Since there was default in repayment of the amount due under the said cash credit account the State Bank of India instituted a suit in Suit No.
136 of 1982 and the order passed in C.M.A. No.
The State Bank of India, therefore, impleaded Raghubir Singh and the Union of India also as defendants Nos.
The High Court allowed the revision petition holding that the trial of suit in so far as relief No.1 namely the prayer for decree for Rs.
2 to 5 M s. Govind Ram and Brothers, Shri K.G. Saksaria, Shri G.L. Vaid and Shri R.K. Saksaria had agreed to be the guarantors for the repayment of any amount due from respondent No.1 under the said cash credit account.
In the meanwhile by virtue of an order made by the Central Government under the Sugar Undertakings Taking over of Management Act, 1978 Act No.49 of 1978 hereinafter referred to as the Act the sugar undertaking belonging to respondent No.1 had been taken over by the Central Government and one Raghubir Singh had been appointed as the Custodian of the said undertaking.
1 to 5 who were described as defendants Nos.1 to 5 in the plaint praying for a decree in terms of order 34, rule 4 C.P.C. and further companysequential directions.
1 to 5 was companycerned was liable to be stayed by virtue of the provisions of the Act.
Aggrieved by the said decision of the trial companyrt, respondent No.1 filed a revision petition in Civil Revision No.
After hearing the parties the trial companyrt found that it had jurisdiction to try the suit as the properties given as security were situated within its jurisdiction and that there was numberimpediment to proceed with the trial numberwithstanding the fact that the management of the mill of respondent No.1 had been taken over by the Central Government under the Act.
The High Court was of opinion that the order needed numberfurther clarification.
136 of 1982 before the High Court of Allahabad.
From the Judgment and Order dated 25.5.1984/22.2.1985 of the Allahabad High Court in C.M.An.
No.644 M of 1984 in R. No.
That application was rejected by the High Court by its order dated February 22, 1985 holding that the provisions of order 34, rule 4 C.P.C. were quite clear and it was for the companyrt below to proceed in accordance with law.
S. Chitale and S.A. Shroff for the Appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
Respondents Nos.
644 M of 1984 the State Bank of India has filed this appeal by special leave.
Aggrieved by the others passed on revision in Civil Revision No.
The Judgment of the Court was delivered by VENKATARAMIAH, J. These appeals by special leave are filed against the order dated May 25, 1984 passed by the High Court of Allahabad in Civil Revision No.
The appellant, the State Bank of India, had allowed cash credit facility to M s. Saksaria Sugar Mills Ltd., respondent No.1 herein, on the security of the goods produced at the sugar factory belonging to respondent No.1.
6 and 7 in the suit.
569 70 of 1986.
136 of 1982 and the order dated February 22, 1985 in C.M.A. No.644 M of 1984 on the file of that Court.
Yogeshwar Prasad and S.R. Srivastava for the Respondents.
Respondent No.1 had also deposited in the Bombay office of the State Bank of India on February 2, 1962 by way of equitable mortgage the title deeds of its immovable properties to secure the amount advanced under the said cash credit facility.
In the suit respondents Nos.
136 of 1982.
18 of 1980 on the file of the Additional District Judge, Gonda for recovery of a sum of Rs.54,89,822.99 as on March 6, 1980 against respondents Nos.
1 to 5 pleaded inter alia that the trial companyrt had numberterritorial jurisdiction to try the suit and that the suit was number maintainable and at any rate the suit was liable to be stayed in view of the provisions of the Act.
The defendants filed an application before the trial companyrt on September 6, 1982 requesting it to decide first the above two issues relating to its jurisdiction and its companypetence to proceed with the suit.
The trial companyrt had framed two issues arising out of the above pleas.
54,89,822.99 against respondent Nos.
