THANE JANATA SAHAKARI BANK LTD Vs. VANDANA JEWELLERS

JUDGEMENT

(1.) SHRI Joshi waives service of Rule on behalf of respondent nos. 1 to 4. Sbri D' Gama, learned Asst. Government pleader waives service of Rule on behalf of respondent nos. 5 and 6. By consent of parties Rule heard forthwith. Heard parties and perused the record an I the impugned order. The District Deputy Registrar of the Co-operative Societies, Thane granted a certificate under Section 101 of the Maharashtra Co-operative societies Act, for recovery of Rs 8 98,875. 85 plus interest thereon from 1-4-1993 in favour of the petitioner bank against the respondent nos. 1 to 4 The Respordent nos 1 to 4 preferred revision application under Section 154 of the Act to the Divisional Joint Registrar (Appeals) Bombay bearing revision application no. 123 of 1993. The Divisional Joint Registrar (Appeals) Bombay by his interim order dated 30th August 1993 directed the respondent nos. 1 to 4 to pay Rs. 15,000 per month with effect from November 1993. The deposit was to be made on 10th of every month. The bank is directed to raise attachment of the shop forthwith as also hand over back the possession of the premises and articles attached Tn case of default the bank was at liberty to attach the goods and the premises. It was further made clear that if the applicants sell any articles attached, the amount should be deposited with the bank.

(2.) DESPITE herculien efforts Mr. Joshi, it is impossible to sustain the aforesaid order. It is difficult to appreciate how the hypothecated articles and goods i. e. jewellery can be handed back to the applicants against whom recovery of about Rs. 9 lacs is pending. The order impugned in this petition cannot be sustained on any ground. Several time this Court came across, orders pased by the authorities under the Co-operative Societies Act in proceedings challenging certificate issued under Section 101 of the Act and on a deposits of partly amount, the recovery of the amounts running into lacs of rupees are stayed. It is time that the authority should be more careful, while stopping recovery by banks or other institutions and if at all on the basis of the facts and circumstances any such stay is to be granted interest of financial institutions and especially security ought to be assured.

(3.) IN the result petition succeds. The order dated 30-8-1993 stands quashed and set aside It is made clear that the attachment of shop premises and the articles already attached to continue and shall remain in force till the debt is realised. However it is also made clear that the said attachment shall not disentitle the applicants from using the shop premises. The bank will be at liberty to take all the attached goods from the shop premises in its possession for safe custody. It is also made clear that as of today instalment of Rs 15,000 is not paid. In these circumstances it is made clear that the bank will be fully at liberty to execute and recover the amounts under the certificate in accordance with law. Rule made absolute in the aforesaid terms. There shall be no orders as to costs. Certified copy expedited. Petition allowed