IMPORTANT POINT
An interim liquidation order under the Maharashtra Cooperative Societies Act is ineffective unless properly communicated, ensuring the rights of the cooperative society are protected.

JUDGMENT :

(Amit Borkar, J.) :

1. Rule. By consent of counsel for the parties and at their request, both the writ petitions were taken up for final hearing.

2. Both these writ petitions have been set down for hearing together at the request of counsel as both involve common question of law and fact. In Writ Petition No.14558 of 2023, which came to be argued as a lead petition, the petitioner seeks to challenge the decision dated 10 November 2023 cancelling agreement and tender process granting work order for transportation of ration food grains to fair price shops under the target-oriented public distribution system. Petitioner also seek a declaration that agreement dated 28 July 2023 entered into with the petitioner by the respondents is in force and a further direction to issue work order/delivery orders in pursuance of agreement dated 28 July 2023.

3. In Writ Petition No.13546 of 2023, the petitioner/society seeks relief in the form of a direction to Respondent Nos.1 and 2 to issue a work order as per representations dated 18 September 2023 and 16 October 2023.

4. In order to appreciate the factual background, some facts can be culled out from Writ Petition No.14558 of 2023. For the sake of convenience, the parties are referred to as they are arrayed in Writ Petition No.14558 of 2023.

5. The petitioner is the Chairman of Respondent No.5 – cooperative society, who has filed the writ petition in a representative capacity on behalf of Respondent No. 5 – society. Respondent No.1 had published detailed guidelines vide Government Resolution dated 15 November 2021 regarding a target-oriented public distribution system for transportation of ration food grains to fair-price shops. The resolution provides guidelines for conducting an online tender process for the allotment of work contracts for transporting such goods. Accordingly, Respondent No. 5 – society participated in the tender process and by Government Order dated 21 May 2023, Respondent No. 5 – society was declared L-1 bidder for District Nashik. Respondent No.1 vide letter dated 8 June 2023 informed Respondent No.5 accordingly and by communication dated 26 June 2023 called upon Respondent No.5 to comply with certain conditions such as furnishing bank guarantee, execution of agreement, etc. On 26 June 2023, the petitioner furnished bank guarantee to the tune of Rs.3,45,40,050/-. Respondent No.3, on 4 July 2023, informed the petitioner about executing the registered agreement. Accordingly, on 28 July 2023, Respondent No.2 executed an agreement with the petitioner in his capacity as Chairman of Respondent No. 5 – society.

6. Respondent No.5 – society, by communication dated 9 August 2023, requested Respondent No.2 to issue the work order in furtherance of the agreement dated 28 July 2023. Respondent No. 5 – society on 24 August 2023 paid Rs.6,90,900/- towards stamp duty in pursuance of the order dated 17 August 2023 issued by the Collector of Stamps in respect of the agreement dated 28 July 2023. However, according to the petitioner, no work order was issued. Therefore, Respondent No.5 was constrained to file Writ Petition No.13546 of 2023 seeking relief of issuance of the work order in favour of Respondent No.5 – society.

7. During the pendency of the writ petition, the petitioner learnt about passing of the order of liquidation in the exercise of power under Section 102 of the Maharashtra Cooperative Societies Act, 1960 (MCS Act), which, according to the petitioner, was never served on the Respondent No. 5 Society. The petitioner, therefore, on 9 November 2023, preferred Appeal under Section 152 of the MCS Act bearing Appeal No.413 of 2023 and the appellate authority, by order dated 9 November 2023, granted a stay to the final order of liquidation passed by the District Registrar, K-West Ward, Mumbai till next date of hearing, i.e., 21 December 2023. However, before such an order was communicated to Respondent No.1, Respondent No.1, on 10 November 2023, decided to cancel allotment