RADHESHYAM LALURAM KABRA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) IN all these matters, since questions of law raised are the same, they are heard and decided together by this common judgment.

(2.) THE petitioners in some batch of petitions are borrowers and guarantors for the loan advanced by Naptur Cooperative Bank Limited and in other for the loan advanced of Ahmedabad Mahila Cooperative Bank Limited which are under liquidation. The case originally put up by the petitioners is that since maximum period of seven years as provided under section 114 of the Gujarat Cooperative Societies Act, 1961 ('the Act' for short) for closing winding proceedings was over from the date of appointment of the liquidator, the liquidation proceedings shall be deemed to be closed, the notice issued by the liquidator for recovery of due amount from the petitioners was without jurisdiction and since the bank would cease to exist, even proceedings of lavad suits filed by the bank would stand terminated.

(3.) IT appears that the petitions wherein Natpur Bank is concerned except Special Civil Application No.11088 of 2014 to Special Civil Application No.11094 of 2014 were then amended so as to challenge notification issued by the State Government under section 161 of the Act exempting Naptur Bank from the provisions of section 114 of the Act. Necessary amendment in body of the petitions taking different grounds of challenge against notification as also amendment in the prayer clause challenging notification came to be inserted by leave of the Court.