, a small scale industrial unit, despite the absence of a D.G.T.D. Registration Certificate, which the Corporation claimed was necessary. The Court found that the Corporation had waived its right to insist on this certificate by registering the loan agreement. The Court emphasized that the Corporation's refusal to disburse the loan was unjustified, given the circumstances and the respondent's ability to commence production if the loan was provided.