Judgment 1. The only issue in the present Letters Patent Appeal is on the contention of the Bihar State Financial Corporation that they may not provide a loan without fortifying it by the security. 2. Providing a loan by a financial institution or a Bank is basically a contract. No financial institution or Bank in the normal circumstances will grant a loan unless it is fortified in addition by a contract of guarantee or indemnity. Unless, in a free market economy there is a credit between the customer and the Bank or the financial institution, loans cannot be had for the askance. 3. In the writ petition the Bihar State Financial Corporation in effect, faces a direction that a loan be provided but without being protected by a collateral security. 4. Counsel for the respondents Mrs. Kiran Bala Sahay mentions that the original contract in agreement made no provision that the loan which was to be provided as part of a scheme to encourage the unemployed to set up industry had to be fortified by a collateral security. The contention is that if a collateral security is to be provided then it would be against the spirit of the original agreement. 5. The incentive which would be provided as loan but without a security, was a policy of the Government. The Government may formulate a policy. This is one aspect of the matter. 6. But as the nation is witnessing a changing pattern to a new economic order the High Court cannot direct the Bihar State Financial Corporation that it must provide a Bankers loan and yet may not protect itself without any security. Such a direction would be against equity and law both. The fact that the State may like to guarantee such loans or fortify the Bihar State Financial Corporation is a matter between the State and the Bihar State Financial Corporation. 7. In case, the respondent is really interested in receiving the loan then it may apply to receive the loan even now. But the Court is afraid, the loan will need to be backed by a security as this would protect the Bihar State Financial Corporation. 8. Regard being had to underlying circumstances and the record that there are outstanding dues which have not been paid by the respondent, this order is being made in the facts and circumstances of the present case. 9. 8. Regard being had to underlying circumstances and the record that there are outstanding dues which have not been paid by the respondent, this order is being made in the facts and circumstances of the present case. 9. The appeal succeeds.