Important Point-Right of crown to recover its dues would prevail over rights of its subject, principle is restricted to debts which are unsecured debts.

1. Heard Mr. B.B. Naik, learned Senior Counsel with Mr. Desai, learned advocate for the petitioner, Mr. Baiju Joshi, learned advocate for the respondent and Mr. Niraj Ashar, learned AGP.

1.1 At the time of hearing learned advocate for the petitioner as well as respondents jointly submitted that notice for final disposal is issued. Therefore the petition may be heard and decided finally today. However, formal order of Rule is hereby passed so that any technical difficulty or objection may not arise.

1.2 Mr. Ashar, learned AGP has waived service of notice of Rule for respondent no.1 and Mr. Joshi, learned advocate has waived service of notice of Rule for the respondent no.2. At the joint request and with consent of learned advocates for the parties, the matter is heard finally.

2. In present petition the petitioner has challenged the order dated 29.11.2012 passed by the respondent liquidator whereby the respondent liquidator has determined order of preference/priority for the purpose of payment to the creditors as part of liquidation process.

3. The relief prayed for by the petitioner reads thus:-

“6(B) The Hon'ble Court may be pleased to issue writ of mandamus or writ in the nature of mandamus or wit of certiorari or writ in the nature of certiorari or any other appropriate writ, order or direction quashing and setting aside the order dated 29.11.2012 passed by the respondent No.2 at annexure-A to this petition.

(C) The Hon'ble Court may be pleased to issue writ of mandamus or writ in the nature of mandamus or any other appropriate writ, order or direction directing the respondent no.2 to re-fix the priority of secure creditors by placing the petitioner at sr. No.1 in the priority list.

(D) Pending final hearing and final disposal of the application, the Hon'ble Court be pleased to stay execution, operation and implementation of the order dated 29.11.2012 at Annexure-A to this petition.

(E) Pending hearing and final disposal of the petition, the Hon'ble Court may be pleased to restrain the respondent no.2 from disbursing the amount of sale proceeds that may be realized from sale of movable and immovable properties of Una Taluka Khedut Sahakari Khand Udhyog Mandali Ltd. (in liquidation).”

4. The relevant facts leading to submission of present petition are thus.

4.1 A Co-operative society functioning in the name and style of Shri Una Taluka Sahkari Khand Udhyog Mandali Ltd. (hereinafter referred to as the “society”) was conducting its operation within its designated area of operation. The said society had availed financial assistance from the petitioner bank. The said society committed default in repayment of the loan availed by it. Therefore, the bank preferred Suit No. 121 of 2010 for recovery of Rs.5,57,46,070/- with running interest at the agreed rate. The said Suit No. 121 of 2010 was decreed by the board of nominees and award dated 1.4.2011 came to be passed. By the said award the board of nominees held that the petitioner bank is entitled to recover Rs. 5,57,46,070/- with running interest @ 17%, till realization. The Board of Nominees also held that the petitioner bank is entitled to recover said amount from the assets mortgaged with the bank. It appears that besides above mentioned financial assistance the petitioner bank had also advanced some other loan to the said society. The said society failed to repay the said loan as well and that therefore the petitioner bank had instituted Lavad Suits No. 122 of 2010 to 126 of 2010. The said Lavad Suits were also decreed by the Board of Nominees in favour of the petitioner bank and award dated 1.4.2011 came to be passed holding inter alia, that the bank is entitled to recover amount claimed in the respective suits. According to the petitioner bank the total principal amount advanced to the said society is to the tune of Rs.10,00,00,000/- and the said amount is not repaid by the said society.

4.2 The petitioner bank has claimed that for availing financial assistance said society h