Honble GUPTA, J. – A ticklish but interesting question to be decided in this appeal is whether the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act. No. 51 of 1993) is applicable to the recovery of the debts by the co-operative bank, due to its members.

FACTS FIRST :

Appellant M/s. Phoneix Impex had Account No. 1 in the Jodhpur Central Cooperative Bank (respondent No. 2). A sum of Rs. 27,35,649 was outstanding against the appellant on 14.7.95. A demand was raised by the Bank but the appellant did not deposit the amount. Therefore, the proceedings of recovery were taken under the provisions of the Rajasthan Cooperative Societies Act (to be hereinafter referred to as `the Rajasthan Act of 1965). The respondent No. 2 calculated Rs. 37,71,323 as the sum outstanding against the appellant, and issued notification for sale of the property belonging to the appellant. It is on the issuance of the notification that the appellant filed writ petition alleging that the amount shown in the notification was not outstanding against it and also that the Bank could not recover the amount in accordance with the procedure laid down in the Rajasthan Cooperative Societies Act, 1965

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