( 1 ) THE third respondent-Sri Akshaya Cashew Industries (hereinafter referred to as 'the employer") was provided by petitioner-Vijaya Bank ('bank', for short) with credit facility up to a certain limit. Employer also hypothecated the goods, machinery, etc. , belonging to it to the Bank. The hypothecated property had been duly insured. Though hypothecated, the hypothecated property as such remained in the premises of the employer's factory. Employer availed of the cash credit facility and became due to the Bank several lakhs of rupees. Employer was also due to the first respondent-Regional Provident Fund Commissioner a sum of Rs. 30,217. 75 being the contributions which the employer was liable to pay under the Employees' Provident Funds and miscellaneous Provisions Act, 1952 ('act', for short ).

( 2 ) IN the above background, the property hypothecated by the employer to Bank and that remained in the premises of the factory of the employer was involved in a fire accident on 9-1-1990. The property had been insured with the United India Insurance Company. There was a dispute with regard to actual loss involved on account of the fire accident insofar as cashew stored in the godown was

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