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1998 Supreme(Kar) 52

G.PATRI BASAVANA GOUD
STATE BANK OF MYSORE, B. H. ROAD, SHIMOGA – Appellant
Versus
PROVIDENT FUND COMMISSIONER, BANGALORE – Respondent


Advocates:
HARIKRISHNA S.HOLLA, S.G.BHATT, S.HOLLA

G. PATRI BASAVANA GOUD, J.

( 1 ) THE third respondent-m/s. Devi sugars limited (as at annexure-a), pledged the sugar and has availed cash credit facility from the petitioner-state bank of mysore to the extent of Rs. 20 crores. The said third respondent has also fallen in arrears in the matter of payment of provident fund contributions under the employees' provident funds and miscellaneous provisions act, 1952 ('act', for short ). Respondents 1 and 2, namely, the provident fund commissioner and the recovery officer, therefore proceeded to attach the sugar of the third respondent so pledged to the petitioner in the process of recovering the provident fund contributions. In this writ petition under article 226 of the constitution, the petitioner-bank urges that it has got priority over the claim of respondents 1 and 2 under the act. The bank contends that the attachment of the godowns wherein the sugar bags are there, effected by respondents 1 and 2 in respect of the said provident fund arrears, is illegal. In this writ petition, it seeks a direction in that regard.

( 2 ) SRI hari krishna s. Holla, learned counsel for respondents 1 and 2, relying upon Section 11 (2) of the ACT urges th










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