Supreme Court of India

Central Bank of India v. Siriguppa Sugars & Chemicals Ltd. & Ors.

Neutral citation
Reported as [2007] 8 S.C.R. 898
Bench T Arun Chatterjee and P.K. Balasubramany An JJ.
Decided 7 August 2007
Status Distinguished

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

6 Supreme Court benches have cited this judgment.

What the Court ordered

We hold that the appellant as the pawnee, is entitled to the amount in satisfaction of its debt to secure which, the goods had been pawned and to appropriate the sale proceeds towards the debt due and only if there is surplus, to make it E available for disbursal to the Cane ·Commissioner and to the Labour Commissioner.

Judgment, page 11

From the headnote

Contract Act, I872-Sections 173 and 176-Rights of pawnee on sale .-;;f proceeds of pawned goods-Sugar Company obtained loan from Bank-pawnee c by pledging stocks of sugar and loan not repaid-Interim order by High Court directing disbursal of certain amounts realised on sale proceeds for satisfying claim of cane growers and employees of the Company-Interference with-Held: Pawnee has right to retain goods pledged for payment of debt including interest on debt and all necessary expenses incurred by it-Rights of the bank as pawnee over pawned sugar prevailed over the claims of cane growers and

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