M/S. ADISHAKTI DEVELOPERS Vs. STATE OF MAHARASTRA

JUDGEMENT

(1.) Leave granted.

(2.) These six appeals are directed against common judgment and order dtd. 26/3/2018 passed by the High Court of Judicature at Bombay [High Court.] whereby four writ petitions i.e., W.P. No. 1543 of 2009; W.P. No. 6544 of 2009; W.P. No. 393 of 2010; and W.P. No. 1779 of 2010 were disposed of.

(3.) A plot of land bearing No. 21, admeasuring 810 Sq. mtr., pertaining to Survey No. 14, Village Chembur, Tehsil Kurla, Bombay Suburban District [Hereinafter described as property in dispute.] was subjected to auction sale to recover dues of Mahanagar Co-operative Bank [ Hereinafter described as the Bank.] payable by a partnership firm i.e., M/s. Borse Brothers [ Hereinafter referred to as the firm.]. The firm had availed cash credit facility of Rs.10,00,000.00 from the Bank. As it failed to repay the amount, proceedings were initiated by the Bank under Sec. 91 of Maharashtra Co-operative Societies Act, 1960 [ Hereinafter referred to as the 1960 Act.]. In the said proceedings, on 4/4/1994 the Cooperative Court passed an ex parte award of Rs.24,19,904.92 plus interest @ 17.5% per annum against the firm, which was represented through its partners including Panditrao Borse. Pursuant to the award, on 4/7/1996 the Co-operative Court issued a recovery certificate under Sec. 98 of the 1960 Act. Thereafter, a notice of demand of Rs.52,27,800.00 was served upon the firm and its partners. On 16/4/2004, the Special Recovery and Sale Officer [ Hereinafter referred to as SRO] took possession of the disputed property. However, legal representatives of Panditrao Borse i.e., one of the partners, who died in between, moved an application before the Co-operative Court for setting aside the ex parte award and for stay of execution. This application was rejected by the Co-operative Court on 6/9/2004. On 24/12/2004, notice inviting bids for the property in dispute was published in the local newspapers. On 29/1/2005, SRO found bid of M/s. Adhishakti Developers at Rs.1,51,00,000.00 highest and the same was accepted. On the same day, M/s. Adhishakti Developers deposited Rs.52,85,000.00 and balance of Rs.98,15,000.00 was deposited on 17/3/2005, which the Bank accepted. On 18/3/2005, SRO issued order for confirmation of sale and handed physical possession to M/s. Adhishakti Developers. Thereafter, on 21/3/2005, sale certificate was issued, followed by execution of registered conveyance deed dtd. 13/6/2005 in favour of M/s. Adhishakti Developers.