IN THE HIGH COURT OF JUDICATURE AT PATNA MJC No.2411 of 2006 JAMUNA SINGH & ORS Versus STATE OF BIHAR ----------- For the Petitioners : Mr. Nand Kishore Pd. Sinha, Adv. For the Opposite parties : A.A.G.-IX ------------- P R E S E N T Hon'ble the Chief Justice & Hon'ble Mr. Justice Kishore K. Mandal ---------- Dated, the 17th July, 2008. On 1st August, 2005, the following order came to be passed: - “In such view of the matter, within seven days if PACS does not report to the Registrar, Co-operative Society, Government of Bihar that it has paid the dues of the petitioners, the Registrar, Co-operative Society, Government of Bihar is directed to forthwith appoint a Liquidator over PACS with a direction upon him to take possession of the entire assets of PACS to ensure liquidation of PACS and to distribute its assets amongst its creditors including the petitioners on pari pasu basis. This disposes of the writ petition.” 2. The grievance of the petitioners is that the opposite parties have flouted and deliberately disobeyed the said order. 3. Cause has been shown on behalf of the Registrar, Co-operative Society, Government of Bihar (Opposite party No.12). In his cause, he has shown thus: - - 2 - “5. That it is stated that PACS did not report to the Registrar-cooperative society (i.e. the answering opposite party that it has paid the dues of the petitioners. However District Co-operative Officer Aurangabad vide his letter no. 20 dated 4.1.06 informed the answering opposite party about the aforesaid order of this Hon’ble Court. 6. That the Hon’ble Court through the aforesaid order dated 1.8.2005 has directed the Registrar, co- operative Societies, Government of Bihar to forthwith appoint a liquidator over PACS with a direction upon him to take possession of the entire assets of PACS to ensure liquidation of PACS and distribute its assets amongst its creditors including the petitioner on pari pasu basis. 7.That in compliance of the order dated 01.08.05 of the Hon’ble High Court the members of the Bara PACS has been asked to file show cause till 22.04.06 that why not the said PACS put on liquidation vide order memo no. 1627, dated 29.03.2006. 8. That it is stated that even after passing of the prescribed time in order memo no.1627 dated 29.03.06, no reply was filed, therefore, Sri Virendra Kumar, District cooperative Officer, Aurangabad has been appointed liquidator of said PACS vide order memo no. 2820, dated 06.06.06 and he has been directed to ensure liquidation of PACS as per the order of the Hon’ble High Court. 9. That it is stated that Sri Virendra Kumar, District cooperative Officer-cum-liquidator has informed vide his letter no. 868 dated 15.11.2006 that he has taken over the charge of the liquidator of the concerned PACS on 26.10.06. 10. That it is respectfully stated and submitted that as per Rule 59 of the Bihar Cooperative Societies Rules 1959, a PACS under liquidation has to be audited on date of liquidation so that the assets and liabilities of the society could be ascertained. And so the PACS records have been audited till 31.03.2006 and further audit till the date of liquidation is being processed. 11. That it is pertinent to mention her that the PACS does not have any immovable property of its own nor did have any business till date of liquidation. 12. That it is respectfully stated that the liquidator from the resources best available to the society has - 3 - transferred 1500 Rupees only till now to the account of each of the petitioners. 13. That it is further respectfully stated that the liquidator has initiated steps to pursue collection and recovery operation to clear the liabilities of the creditors including the petitioners.” 4. It would be thus seen that the Liquidator has been appointed; he has taken over charge as Liquidator of the concerned P.A.C.S. and efforts are being made by him to clear the liabilities and pay to the creditors including the petitioners. 5. By no stretch of imagination, conduct of opposite party no.12 or for that matter, the Liquidator can be said to be in disobedience of the order dated 1.8.2005. 6. Contempt application (M.J.C.) is accordingly disposed of. However, we observe that the Liquidator shall act fast in discharging the liability of the concerned P.A.C.S. and due payments shall be made to the creditors including the petitioners from the available funds as early as possible. R. M. Lodha, CJ Kishore K. Mandal, J Pawan/-