WP 3019 of 09 1 SSK/23 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPLICATION NO. 3019 OF 2009 IN WRIT PETITION NO. 6288 OF 2006 General Manager, Pune Dist. Central Co-operative Bank Ltd. ...Applicant. Versus Harun Ismail Kazi and Ors. ...Respondents Mr. Mangal Bhandari i/b. Ms. Suman Jain, Advocate for the Org.Petitioner. Mr. N. V. Walawalkar, Sr. Advocate i/b. Mr. Vilas B. Tapkir, Advocate for Applicants/Respondent No.2. Mr. Y. S. Bhate, Advocate for Respondent No.3. CORAM : R. V. MORE, J. DATED :26TH JULY, 2010. P.C.: Heard Mr. Walawalkar, learned Senior Counsel and Mr.Bhandari, learned Counsel for the respective parties. 2. The application is preferred by the Original Respondent No.2 for leave to encash the Kisan Vikas Patra pleadged with it and to appropriate the maturity amount towards the loan amount of Respondent Nos.5 to 11. WP 3019 of 09 2 3. The brief facts giving rise to the present application are as follows: The Respondent No.2 is a Trust and Respondent Nos. 5 to 11 are the Trustees of the said Trust. The Respondent Nos.1 and 13 claim to be persons interested. The Respondent Nos. 1 & 13 filed proceedings before Wakf Tribunal for several reliefs including relief for action against Respondent Nos. 5 to 11 for alleged illegal act of pledging of Kishan Vikas Patras with the Applicant-Bank. The said application was dismissed as not maintainable and therefore, the aforesaid writ petition is filed. The said writ petition is admitted after hearing both the sides. 4. The Respondent No.5 to 11 obtained Cash Credit Facility in the year 2002 from the Applicant-Bank by pledging Kisan Vikas Patras having face value of Rs.35,00,000/-. The objection of the Respondent No. 1/Original Petitioner is that the said Respondents could not have obtained Cash Credit Facility without obtaining permission of the Charity Commissioner under section 36 of the Bombay Public Trusts Act, 1950. The question regarding validity of the transaction is sub-judice in the aforesaid writ petition. The fact remains that the said Kisan Vikas Patras have matured on 11th April, 2009. The Kisan Vikas Patras are in the custody of the Applicant-Bank. Now, the question therefore which requires consideration is whether the Applicant-Bank deserves to be allowed to WP 3019 of 09 3 appropriate the maturity amount towards the loan amount of Respondent Nos. 5 to 11 or whether the Applicant be directed to deposit the maturity amount in this Court? 5. According to the Applicant, the amount of Rs.21,00,000/- initially taken by Respondent Nos.5 to 11 by way of cash credit facility in the year 2002. This amount in view of the interest thereon has increased to approximately Rs.73,00,000/-. The Kisan Vikas Patras have matured in April-2009 as stated above and the amount of maturity is Rs.73,00,000/-. If the interest is calculated up to February, 2010 this maturity amount comes to Rs.73,06,250/-. If the maturity amount of Kisan Vikas Patras is directed to be deposited in this Court, in that case the interest on loan amount obtained by Respondent Nos.5 to 11 will go on increasing. If the maturity proceeds of Kisan Vikas Patras are allowed to be appropriated by the Applicant towards the loan account, then, in my opinion, interest of both the parties will be protected in as much as the Applicant-Bank can be directed to compensate the interest of Respondent No.2-Trust in case the Petitioner succeeds. 6. Mr. Walawalkar, learned Senior Counsel for the Applicant infact submits that the Applicant is ready to give an undertaking that in case the Petitioner succeeds, the Applicant shall re-deposit the maturity amount of WP 3019 of 09 4 the Kisan Vikas Patras alongwith interest @ 7.5% p.a. within a period of four weeks from the date of the decision. In the above circumstances, the civil application is allowed in terms of prayer clause (a) subject to the Applicant giving an undertaking within two weeks from today that if the petitioner succeeds, he will re-deposit the maturity amount of Kisan Vikas Patras in this Court and abide by the orders passed by the Court in this regard. 7. The Respondent No.3 shall act upon the authenticated copy of this order. (R. V. MORE, J.)