( 1 ) THIS matter has come before us on a reference made by a Bench as in its opinion there was conflict of opinion in two Division Bench decisions of this Court rendered in Anupam Sari Centre v. Collector , 1999 (1) AWC 237 and M/s. Lal and Kumar v. State of U. P. , AIR 1998 All 156 : (1998 All LJ 987) and also Writ Petition No. 22507 of 1988 (M/s. R. K. Brothers v. Collector, Kanpur ).

( 2 ) THE case set up by the petitioner is that she is carrying on business of selling and supplying lubricating oil, mobil, grease and break oil in retail and whole-sale basis in the name and style of M/s. Sharda Automobiles Ltd. which is a sole proprietorship concern. In order to meet her capital requirements, the petitioner approached Union Bank of India, Pandeypur Varanasi, for financial assistance, which sanctioned to her a cash credit (Hypothecation) Limit facility up to Rs. 25,000 on 23/06/1992 and the limit was enhanced to Rs. 2 lakhs on 16/08/1995. The amount advanced from time to time was repayable with interest @ 14 per cent per annum with quarterly rests or such other rate of rates which may be fixed and notified as per the guidelines issued by the Reserve Bank of Indi