SHIKSHAK SAHAKARI BANK LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Heard finally by consent of Shri N.C. Phadnis, learned Counsel for the petitioner and Ms. N.P. Mehta, learned Assistant Government Pleader for respondents. Rule is therefore issued & made returnable forthwith.

(2.) By this petition filed under Articles 226 and 227 of the Constitution of India, the petitioner - a Cooperative Bank questions common judgment dated 03.05.2013 delivered in Second Appeal Nos. 469 to 473 of 2012 by the 4th Bench of Maharashtra Sales Tax Tribunal at Mumbai, holding that it cannot grant leave to petitioners to file an appeal under Section 55 of the Bombay Sales Tax Act, 1959 and dismissing its appeal as unsustainable. Thus, merits of challenge have not been looked into.

(3.) Facts necessary to understand the challenge can briefly be stated now. Petitioner is a Cooperative Bank registered as such under the provisions of Maharashtra Cooperative Societies Act, 1960. In course of its business, it extended term loan of Rs. 1 Crore to one M/s. Kamakshi Hotel Private Limited, a Company having three Directors on 10.01.1997. On 09.10.1997, it advanced Rs. 50 lacs more and on 25.07.1998, another Rs.50 lacs. Thus, total loan advanced was Rs. 2 Crores for opening a family resort against hypothecation by creating registered mortgage of land, building etc. in its favour. The loan could not be repaid and in view of defaults, petitioners resorted to recovery under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the Securitisation Act" for short). It took symbolic possession of the property on 19.09.2003, and actual physical possession on 05.11.2004. Mortgaged property was then auctioned on 05.02.2011 and nobody, including the respondent nos. 2 to 6, objected to the said public auction.