( 1 ) SHORT but an interesting question of law that emerges for adjudication in this appeal is : Whether the right to recover the money lent under a contract by a nationalised bank to a sugar factory is subject to the provisions of Section 19 (4) of the Andhra pradesh Sugarcane (Regulation of supply and Purchases) Act, 1961 (Act XLV of 1961) hereinafter referred to as "the act and Rule 39-A made thereunder though not engrafted therein.

( 2 ) TO decide this point, shortly stated the facts not in dispute are : The appallant, Punjab National Bank, its branch at Madras, hereinafter referred to "the Bank" entered into an agreement with the Challapalli Sugars Limited, the first respondent, hereineftar called "the factory", to extend several monetary facilities including grant of key-loan on the factory pledging the sugar produced or to be produced by it as security for due discharge thereof. Pursuant thereto, the factory, executed pledge-documents and the bank lent several sums. As and when the sugar was produced by the factory, it was stocked in the godowns kept under the custody of the bank. The sugar thus stored stands first charge for the bank to realise the amounts len