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SHRI ARUN B. KHANJIRE versus THE ICHALKARANJI URBAN CO-OP. BANK LTD. & ORS.

Citation: [2008] 16 S.C.R. 1108 · Decided: 03-12-2008 · Supreme Court of India · Bench: ALTAMAS KABIR · Disposal: Dismissed

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Judgment (excerpt)

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[2008] 16 S.C.R. 1108 
SHRI ARUN 8. KHANJIRE 
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THE ·ICHALKARANJI URBAN CO-OP. SANK LTD. & ORS. 
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· . · (SLP (C) NO. 18563 of 2005) 
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DECEM~ER 3, 2008 
[ALTAMAS KABIR AND MARKANOEY KAT JU, JJ.] 
· Maharashtra ·Co-operative Societies Act, 1960 - ss. 154 
and 101 -
Default in repayment ·of loah ..... Recovery 
C procee.dings initiated by Respondent-Co-operative Sank 
against ths Petitioner - Recovery certificates issued by Asstt. 
·Registrar, Co-operative Societies - High Court declined to 
interfere -Application by Petitioner before Divisional Joint 
Registrar for settihg aside recovery certificates allowed -
o Propriety of ..:. Held: Not proper - s. 154(2A) . stipulated pre-
deposit of 50%. recoverable dues as pre-condition to hear 
appeal- Petitioner made application in which all facts relating 
to appeal were set out and which served the purpose of appeal 
without compliance with s. 154(2A). 
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The Petitioner disputed his liability and that of his firm 
to make payments to Respondent-Co•operative Bank, 
after allegedly taking loans from it, and filed an 
application under s;91 of the Maharashtra ·Co-operative 
Societies Act, 1961. Meanwhile, Respondent-Bank 
F initiated action for recovery against the Petitioner and his 
firm under s.101 of the Act. The Assistant Registrar of the 
Co-operative Societies issued recovery certificates after 
accepting the claim of the Bank. The. Petitioner filed writ 
petitions before the High Court. The High Court declined 
G to grant relief. The Petitioner filed Misc. complaint . 
appl,ication before the Divisional Joint Registrar seeking 
reliefs similar to the reUefs sought for in the writ petitions. 
The. Divisional Joint Registrar set aside the recovery 
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certificates. Writ petition against the order of Divisional 
1108 
ARUN B. KHANJIRE v. ICHALKARANJI URBAN CO-OP. 
1109 
BANK l tb. & ORS, 
Joint Registrar was-allowed. Hence the present petition. 
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Dismissh1g the Petition, the Court 
.· HELD: 1. 1·n view of s.154 of the Maharashtra Co-
op-erative Societies Act, 1960, and in particular Sub-
section (2A) of s.154, no interference is called for wi.th the · 8 
order of the High Court. [Para 16] [1115-C-D] 
2.1. s.154(1) of the Act confers revisionary powers on 
the State Government and also the Registrar of Co-
operative Societies under the Act. It also empowers the 'c 
State Government or the Registrar to satisfy themselves 
as to the legality or the propriety of any such decision or 
order and to modify, annul or reverse the same after 
giving the person affected thereby an opportunity of , 
being heard either suo motu or on an application. In the o 
instant case, although it was contended that the 
proceedings had been commenced suo-motu, one is 
unable to accept such submission sinc.e an application 
had been made by the petitioner to the officer concerned 
in which all the facts relating to the appeal had been set 
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out. Although, the same was not in the form of a formal 
Memorandum of Appeal it served the purpose of the 
appeal without compliance with the provisions of Sub-
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section (2A) which required deposit of 50% of the 
recoverable dues. In fact, the petitioner .resorted to an 
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innovative procedure in order to avoid the pre-condition 
of payment of 50% of recoverable dues as stipulated 
under Sub-section (2A) of s.154 ofthe Act [Para 16][1115-
D-G] 
2.2. The matter was not taken up suo-motu by the 
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Divisional Joint Registrar, but on the basis of the 
. application which had been filed by the petitioner, though 
not in. the form of a Memorandum of Appeal, and that 
while an appeal may be filed within the period of limitation 
prescribed, it could not be entertained or taken up for 
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· 11-10 
SUPREME COURT REPORTS 
[2008] 16 S.C.R. 
A hearin_g .before the· pre-condition indicated in Sub-section 
(2A) had been complied with. [Para 17] (1115-H; 1116-A-B] 
. The Commissioner of Income-Tax, Bombay v. Mis 
Filmistan Limited (1961) 3 SCR 893 and Lakshmi Rattan 
8 Engineering Works' Ltd. v. ·Assistant Commissioner Sales 
Tax,·K;;mpur (1968) :1 SCR 565 and State of Haryana v. 
Maruti Udyog Limited (2000) 7 SCC 348, referred to. 
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Case Law· Referenc'e: 
(19G1) 3 SCR '893 
(1968) 1 SCR 565 
(2000) 1 sec. 348 
referred to 
referred· to 
referred to 
Para 12 
Para 13 
Para 14 
CIVIL APPEtLATE'JURISDICTION : Special Leave 
D Petition (C) No'.'18563 of 2005. 
· 
, ; From the Judgment and Order c;lated SA.2005 of the Hig

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