JUDGMENT :

Bharati Dangre, J.

Since both the writ petitions before us seek an identical relief of terminating the liquidation proceedings in respect of the respondent no.1 Sakhar Karkhana, we have heard both the writ petitions finally by consent of the parties. Writ Petitions are heard along with two Civil Applications i.e. C.A. Nos. 1470/19 and 1471/19 which seek intervention in the petition. Civil Applications for intervention are allowed.

2. We issue Rule and make it returnable forthwith.

3. Respondent no.1 The Karmaveer Kakasaheb Wagh Sahakari Sakhar Karkhana Ltd, at Niphad, District Nasik, as a processing Society has incurred financial losses which resulted into appointment of a liquidator by order under Section 102(1) (a) of Maharashtra Co-operative Societies Act, 1960 (for short 'MCS Act') and since then, the respondent no.1 is being managed by the respondent no.2 liquidator. As per the permission issued by the State Government, the affairs of the respondent no.1 came to be handed over to the respondent nos.6 and 7 and the Karkhana was given on lease in favour of respondent no.7 till October 2012 and further in favour of respondent no.6 till November 2018.

4. The petitioners in Writ Petition No.14127 of 2018 are the Members/Shareholders of the respondent no.1 whereas the petitioners in Writ Petition No.7685 of 2019 are another set of the Member/Shareholders of the respondent no.1. The objection of both the petitioners is common i.e. though the period specified in Section 105 of the Maharashtra Co-operative Societies Act has expired, the liquidation proceedings are continued and it is not permissible to do so in the light of the statutory provision. Apart from this point, the second writ petition pose a challenge to the order dated 19th October 2018 passed by the State Government (Co-operative Department) under Section 157 of the Maharashtra Co-operative Societies Act, thereby extending the period of liquidation from 14th November 2016 to 13th November 2023. The said order is issued in the name and order of the Governor of the State of Maharashtra. The petitioners raise a serious objection to the said order and the learned counsel Shri Pramod Joshi and Shri Surel Shah would argue that in terms of Section 109, liquidation proceedings cannot continue beyond the period of 10 years i.e. from 2006 to 2016. They also question the exercise of power by the State Government under Section 157 of the Co-operative Societies Act. Learned counsel would place reliance on the judgment of the Apex Court in Indian Labour Co-operative Society Limited & Anr Vs. Union of India and Ors, (1999) 6 SCC 141 and a judgment of this Court in case of Dyandeo Mohan Salunkhe Vs. State of Maharashtra, (2013) 4 MhLJ 785 which follows the judgment in case of Indian Labour Co-operative Societies. Both the learned counsel vehemently submit that the exercise of power under Section 157 is misplaced in the factual circumstances and they would submit that since the period of liquidation has come to an end, the respondent no.2 liquidator cannot continue with the administration, and the management of the petitioner no.1 Karkhana is to be returned back to the members who would take appropriate steps for running of the Karkhana. We have also heard learned counsel Shri Patil appearing for the liquidator and learned AGP appearing for the State Government.

Civil Application Nos.1470/19 and 1471/19 have been filed by the labours and the members of the sugar factories who are opposing the petition and submit that the lease agreement entered between liquidator and respondent no.6 expired on 31st June 2018 and they would urge to uphold the decision taken by the State Government to extend the period of liquidation in light of a hope that the Karkhana would be revived in future.

5. We have perused the writ petitions, application for intervention and affidavit in reply tendered by the respondent no.2 as well as respondent nos.6 and 7 and the affidavit placed on record by respondent