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IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT NAGPUR
Vinay Joshi, J.
Malkapur Urban Co-operative Bank - Appellant
Versus
Vishal Baburao Phephale & Ors. - Respondents
Writ Petition No. 4432 of 2021
Decided On : 02-11-2021
Recovery - Maharashtra Co-operative Societies Act - The court stayed the execution and implementation of an order authorizing the borrower to remove crops, citing Rule 107(5)(e) of the Maharashtra Co-operative Societies Rule.
Fact of the Case:
The Petitioner Bank filed an application for a recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act. The District Magistrate issued the recovery certificate and handed over possession of the attached property to the petitioner. However, the District Magistrate later passed an order authorizing the borrower to remove the crops, which the petitioner contested, arguing that the District Magistrate had no jurisdiction to review his own order.
Finding of the Court:
The court stayed the execution and implementation of the impugned order dated 22.10.2021, citing Rule 107(5)(e) of the Maharashtra Co-operative Societies Rule, which mandates that after taking possession, the recovery officer has to deal with the standing crop. The court issued notice to the respondents returnable after two weeks, with the learned AGP waiving service of notice for respondent No. 16. Private service was also permitted in addition to the regular mode of service.
Issues: The issue revolved around the jurisdiction of the District Magistrate to review his own order and the proper procedure for dealing with the standing crop after possession is taken under the Maharashtra Co-operative Societies Rule.
Ratio Decidendi: The court's decision was influenced by Rule 107(5)(e) of the Maharashtra Co-operative Societies Rule, which outlines the procedure for dealing with the standing crop after possession is taken.
Final Decision: The court stayed the execution and implementation of the impugned order dated 22.10.2021 and issued notice to the respondents returnable after two weeks, with additional provisions for service.
JUDGMENT
Vinay Joshi, J. - Heard.
2. In pursuance of the application filed by the Petitioner Bank, recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act was issued. In turn, the District Magistrate has handed over possession of the attached property for which documents are produced. Learned counsel for the petitioner would submit that despite petitioner put in possession, the District Magistrate has passed impugned order dated 22.10.2021 authorizing the borrower to remove the crops. It is the submission that the District Magistrate has no jurisdiction to review his own order.
3. The petitioner would submit that in terms of Rule 107(5)(e) of the Maharashtra Co-operative Societies Rule, after taking possession, recovery officer has to deal with the standing crop. Having regard to said facts, execution and implementation of the impugned order dated 22.10.2021 is hereby stayed till further order.
4. Issue notice to the respondents returnable after two weeks. Learned AGP waives service of notice for respondent No. 16.
5. In addition to the regular mode of service, private service is permitted.
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