STATE BANK OF PATIALA Vs. ZILA ADHIKARI

JUDGEMENT

(1.) Petitioner before this court is a subsidiary bank of the State Bank of India. The Bank is stated to have entered into a loan agreement with the respondent Oswal Industries Ltd., Nawabganj, Bareilly, through its General Manager of providing credit facility to the tune of Rs.15 crores against the Warehouse Receipts of National Bulk Handling Corporation.

(2.) According to the petitioner bank, necessary agreement for advance against pledge stocks of sugar stored in the warehouse dated 18.12.2010 was also executed between the parties.

(3.) The Sugar Mill has defaulted in payment of the dues of the farmers in the last crushing season. Therefore, the State authorities have initiated proceedings for recovery of the money from the Sugar Mill as arrears of land revenue by attachment of stocks of sugar and its sale.