1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE SIDE Review Petition No.57 of 2008 In Writ Petition No.1572 of 2008 With Review Petition NO.58 of 2008 In Writ Petition No.1569 of 2008 M/s.Sapna Talkies Petitioner Vs. Godavari Urban Co-op. Bank Ltd. and anr. Respondents Mr.P.L.Bhujbal for petitioners in both the review petitions. Mr.Anilkumar Patil for resp.no.1. Mr.H.S.Venegavkar for resp.no.2. CORAM: B.H.MARLAPALLE, J. June 5, 2008 P.C. 1. Heard Mr.Bhujbal, the learned counsel for the review petitioner who is the original owner of the property sought to be auctioned and borrower of both the Co-operative Banks. 2. Rule. 3. Mr.Patil waives service for the respondent no.1 and Mr.Venegavkar waives service for the 2 respondent no.2. By consent, Rule is made returnable forthwith. 4. Both the writ petitions were disposed off by common order dated 28/4/2008 by directing the present respondent no.1 - Godavari Urban Co-operative Bank Ltd. to auction sale the property of the review petitioner and which property has been under attachment at the instance of the Nashik Peoples Co-operative Bank Ltd. (now mortgaged with the Saraswat Co-operative Bank Ltd.). However, though the review petitioner was one of the respondents in the Writ Petitions, no notice was issued to it, and though Rule was granted on 17/4/2008, the order under review passed on 28/4/2008 was before the notice on Rule was served to the review petitioner. The farad shows that when the Rule was granted on 17/4/2008, Bhatta charges were remitted on 22/4/2008 after amending the petition and due to inadequate time, the notice on Rule was not issued to the review petitioner till 22/4/2008. 5. It has also been pointed out that the disputes filed by the Godavari Urban Co-operative Bank Ltd. are still pending before the Co-operative Court at 3 Nashik and both the disputes are for recovery of dues arising out of the loan obtained by the review petitioner. Thus, no rights have been crystalised as of now in respect of the claim pending in both the disputes, in favour of the Godavari Urban Co-operative Bank Ltd. and to be satisfied by the review petitioner. On the other hand, there is a decree passed in favour of the Nashik Peoples Co-operative Bank / Saraswat Co-operative Bank Ltd. and at the instance of the said Bank the subject property was handed over to that Bank by the Co-operative Court. Under these circumstances, the Saraswat Co-operative Bank Ltd. has a legal right to initiate the auction sale rather than Godavari Urban Co-operative Bank Ltd. as has been submitted by Mr.Bhujbal. 6. Mr.Patil, the learned counsel for the Godavari Urban Co-operative Bank has pointed out that as per the order under review allowing the said Bank to proceed with the auction sale of the suit property, it had released advertisements in local newspapers and invited bids for the proposed auction sale. These advertisements were published on or about 10/5/2008 in some of the local newspapers and the 4 auction sale was sought to be held on 24/5/2008. However, in the absence of any bidder there could not by any auction sale and consequently the Godavari Urban Co-operative Bank has released a fresh advertisement in some of the local newspapers as well as English Dailies published from Mumbai informing that the auction sale would be held on 16/6/2008. Thus as of now the auction sale has not materialised and Mr.Bhujbal, the learned counsel appearing for the review petitioner does not dispute the right of the Saraswat Co-operative Bank Ltd. to proceed with the auction sale. 7. Hence both the Review Petitions are allowed and the common order dated 28/4/2008 is hereby recalled. 8. By consent it is directed as under: (a) The property under auction sale / mortgaged property which was handed over to the Godavari Urban Co-operative Bank Ltd. shall be put in possession of the Saraswat Co-operative Bank Ltd. within one week from today by the Godavari Urban Co-operative Bank Ltd. 5 (b) The Saraswat Co-operative Bank Ltd. to undertake the auction sale of the said property by inviting fresh bids and to be published in some of the leading newspapers (Marathi as well as English) published from Mumbai / Pune. The auction sale to be completed by 31st July 2008. (c) Mr.Bhujbal, the learned counsel has referred to the statement made by the Godavari Urban Co-operative Bank and which has been recorded in the order recalled, that the property under auction sale will fetch around Rs.3 crores. Undoubtedly, the Saraswat Co-operative Bank Ltd. will keep in mind the said statement and in any case it would obviously accept the highest bid that it may receive. (d) The proceeds of the auction sale shall be deposited with the Co-operative Court at Nashik by the Saraswat Co-operative Bank Ltd. and the said Bank is at liberty to apply for withdrawal of the amount as per the decree passed in its favour and such an application will have to be decided by the Co-operative Court after hearing all the parties concerned. 6 (e) The auction sale is without prejudice to the rights and contentions of the respective parties and more particularly the review petitioner as well as the Godavari Urban Co-operative Bank Ltd. At the same time if the review petitioner remits the amount under decree passed in favour of the Saraswat Co-operative Bank Ltd. before the auction sale is completed, the auction sale will not proceed and in that event the subject property will be restored to the Court Receiver in the disputes filed by the Godavari Urban Co-operative Bank Ltd. (f) It is further made clear that if for any reasons the Saraswat Co-operative Bank Ltd. fails to complete the auction sale by 31st July 2008 it may approach for extension of time, if found necessary, to this Court and if no such application is made prior to 31/7/2008, the property shall stand restored to the Court Receiver as referred to hereinabove (g) Clause 2 of the order passed by the Co-operative Court and confirmed by the Appellate Court shall stand set aside. 7 (h) The pending disputes filed by the Godavari Urban Co-operative Bank Ltd. and presently pending before the Co-operative Court at Nashik are expedited. 9. Writ Petition Nos.1569 and 1572 of 2008 stand disposed off in terms of the above directions. 10. Rule is made absolute accordingly with no order as to costs. 11. Certified copies be made available on priority basis. (B.H.MARL