1 IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD WRIT PETITION NO.4305 OF 2009 Sunil s/o Reva Chavan, age: 32 years, Occ: Service, R/o Bokud Jalgaon, Taluka Paithan, District Aurangabad. Petitioner Versus 1 The State of Maharashtra, through the Secretary, Cooperation and Textile Department, Maharashtra State, Mantralaya, Mumbai. 2 The Commissioner for Co-operation and Registrar of Co-operative, Societies, Maharashtra State, Pune. 3 The Joint Registrar, Co-operative Societies, Aurangabad Division, Aurangabad. 4 The Deputy Registrar (Shri B.L.Jadhav), Co-operative Societies, Taluka Aurangabad, District Aurangabad. 5 Aurangabad Peoples Co-operative Bank Ltd., Gulmandi, Aurangabad, through its Liquidator. 2 6 Aurangabad Peoples Co-operative Bank Ltd., Gulmandi, Aurangabad, through its Manager. 7 The Special Recovery Officer, Aurangabad Peoples Co-operative Bank Ltd., Gulmandi, Aurangabad. Respondents 8 Santosh s/o Banshi Rahod W.P. stands dismissed against 9 Vijay s/o Govind Pawar Respondents No. 8 & 9, as per order dt.6.8.2009 Mr.R.T.Nagargoje, advocate for the petitioner. Mrs. Y.M.Kshirsagar, A.G.P. for Respondents No.1 to 4. Mr.Bharad, advocate holding for Mr.V.D.Salunke, advocate for Respondents No.5 to 7. CORAM: R.M.BORDE, J. DATE : 24 th September, 2010. ORAL JUDGMENT: 1 Heard learned Counsel for respective parties. Rule. Rule made returnable forthwith and heard finally by consent of learned Counsel for contesting respondents. 2 An application was tendered by Respondents No.5, 6 and 7 claiming recovery of amount to the tune of Rs.79,578/- along with interest. The application tendered by the bank for 3 issuance of recovery certificate was taken up for consideration by the Deputy Registrar, Co-operative Societies, Aurangabad and after extending an opportunity of hearing to the petitioner, the Deputy Registrar was pleased to issue recovery certificate, as contemplated by law. 3 Petitioner is challenging the order of issuance of recovery certificate on the ground that the Deputy Registrar ought not to have taken up the matter for consideration as he himself was functioning as liquidator appointed by the State Government in respect of the Bank i.e. Respondents No.5 & 6. It is pointed out that one Shri B.L.Jadhav, who has passed the impugned order in the capacity of Deputy Registrar, Co-operative Societies, Aurangabad, was appointed as liquidator by an order dated 24.11.2006. The liquidator has assumed charge of the office of liquidator after his appointment. It is contended that the liquidator has stepped into the shoes of the Management of the Bank and as the person appointed was himself interested in the cause, which was being agitated before the deciding authority, it was not permissible for him to render decision in the matter. It is stated that a person cannot be Judge of his own cause and as such, the impugned order passed in the matter by the Deputy Registrar, who himself was functioning as liquidator appointed by the State Government, is bad in law. 4 This position stated above, is not controverted by the 4 contesting respondents. It is needless to observe that justice need not only be done but same shall be demonstrated to have been done. In the instant matter, although petitioner has not specifically disclosed as to what prejudice is caused to him, but in order to maintain sanctity of the justice delivery system, it is desirable that the matter may be remitted back once again for rendering decision afresh by the concerned authority. 5 A grievance is made by the petitioner that he has not been extended fullest opportunity to put forth his contentions before the Deputy Registrar. It is contended that he is not liable to pay the amount as directed by the Deputy Registrar. 6 The arguments advanced by the petitioner and objections raised by him are required to be dealt with by the Deputy Registrar, Cooperative Societies dealing with the case in respect of issuance of recovery certificate. I, therefore, do not propose to go into merits of the controversy and make any observations in respect of issuance of certificate. The adjudication in the mater by the Deputy Registrar, who himself was functioning as liquidator in respect of Respondent-Bank, is not in consonance with the observance of principles of natural justice. 7 In this view of the matter, the impugned order passed by the Deputy Registrar, Co-operative Societies, Aurangabad on 01.06.2009, in respect of issuance of recovery certificate as against 5 the petitioner, needs to be quashed and set aside and the matter need to be remitted back to the concerned authority for fresh consideration in accordance with provisions of law. It is pointed out that presently Shri B.L.Jadhav is not the person holding charge as liquidator and he is also not holding the office of Deputy Registrar, Co-operative Societies, Aurangabad. In this view of the matter, while remitting the matter back for fresh consideration, petitioner, who is borrower of Respondent-bank, need to be put to terms. 8 In the result, Writ Petition is allowed. The impugned orders dated 01.06.2009, passed by Deputy Registrar, Co-operative Societies, Aurangabad, in respect of issuance of recovery certificate against the petitioner, is quashed and set aside. Petitioner is directed to deposit amount of Rs.40,000/- (Rs.Forty thousand) before the Deputy Registrar, Co-operative Societies, Aurangabad, as a precondition for fresh consideration of the matter in respect of issuance of recovery certificate in pursuant to the application tendered by the Respondent-Bank, in observance of the directions issued by this Court. Petitioner shall deposit amount of Rs. 40,000/- (Rs.Forty thousand) before the Deputy Registrar, Co- operative Societies, Aurangabad, within a period of four weeks from today. On making deposit of the amount by the petitioner, the Deputy Registrar, Co-operative Societies, Aurangabad, shall take up the application tendered by Respondent-Bank for issuance of recovery certificate for consideration and shall decide same 6 within four weeks thereafter i.e. within eight weeks from today. The Deputy Registrar, Co-operative Societies, Aurangabad, may pass appropriate orders in respect of amount of Rs.40,000/-, that would be deposited by the petitioner, at the time of rendering decision in the application presented by Respondent-Bank under Section 101 of the Maharashtra Co-operative Societies Act, in respect of issuance of recovery certificate. In the event of failure to comply with the direction in respect of deposit of amount by the petitioner, instant order passed in this petition shall be deemed to have been withdrawn and the petition shall be deemed to have been dismissed. 9 Rule is accordingly made absolute. However, in the facts and circumstances of this case, there shall be no order as to costs. (R.M.BORDE) JUDGE ******* adb/wp430509