BANK OF BARODA Vs. COLLECTOR OF INDORE

JUDGEMENT

(1.) THE question which falls for determination in this case is as to what will be the effect of a legal seizure and confiscation under Section 6A of the Essential Commodities Act, 1955, over the rights of a bank to whom the goods seized and confiscated are pledged under a cash credit agreement.

(2.) THE short facts giving rise to this petition under Articles 226 and 227 of the Constitution of India are these :

(3.) ON March 29, 1985, the Collector, respondent No. 1, passed the order of confiscation of the stocks of soya bean holding that the petitioners were also knowingly or unknowingly a party to the breach of law. A copy of the order of confiscation has been marked as annexure 'I'. The petitioners thereupon filed an appeal to the State Government, respondent No. 3. The petitioners' appeal was, however, rejected by the State Government by order dated February 18, 1986, a copy of which has been marked as annexure 'J'. The petitioners came to know for the first time through a letter dated July 2, 1986, issued by respondent No. 1 which was served on the petitioners on July. 4, 1986. A copy of the said letter has been marked as annexure 'K'.