2024:BHC-OS:4751 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION (LODG.) NO. 6994 OF 2024 Emerald Realtors Pvt. Ltd. ..PETITIONER V/S.

1. Unity Small Finance Bank Ltd

2. Government of Maharashtra

3. Central Registrar for Co-op. Societies ..RESPONDENTS WITH WRIT PETITION (LODG.) NO. 3669 OF 2024 Dewan Realtors Pvt. Ltd. ..PETITIONER V/S.

1. Unity Small Finance Bank Ltd

2. Government of Maharashtra

3. Central Registrar for Co-op. Societies ..RESPONDENTS ___________

Mr. Navroz Seervai, Senior advocate with Mr. Subir Kumar, Ms. Disha Shah, Ms. Valentine Mascarenhas and Mr. Abhinav Palshikar i/by. SDS Advocates for the Petitioner in Writ Petition (L) No. 6994 of 2024.

Mr. Subir Kumar with Ms. Disha Shah, Ms. Valentine Mascarenhas and Mr. Abhinav Palshikar i/by. SDS Advocates for the Petitioner in Writ Petition (Lodg.) No. 3669 of 2024 Mr. Ramesh Dubepatil, with Ms. Bhavana Dupepatil and Mr.

Kushal Mishra i/by. Jay & Co., for Respondent No.1. Ms. Gaurangi Patil, AGP for State-Respondent No.2.

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CORAM : SANDEEP V. MARNE, J. Judgment Resd. On : 8 March 2024.

Judgment Pron. On : 20 March 2024.

JUDGMENT :

1) Rule. Rule is made returnable forthwith. With the consent of the learned counsels appearing for the parties, the Petitions are taken up for final hearing and disposal.

2) These two Petitions raise two broad issues :

i) Can arbitration proceedings initiated at the instance of a Multi-State Cooperative Society under Section 84 of the Multi State Co-operative Societies Act, 2002 be continued and concluded after amalgamation of such Society into an entity, which is not a Multi-State Cooperative Society ? and ii) Whether mandate of Arbitral Tribunal comes to an end at expiry of period specified in Section 29A of the Arbitration and Conciliation Act 1996 ?

Connected with the above two issues, is the issue of entertainment of a Writ Petition by this Court, in exercise of jurisdiction under Article 226 and/or 227 of Constitution of India, to interdict pending arbitration proceedings.

3) Issues arise in the light of Petitioners’ challenge to the continuation of arbitration proceedings initiated at the instance of Punjab and Maharashtra Cooperative Bank, a Multi-State Cooperative Society, after its amalgamation with Unity Small Finance Bank Ltd, which is not a Multi-State Cooperative Society. In Writ Petition (Lodg.) No. 6994 of 2024, continuation of arbitration proceedings which are being conducted by the sole arbitrator is questioned essentially on two counts (i) that Respondent No.1-Bank is not a Multi-State Co-operative Society within the meaning of Multi State Co-operative Societies Act, 2002 (MSCS Act) and that therefore the appointment of an Arbitrator under Section 84 of that Act is invalid; and (ii) that the mandate of the sole Arbitrator has ended as per the provisions of Section 29A of the Arbitration and Conciliation Act, 1996 (Arbitration Act) and that therefore the said Arbitrator can no longer continue with the arbitration proceedings. On the other hand, in Writ Petition (Lodg.) No. 3669 of 2024, the arbitration proceedings in seisin before the learned Arbitrator are questioned on multifarious grounds including the ground if the mandate of the Arbitrator being terminated under Section 29A of the Arbitration Act.

4) Punjab and Maharashtra Co-operative Bank Ltd (PMC Bank) was a Multi-State Cooperative Society registered under the provisions of the MSCS Act and was carrying on the business of banking as per the license issued under the provisions of the Banking Regulation Act, 1949. Petitioners applied for credit facilities with PMC Bank from time to time. On account of the default committed by Petitioners in repaying the credit facilities availed from the PMC Bank, it desired to initiate recovery proceedings against them.

5) Under Section 84 of the M.S.C.S. Act, all disputes touching the constitution, management or business of a Multi- State Co-op. Society, including the claim by the Society or