ANURAG TUBES PRIVATE LIMITED Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Punjab National Bank filed a suit for recovery of Rs. 1,90,00,876/- under Order 34, Code of Civil Procedure, against the defendant- firm. During the pendency of suit, an application under Order 38, rule 5, C.P.C. was filed by the plaintiff. Defendant also filed an application under Order 39, rule 6, C.P.C. Both the applications were decided vide the impugned order because of the statement given by learned Counsel for the parties to the suit. Vide the impugned order, the defendant was allowed to lift the pledged raw material in instalments worth Rs. 4 lakh each against cash payment so as to enable the defendant-firm to manufacture tubes etc. The quantity of the released raw material was to be according to its value as in the books of plaintiff-bank which was assessed at the time of pledging thereof. Another prayer made by the Bank that the entire material be weighed before the defendant-firm could lift the material against cash payment, was accepted. The order has been challenged by the defendant firm as well as by the Bank by way of C.R. No. 2626 of 1991 and C.R. No. 2585 of 1991 respectively.

(2.) After hearing learned Counsel for the parties, I am of the view that order dated 30.4.1991 passed by Sr. Sub Judge, Phiwani, requires modification. In order to secure the interest of the Bank, it will be in the fitness of things of the defendant-firm is allowed to lift the material against cash payment as allowed by the trial Court, but pledged raw material should be allowed to be lifted by the plaintiff-bank not at the book value, but at the market value, i.e. at the value on which raw material is being sold by Steel Authority of India Limited. As far as prayer of defendant-firm with regard to weighing of material is concerned. I find that no purpose will be served in weighing the raw material, and it the order of the trial Court for weighing the material is allowed to stand, it will involve a lot of expenditure to be borne by the defendants. However, lest the interest of the bank may suffer, the Bank is allowed to depute one of its employees for the purpose of guarding the material lying in the premises of defendant-firm. With this modification, revision petition is disposed of. The parties are left to bear their own costs. DD73 Ordered accordingly.