M/S. LAXMI SUGAR & OIL MILLS LTD., HARDOI AND ANOTHER Vs. DISTRICT MAGISTRATE/COLLECTOR, HARDOI AND ANOTHER

JUDGEMENT

(1.) We have heard learned Counsel for the petitioner and learned Additional Chief Standing Counsel.

(2.) Petitioner is a company and was engaged in manufacturing of sugar in the name and style of Laxmi Sugar and Oil Mill Ltd. Hardoi. After sometime in Dec., 1979 certain sugarcane transporters threatened to go on strike because dues were not cleared by the petitioner's Sugar Mill. As the strike would have created problems for the district administration, the District Administration intervened in the matter. According to the petitioner, it was resolved in the meeting of management of the Sugar Mill with the district administration that the petitioner shall deposit certain amount in the shape of FDR and the said amount would be paid to transporters, if petitioner fails to clear the dues of the Cane Transporters.

(3.) It is in these circumstances that the petitioner-Company deposited the amount [Rs. 10 lacs] in the Allahabad Bank. Later on, the said money was transferred by the district administration from Allahabad Bank and deposited in Account No. 3375 of Hardoi District Co-operative Bank. It is said that on 1.4.1981, the amount was withdrawn from the said Cooperative Bank and was deposited in main branch of the Post Office, Hardoi in Saving account No. 255448 (Annexure-4) in the name of Petitioner's Company by the District Magistrate, Hardoi.