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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
AMIT BORKAR
Amritlal P. Shah – Appellant
Versus
TJSB Sahakari Bank Limited, through it’s Officer – Respondent
JUDGMENT :
AMIT BORKAR, J.
1. By judgment and order dated 11 November 2025, the writ petition filed by Respondent No.1 was allowed and the order dated 27 December 2021 passed by the Maharashtra State Cooperative Appellate Court was set aside. Consequentially, the money decree dated 25 October 2017 passed in favour of Respondent No.1 and against the present Petitioner stood restored. The Petitioner, who was the original respondent in the writ petition, has preferred the present review petition seeking review of the judgment dated 11 November 2025. The sole ground urged in the review petition is the order dated 3 November 2025 passed by the learned Single Judge of this Court at the Nagpur Bench in Washim Urban Cooperative Bank Ltd. v. Girishchandra , in Writ Petition No.3783 of 2021 dated 03.11.2025 (Nagpur Bench) wherein it has been observed that a cooperative bank is a bank within the meaning of the Recovery of Debts and Bankruptcy Act, 1993(“RDB Act”)and the Cooperative Courts under the Maharashtra Cooperative Societies Act, 1960(“MCS Act”) are barred from entertaining applications for recovery of debts exceeding Rupees Ten Lakhs.
2. The Respondent Bank calls in question the correct
The jurisdiction of cooperative banks under debt recovery laws remains ambiguous, necessitating authoritative clarification on their status within the Recovery of Debts Due to Banks and Financial Ins....
Cooperative banks are categorized under the Banking Regulations Act, 1949, thereby requiring debt recovery through federal legislation and not state mechanisms.
Cooperative banks operate under state law for incorporation and management, while banking activities are regulated by central law, establishing a division of legislative competence.
High Court cannot in exercise of its power under Article 226 of the Constitution of India can direct the bank to positively consider the benefit of one time settlement to writ petitioner.
(1) Recovery of loan amount – There is no provision in RDB Act by which remedy of a civil suit by a defendant in a claim by bank is ousted, but it is matter of choice of that defendant.(2) There is n....
Point of Law : Section 74A of 1969 Act was incorporated to ensure that benefits of DICGC Act, 1969 were extended to Co-operative Banks as well.
The court ruled that cooperative banks fall within the definition of 'Financial Establishment' under the MPID Act, thereby affirming the Act's applicability to such entities despite their regulation ....
The court established that State legislation under the Maharashtra Co-operative Societies Act can apply to banking cooperatives without infringing on Central jurisdiction, affirming the dual regulato....
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