JUDGMENT

Tarun Chatterjee, J.—

1. Leave granted.

2. This appeal is filed against an interim order dated 17th of March 2008 in Writ Petition No. 138 of 2008 passed by the High Court of Bombay at Goa whereby the High Court admitted the Writ petition filed by Respondent No.1 and stayed the operation of order dated 16th of August 2007 passed by the Registrar of Co-operative Societies, Goa.

3. The relevant facts leading to the filing of this appeal as emerging from the records of this case have been succinctly referred here for the better understanding and determination of the instant appeal.

The MAPUSA Urban Cooperative Bank of Goa Ltd.(Respondent No.1, hereinafter referred to as “the Bank”) had extended credit facility of Rs.20 lacs to a proprietary firm belonging to one of the Directors of the Woods Beach Hotel Ltd. (hereinafter referred to as “the appellant”) and an immovable property of the appellant namely “Soranto” was allegedly mortgaged to cover the aforesaid credit facility. The appellant was not the principal borrower. The name and constitution of the appellant company was changed and notified to the bank in 1994 but the notice did not mention about the change of shareholders. The Bank initiated the proceedings for recovery of the due amount before the Asst. Registrar (Respondent No.3) of the Multi State Cooperative Societies under section 74 of The Multi State Cooperative Societies Act, 1984 wherein the appellant was impleaded in the capacity of third party mortgagor. The proceeding was initiated in the old name of the appellant company and it was alleged by the appellant that no notice was served on the appellant.

4. After obtaining an award from the Assistant Registrar, the Bank filed execution application on 23rd of September 1999 for a sum of Rs. 52.35 lacs wherein it sought attachment of the immovable property of the appellant. After being aware of the award, the appellant tried to settle the matter with the Bank and paid Rs. 6.63 lacs to the Bank in the process. However the recovery officer of the bank went ahead with the sale of the mortgaged immovable property and due to non-availability of buyers eventually the Bank itself purchased the property for Rs.97,04,222/- and the appellant alleged non-service of notice regarding the same.

5. In July 2004, the appellant was forcibly dispossessed from its property. Aggrieved by the said action, the appellant preferred an appeal on 7th of December, 2005 before the Registrar of Cooperative Societies (Respondent No. 2 herein) as according to them the property was worth more than Rs. 10 Crores and no notice was given to them during the entire process. The appellant had also filed a Writ Petition no. 378 of 2004 in the High Court of Bombay at Goa seeking orders to restore the possession of the property and to direct the bank to deal with the property after giving due notice to the appellant. The High Court rejected the Writ petition by its order dated 29th of March 2005. Against this, the appellant filed Special Leave Petition No. 17486 of 2005 in this Court, which was dismissed with the observation that the appeal was filed in the Court of Registrar, Multi State Cooperative Societies, Goa.

6. The Registrar, during the pendency of the appeal, granted an interim stay of operation of the order of the Assistant Registrar and directed stay of the sale of the property in question. By an order dated 16th of August, 2007, the Registrar had set aside the Judgment of Assistant Registrar and directed the following :-

“(a) The award/Judgment dated 26th August, 1995 passed by the Asst. Registrar against the Appellant Company is set aside subject to the appellant company making payment of Rs. One Lac as cost to the Respondent Bank within a period of two weeks.

(b) The Asst. Registrar is directed to re-hear the case and decide the same within 6 months.

(c) The appellant company is directed to deposit with the Asst. Registrar the amount of the decretal dues as on date of this order within 4