Important Point—DICGC shall be entitled to first preference over payment/amount available with concerned official liquidator of concerned bank in liquidation.

M.R. SHAH, J.

As common question of law and facts arise in this group of Letters Patent Appeals and as such they arise out of the impugned common judgment and order passed by the learned Single Judge dated 23/02/2010 in Special Civil Application No.4260 of 2009 and Special Civil Application No.6978 of 2009, all these appeals are decided and disposed of by this common judgment and order.

2. Feeling aggrieved and dissatisfied with the judgment and order passed by the learned Single Judge in SCA No.4260 of 2009, the liquidator of the Visnagar Nagrik Cooperative Bank Limited (under liquidation) has preferred the present Letters Patent Appeal No.1300 of 2010.

2.1 Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Single Judge in SCA NO.4260 OF 2009, the original petitioner-Deposit Insurance and Credit Guarantee Corporation (herein after referred to as DICGC) has preferred the LPA No.906 of 2010. Similarly, feeling aggrieved and dissatisfied with the judgment and order passed by the learned Single Judge in SCA No.4260 of 2009, the liquidator of Ahmedabad District Cooperative Bank Ltd., and the liquidator of Gujarat State Cooperative Bank Ltd., and the liquidators of the Anand Peoples Cooperative Bank Ltd., (in liquidation) and the liquidator of the Petlad Commercial Cooperative Bank Ltd., (in liquidation) have preferred the respective LPA No.1306 of 2010; LPA No.1307 of 2010; LPA No. 238 of 2013 and LPA No.239 of 2013.

2.2. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Single Judge in SCA No.6978 of 2009, the respective liquidators of Ahmedabad District Cooperative Bank Ltd., (in liquidation), the liquidator of General Cooperative Bank Ltd., (in liquidation), the liquidator of Gujarat State Cooperative Bank Ltd., (in liquidation) as well as original petitioner–DICGC have preferred the respective LPA Nos.1305 of 2010, LPA No.1755 of 2010, LPA No.1304 of 2010 and LPA No.1399 of 2010.

2.3. Feeling aggrieved and dissatisfied with the judgment and order passed by the learned Single Judge in SCA No.7617 of 2009, DICGC as well as the Ahmedabad Mahila Nagarik Sahakari Bank Limited have preferred the Letters Patent Appeal No.228 of 2010 and Letters Patent Appeal No.2458 of 2009 respectively.

3. The facts leading to the present Letters Patent Appeals in nutshell are as under

3.1. That the original petitioner-Deposit Insurance and Credit Guarantee Corporation (herein after referred to as DICGC), a statutory Corporation governed by the provisions of Deposit Insurance and Credit Guarantee Corporation Act, 1961 (herein after referred to as Act 1961) preferred the aforesaid two Special Civil Applications before this Court against the liquidator of one Visnagar Nagrik Cooperative Bank Limited and the liquidator of General Cooperative Bank Limited mainly for the declaration that the Corporation–DICGC should be repaid the amount paid by them to the depositors, paid under the Act 1961. According to the Corporation, they are required to be repaid the aforesaid amount after making provisions for expenses and before making other payment to the depositors, creditors or employees. It appears that both the aforesaid Banks were insured Cooperative Banks governed by the provisions of Section 115A of the Gujarat Cooperative Societies Act, 1961 and both the banks were ordered to be liquidated under the provisions of the Gujarat Cooperative Societies Act and the respective liquidators were holding the charge of affairs of both the banks.

3.2. It is not in dispute that the original petitioner–DICGC made the payment of Rs.1 Lac to each of the depositors of the aforesaid banks as per the DICGC Act. Therefore, according to the original petitioners, before making any payment to the depositors/creditors or employees, after realizing the amount by the concerned liquidators, the original petitioner–Corporation–DICGC was required to be repaid first after making provisions for exp