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2022 Supreme(Guj) 24

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, J.
Bhavnagar Jillla Sahakari Sangh - Appellant
Versus
State of Gujarat - Respondent
R/Special Civil Application No. 2110 of 2021
Decided on : 15-02-2022

Advocates:
Advocate Appeared:
For the Appellant :Baiju Joshi, Advocate
For the Respondent: Dhawan Jayswal, AGP

Headnote:

Gujarat Co-operative Societies Act, 1961 - Section 110,(h),(m) 107, 115, 108, 103, 19 - Code of Civil Procedure, 1908 – Section 2(2) - Gujarat Co-operative Societies Rules, 1965 - Rule 48 - Bombay Sales Tax Act, 1959 - Indian Limitation Act, 1908 - Article 182 - Bank - Settle Accounts and Pay Outstanding Amount - Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing respondents to complete winding up proceedings of respondent No. 4 bank and settle accounts and pay amount outstanding to petitioners under Section 110 of Act – Held, On perusal of above averments made on behalf of respondent Nos. 1 to 3, this Court is not able to understand as to how pendency of criminal cases has to do anything with regard to recovery of outstanding dues of Bank (in liquidation) in view of above provisions of Act, 1961 which are reproduced for benefit of respondents - It appears that respondents are not aware about their powers vested in them by Act, 1961 to recover dues of Society/Bank - Respondent Nos. 1 to 3 are therefore, directed to complete liquidation proceedings of respondent No. 4-Society within a period of six months from date of receipt of this order and submit a detail action taken and compliance report before this Court and complete liquidation proceedings at earliest - This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing respondents to complete winding up proceedings of respondent No. 4 bank and settle accounts and pay amount outstanding to petitioners under Section 110 of Act - Petition allowed.

JUDGMENT :

Bhargav D. Karia, J.

Heard learned advocate Mr. Baiju Joshi for the petitioners and learned Assistant Government Pleader Mr. Dhawan Jayswal for the respondent Nos. 1 to 3.

1. Pursuant to the order dated 3rd February, 2022, learned Assistant Government Pleader Mr. Jayswal has tendered the further affidavit on behalf of the respondent Nos. 1 to 3 in compliance of the order dated 05.01.2022.

2. On perusal of the further affidavit filed today, it appears that the respondent-authorities are not able to understand the gravity of the situation with regard to the pending liquidation of the Co-operative Banks in the State of Gujarat. Except giving the statistics of the outstanding secured and unsecured accounts and the amount to be recovered, no action plan is prepared and submitted in the affidavit.

3. In view of the above situation, this Court is not inclined to pursue the matter further. Let the people of Gujarat be left at the mercy of the officers of the respondent-Departments for their outstanding amount to be paid or recovered by the Banks which are taken into liquidation.

4. So far as the facts of the present case is concerned, the following prayers are made by the petitioners:

    "(A) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up proceedings of the respondent No. 4 bank and settle the accounts and pay the amount outstanding to the petitioners under Section 110 of the Act.

(B) This Hon'ble Court be pleased to issue a mandamus and/or writ of writ of certiorari or any other appropriate writ, order or direction, directing the respondent Nos. 11 to 3 to remove the liquidator and thereafter, appoint a committee of liquidator from and amongst the present petitioners so as to expedite the liquidation proceedings of respondent No. 4 bank.

(C) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up and/or liquidation proceedings of respondent No. 4 bank within time bound period in consonance with the Act and the Rules.

(D) During the pendency hearing and final disposal of this, petition, this Hon'ble Court be pleased to change the liquidator of the respondent No. 4 bank and further the status report of the liquidation proceedings, the periodical reports as well as the action plan for further proceeding may be directed to be submitted before this Hon'ble Court.

(E) Any other and further reliefs as deemed just and proper looking to the facts of this case, may kindly be granted in favour of the petitioner, in the interest of justice."

5. Learned advocate Mr. Joshi submitted that the respondent-Liquidator has not taken any action which is reflected from the chart produced along with the further affidavit filed today where the name of the respondent No. 4-Bank appears at Serial No. 38 and it is reflected that there are 3,356 accounts from which the recovery of Rs. 954.96 Lakh is to be done. However, no further details are provided in the affidavit or further affidavits which are filed from time to time with regard to the efforts made by the Liquidator of the respondent No. 4-Bank for recovery of the outstanding dues.

6. It also appears that the respondent-authorities including the Liquidator are not bothered or aware about the provisions of the Gujarat Co-operative Societies Act, 1961 (for short 'the Act, 1961'), more particularly, Section 107 to Section 115 of Chapter X which provides for liquidation.

7. It appears that the Liquidators appointed by the State of Gujarat for the Banks which are taken into liquidation are not properly educated with regard to the powers vested in them under Section 110 of the Act, 1961. Section 110 of the Act, 1961 reads as under:

    "110. The Liquidator appointed under section 108 shall have power, subject to the rules and the general supervision,

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