- (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: (i) issue a writ, order or direction in the nature of mandamus commanding the respondents not to auction the goods i.e. (1) buffer stock of sugar (2) levy suger 93) free sale sugar (4) molasses and (5) consumables, which are under lock & key of the petitioner Bank and have been pledged as securities by the respondent No. 6. (ii) issue a writ, order or direction in the nature of mandamus directing to the respondents not to give effect the auction proceedings initiated in pursuance of the recovery certificate dated 20.4.2011 issued by respondent No. 2. (iii) issue any other suitable writ, order or direction, as this Hon'ble Court may deem fit and proper under the facts and circumstances of the case.
(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.;