1. This Writ Petition is filed challenging the Judgment and Order dated 16/3/2002 passed by the Member, Co-operative Appellate Court, Aurangabad in Appeal No. 61 of 2001.

2. The background facts of the case as disclosed in the petition are as under.

The Respondent no. 1 herein advanced loan of Rs. 8,00,000/- in favour of petitioners on monthly instalment of Rs. 10,500/- with interest @ 11 % per annum. The petitioners herein executed hypothecation deed in favour of Bank. The rate of interest was not mentioned in the said deed. The petitioners herein requested the Respondent no. 1 - Bank to give him balance statement and statement of accounts, but, the Bank initially avoided to give him balance statement. The respondent no. 1 issued notice through respondent no. 2 to start proceeding under Section 101 of Maharashtra Co-operative Societies Act, 1960 (for short ‘the Act’). The petitioners in reply to said notice, contended that he paid huge amount in the month of March, 1996 and still the Bank is intending to initiate the proceedings under Section 101 of the Act and the balance of Rs. 6,86, 531.41 Ps. is shown in the notice issued to him. According to the petitioners, who are original disputants, the Bank in spite of payment of huge amount, has intended to initiate proceedings under Section 101 of the Act for recovery of huge amount and, therefore, the petitioners filed dispute for settlement of accounts and issue of perpetual injunction.

3. The Respondent no. 1 herein filed Written Statement at Exh. 6 and denied the allegations. The Co-operative Court framed necessary Issues and by Judgment and Order dated 14/3/2001, directed the Bank to settle the loan account of disputant and further directions were also issued.

Being aggrieved by the Judgment and Order of the Co-operative Court, Nanded dated 14/3/2001, the respondent no. 1 herein filed Appeal No. 61 of 2001. The Co-operative Appellate Court, Aurangabad by his Judgment and Order dated 16/3/2002, allowed the Appeal and the Judgment and Award passed by the Co-operative Court came to be set aside.

Being aggrieved by the Judgment and Order of the Member, Co-operative Court, Aurangabad in Appeal No. 61 of 2001, this Writ Petition is filed.

4. Learned counsel appearing for the petitioners invited my attention to the Judgment and Order passed by the Appellate Co-operative Court, Aurangabad and submitted that the appellate Co-operative Court allowed the Appeal holding that the Co-operative Court has no jurisdiction to entertain the dispute filed by the petitioners. The learned counsel further submitted that the Appellate Co-operative Court has relied on the Judgment of this Court in case of Bhusawal People’s Co-operative Bank Ltd. V/s Vijay Ramdas Rane and others in Writ Petition No. 2277 of 2001 and held that Co-operative Court has no jurisdiction once the Certificate under Section 101 of the Act has been issued by the Respondent – Registrar. The learned counsel further submitted that in the present case, the dispute was filed on 18/10/1996 being Dispute No. 373 of 1996 by the present petitioners. The recovery certificate under Section 101 of the Act was issued by the Registrar on 28/10/1996. On 14/3/2001, Co-operative Court decreed the dispute. Thereafter, on 16/3/2002, Appeal filed by the respondent no. 1 - Bank came to be allowed.

The learned counsel appearing for the petitioners submitted that the reliance placed by the appellate co-operative Court on unreported Judgment of this Court referred above, is wholly misplaced as much as in that case a certificate under section 101 of the Act was issued and this Court was dealing with different facts situation in the said case, however, in the instant case, when the dispute was filed by the present petitioners before the Co-operative Court, no recovery certificate under section 101 of the Act was issued by the Registrar. According to the learned counsel, the ratio laid down by this Court in case of Basaveshwar Co-operative