ORAL ORDER

1. The writ-applicant by way of present writ-application under Article 226 of the Constitution of India has prayed for the following reliefs :-

“(a) Be pleased quash and set aside impugned order dated 27th March 2014 passed by the Joint Secretary Appeals, Gandhinagar in Revision Application no. 46 of

2014.

(b) Pending Admission, Hearing and Final disposal of this Petition, be pleased to stay the operation, effect and implementation of the impugned order dated 27th March 2014 passed by the Joint Secretary Appeals, Gandhinagar in Revision Application no.46 of 2014. (c) Costs of this Petition be awarded.

(d) Such further and other relief, order or direction which may be just, fit, proper and equitable in the facts and circumstances of the Petition.”

2. The writ-applicant is a registered Multi State Cooperative Bank under the Multi State Cooperative Societies Act, 2002. The respondents No.1 and 2 had obtained loan from erstwhile Surendranagar Mercantile Cooperative Bank Ltd., which later merged under the guidelines of the Reserve Bank of India with the writ-applicant Bank on 27.1.2010 by virtue of the order passed by the Registrar of Cooperative Societies, Gandhinagar with due approval and assent accorded by the Central Registrar of Multi State Cooperative Societies, New Delhi and Reserve Bank of India.

3. Briefly stated the Secured Cash Credit facility agreement alongwith Hypothecation of movable properties with the erstwhile Surendranagar Mercantile Cooperative Bank Ltd is of dated 28.1.1998. The certificate under Section 103 came to be issued on 2.9.2004. Subsequently a valid merger process was pursued and done in accordance with and by observing due process of law, pendente lite the execution proceedings after obtaining certificate of recovery under Section 103 of the Act.

4. The writ-applicant issued a recovery notice against the respondent on 21.1.2013. Attachment notice came to be issued on 22.4.2013. Panchnama of the said attachment of property is dated 1.5.2013. Public Auction is dated 14.6.2013. Auction notice informing the respondent debtor is dated 17.6.2013. Further auction notice were issued on 20.7.2013, 4.9.2013, 15.2.2014 and 16.2.2014. The panchnama for attachment of the property of applicant No.2 before the Joint Secretary (Appeals) Gandhinagar is dated 23.9.2013. The respondent made an application before the writ-applicant dated 22.3.2014. 5. The respondents No.1 and 2 preferred Revision Application No.46 of 2014 in March, 2014 before the Joint Secretary (Appeals), Gandhiangar alongwith injunction application which came to be allowed in favour of the respondents No.1 and 2 wherein it was held that the writ- applicant cannot recover the loan amount which was disbursed to the respondents No.1 and 2 invoking the provisions of the Gujarat Cooperative Societies Act. The impugned order dated

27.3.2014 reads thus :-

“Careful consideration of Revision Application of the Applicant, Written Reply produced by the Respondent – Bank, Oral Arguments and Citations produced by the Applicant of this case was carried out.

The Applicant has received credit from - The Mercantile Co.-

op. Bank, Surendranagar and this Bank was registered under The Gujarat Co-operative Act-1961. The Mercantile Co-op. Bank, Surendranagar which has been registered under the Co- operative Act of the State have been taken-over by Adarsh Co- op. Bank, which is registered under The Central Co-op. Act- 2002. In this reference, the issue of Jurisdiction has been raised on relying upon the Order dtd. 26/09/2012 passed by the Division Bench of the Hon'ble Gujarat High Court in L.P.A. no. 383/2010 and it has been represented that the Respondent Bank does not have right for recovery from us (the Applicant)

u/s. 159 of the Co-Operative Act.

In this context, the Judgment dtd. 26/09/2012 of the Hon'ble Gujarat High Court which is regarding Unnati Co-op. Bank - which was registered under the Co-operative Act of the State Govt. and against it, there was Cosmos Co-op.