PUNJAB NATIONAL BANK Vs. STATE OF U P

JUDGEMENT

(1.) We have heard Shri K.L. Graver assisted by Shri Ramesh Singh for the petitioner-bank. Dr. Y.K. Srivastava, Standing Counsel appears for the State respondents. Shri K.N. Tripathi assisted by Shri Ashish Mishra appears for respondent No. 6. Shri Ravindra Singh has filed an impleadment/intervening application on behalf of Co-operative Cane Development Union Padrauna, District Kushi Nagar.

(2.) The Punjab Nation Bank has approach this Court for the following reliefs:

(3.) It is submitted by Shri K.L. Graver appearing for the Punjab National Bank that under the Deed of Hypothecation dated 29.12.2005 M/s J.H.V. Distilleries & Sugar Mills Ltd has hypothecated the entire stocks of raw material, stock in process finished goods of crystal sugars in bags/brown sugar stored in godown situated at Padrauna (Kushinagar) for a cash credit limit of Rs. 40 crores. He submits that the agreement is still operative and that with the total commitment of Rs. 27.39 crores of the sugar Mill to the Bank, the District Magistrate has no authority to attach the stocks and to sell them for recovery of the sugar-cane dues and other statutory dues, which are to be paid to the farmers and cane unions, as balance of price of sugarcane, commission to cane unions and interest.