Patna Court April 1963 Judgments

State of Bihar Vs. Bank of Bihar Ltd.

Court: Patna

Reported in: AIR1963Pat344

Ramratna Singh, J.1. This appeal has been preferred by the State of Bihar against the decision of the Fourth Additional Subordinate Judge, Patna, granting a decree for a sum of Rs. 93,910/10/9, together with interest at 6 per cent per annum from the date of the institution of the suit to the Bank of Bihar Ltd., the sole plaintiff, in the suit of which this appeal arises.2. The facts now admitted are these : Under an arrangement with the South Bihai Sugar Mills Ltd., defendant No. 2, that is, the Jagdishpore Zamindary Co. Ltd. (hereinafter referred to as the Company) came into possession of the manufacturing section of the Mills at Bihta from the beginning of the crushing season of 1946-47. Defendants 3 to 5 were the Directors of the Company. Early in 1947, the Company entered with the Bank into a cash credit agreement, according to which tha company was to pledge with the Bank the entire stock of sugar manufactured by them in the Mills and to take advances of money from the Bank under ...