BELGAUM DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED Vs. THE COMMISSIONER OF CANE DEVELOPMENT & DIRECTOR OF SUGARS IN KARNATAKA AND ORS.

JUDGEMENT

(1.) THE petitioner is a Bank who states that it has lent loans to the respondent No. 4 towards working capital as against pledge of sugar produced by the 4th respondent and in this regard an agreement dated 30.3.2015 was executed. Now the Tahsildar has seized the sugar by drawing panchanama on 10.2.2015 and 16.6.2015 and the Deputy Commissioner, the 2nd respondent initiated auction to sell the property by public auction in order to pay the farmers towards supply of sugarcane. At this juncture, this petition has been filed with a prayer to quash the panchanama made by the Tahsildar on 16.6.2015 and also to direct the respondents 1 to 3 not to auction the seized sugar and to handover possession of the seized sugar to the petitioner bank.

(2.) IT is submitted by the petitioner that as per the pledge deed executed by the 4th respondent, sugar has to be handed over to the petitioner who has preference over the farmers for the purpose of recovery of arrears of Rs. 30 crores. In case, the second respondent is permitted to auction to pay the farmers, then it is difficult for the petitioner to recover from the 4th respondent.

(3.) THE learned counsel for the respondent Government submits to dismiss this petition. It is an admitted fact that the 4th respondent is due to the farmers for the years 2013, 2014 & 2015 and the Sugarcane Commissioner directed the Deputy Commissioner and Tahsildar to seize the sugarcane which was in possession of the 4th respondent. Accordingly, the Tahsildar has drawn the panchanama on 10.2.2015 and 10.6.2015. When the first mahazar was made, there was no pledge agreement entered into between the petitioner and the 4th respondent and agreement came later only in order to defeat the claim of the farmers. In the circumstances, it is submitted that the agreement between the petitioner and the 4th respondent is a collusive in nature only to defeat the claim of the farmers and hence sought for dismissal of the petition.