Point of law: Tribunal, after taking into consideration the fact that the petitioner along with respondent Nos. 3 and 4 have failed to deposit 25% of the amount to contest the Lavad Suit as conditional leave was granted by the Board of Nominees, there was no need to grant stay against the judgment and decree which is a money decree in favour of the respondent No.2-Bank passed by the Board of Nominees.

ORDER :

1. Heard learned advocate Mr. Bakul Panchal for the petitioner, learned Assistant Government Pleader Mr. Dhawan Jayswal for respondent No.1 and learned advocate Mr. Arvind Yadav for respondent No.2.

2. By this petition under Article 227 of the Constitution of India, the petitioner has challenged order dated 04.03.2021 passed by the Gujarat State Co-operative Tribunal, Ahmedabad [‘the Tribunal’ for short] below Exh 8 in Appeal No. 9 of 2021 which was filed by the petitioner being aggrieved by the judgement and decree passed by the Board of Nominees in Summary Lavad Case No. 174 of 2016.

3. The brief facts of the case are as under: 3.1 The petitioner No.1 and respondent Nos. 3 and 4 are the borrowers and guarantors of respondent No.2-Textile Traders Co-operative Bank Limited. Respondent No.2 advanced cash credit facility of Rs. 1.80 crores against hypothecation of debt and stock and raw materials in the year 2014 to respondent No. 3- Banga Ruchi Akash, Proprietor of M/s. Shreeji Apparels and respondent No.4-Banga Akash Devkinandan, who is a guarantor of respondent No.3. The petitioner is the mother of respondent No.4 and mother-in-law of respondent No.3.

3.2 The respondent No.2-Bank also advanced a loan of Rs. 20 lacs for purchase of machinery against personal guarantees given by respondent Nos. 3 and 4. Respondent No.3 and 4 also have given demand promissory note, letter of lien, letter of continuity, undertaking about interest rate, power of attorney, deed of hypothecation, machinery loan agreement, and executed the plant and machinery hypothecation deed on 20.09.2014 in favour of respondent No.2-Bank. The petitioner stood as guarantor of the respondent No.3 M/s. Shreeji Apparels against the loan facility obtained by the respondent No.3 and respondent No.4 mortgaged the property to the respondent No.2-Bank for the loan advanced to respondent No.3.

3.3 Respondent No.3 has also offered to mortgage the said property in favour of respondent No.2-Bank to secure the financial assistance advanced to M/s Shreeji Apparels - proprietary concerned of wife of respondent No.4.

3.4 Respondent No.2-Bank advanced the loan against the said property which was mortgaged earlier with Kalupur Commercial Bank Ltd, Central Bank of India and Ratnakar Bank in the years 2012-13 and 2013-14.

3.5 Respondent No.3 failed to make the repayment of the loan advanced by the respondent No.2 Bank and therefore, respondent No.2 filed Summary Lavad Case No. 174 of 2016 on 20.05.2016 before the Board of Nominees, Ahmedabad Division for recovery of Rs. 2,18,59,519.49 against the petitioner and the respondent Nos. 3 and 4. In the said Summary Lavad Case, respondent Nos. 3 and 4 appeared through their advocate and applied for a leave to defend unconditionally. The Board of Nominees, by order dated 18.03.2017 passed by below Exh 75, allowed the application for leave to defend conditional and permitted the petitioner and respondent Nos.3 and 4 to defend the Lavad Suit on condition to deposit 25% of the outstanding amount claimed by the respondent No.2 in the suit.

3.6 Respondent Nos.3 and 4 challenged the order dated 18.03.2017 by preferring Special Civil Application No. 6780 of 2017 before this Court. However, the same was withdrawn by respondent Nos. 3 and 4 on 06.12.2019.

3.7 The Board of Nominees, by judgement and decree dated 24.12.2000, partly allowed the Summary Lavad Case No. 174 of 2016 passed by the respondent No.2-Bank and ordered to recover Rs.2,18,59,519.49 from respondent Nos. 3, 4 and the petitioner with interest @ 13% w.e.f. 01.05.2016.

3.8 The petitioner, being aggrieved by the judgement and decree passed by the Board of Nominees, preferred Appeal No. 9 of 2021 before the Gujarat State Co-operative Tribunal under section 153 of the Gujarat Cooperative Societies Act, 1961 [for short ‘the Act, 1961’].

3.9 The petitioner also preferred the injunction application Exh. 8 under section 150(10) of the Act, 1961 read with Order 41 Rule 5 of the Code of Civil Proce