JUDGMENT :

SANDEEP V. MARNE, J.

A. The Challenge

In these petitions, we are tasked upon to decide the competing claims of the Petitioner-Bank towards interest on credit facilities extended to the society which has gone in liquidation during period of its liquidation and that of the workers of that society for their unpaid wages. Since the amount available with the official assignee after monetization of assets of the society is limited, both parties stake priority for their respective claims over that amount. Petitioner-Bank challenges the order passed by State Government rejecting its claim for interest during period of liquidation of the society. It also challenges the order passed by the Assistant Commissioner of Labour sanctioning the amount of wages to 322 workers of the society. Both parties claim priority to receive the amount available with the official assignee.

B. FACTS IN WRIT PETITION NO. 330 OF 2011:

2. Latur Co-operative Oil Industries was a registered Co-operative Society (in short ‘the society’) under the provisions of the Maharashtra Co-operative Societies Act, 1960