1 srk IN THE HIGH COURT OF JUDICATURE AT BOMBAY Appellate Side Civil Application No.2357 of 2009 In Review Petition No.57 of 2008 In Writ Petition No.1572 of 2008 The Saraswat Co-operative Bank Ltdd., Nashik Applicant Vs. M/s. Sapna Talkies & anr. Respondents Mr.H.S.Venegaonkar for applicant Mr.P.L.Bhujbal for respondent no.1. Mr.Anilkumar Patil for respondent no.2. CORAM: B.H.MARLAPALLE,J. October 15, 2009. P.C. 1. Heard the learned counsel for the parties. 2. Further to the order dated 5th June 2008 the applicant – Bank now states that the sale proceedings have been completed and the total amount of sale proceeds is at Rs. 2,15,00,000/- (Rupees two crores fifteen lakhs only). In the 2 order dated 5th June 2008 the said amount was directed to be deposited with the Co-operative Court at Nashik by the Saraswat Co-operative Bank and the disbursement of the said amount was to be in keeping with the decree to be passed by the Co-operative Court. The parties were required to apply to the Co-operative Court for disbursement of the amount. 3. It is now stated that the Co-operative Court decided the pending matter on 24/9/2008 i.e. before the bid was finalised and hence this application has been filed for disbursement of the sale proceeds. 4. It is stated that the statutory dues like taxes are to the tune of Rs.65,00,000/- (Rupees sixty five lakhs only), thus leaving the net balance from the sale proceeds at Rs. 1,50,00,000/- (Rupees one crore fifty lakhs only). The recovery of the applicant – Bank at Rs.40,00,000/- (Rupees forty lakhs only) is not much in dispute. However, Mr.Bhujbal has disputed the claim of Godawari Urban Co-operative Bank Ltd. and stated that it cannot claim the balance amount of Rs.1,10,00,000/- (Rupees one crore ten lakhs only). 3 5. Copies of the decree passed by the Co-operative Court were shown to me and the principal amount of both the decrees together is Rs.35,00,000/- (Rs.25,00,000/- + Rs. 10,00,000/-). In addition, the Co-operative Court has allowed simple interest at the rate of 20 per cent per annum from May 1998. Thus the interest amount is payable for the last eleven years and if so calculated the total recovery exceeds Rs. 1,10,00,000/-. Mr.Bhujbal has stated that the sale is not in keeping with the Rules. However, it is not disputed as of now that the decree passed by the Co-operative Court has not been challenged by filing an appeal before the Co-operative Appellate Court. Hence it is directed that the sale proceeds amount of Rs.2,15,00,000/- be disbursed as under: (a) Rs.65,00,000/- (Rupees sixty five lakhs only) towards taxes and statutory dues; (b) Rs.40,00,000/- (Rupees forty lakhs only) to Saraswat Co-operative Bank Ltd. (c) Rs.1,10,00,000/- (Rupees one crore ten lakhs only) to Godawari Urban Co-operative Bank Ltd. 4 6. It is made clear that in case the recoveries of taxes and other statutory dues are less than Rs.65,00,000/-, the balance amount be paid to Sapana Talkies. It is further made clear that this order does not come in the way of the property owner to challenge the auction sale as may be permissible under the Rules and the amount so disbursed shall be subject to such final adjudication. 7. Civil application is disposed off accordingly. (B.H.MARLAPALLE,J.)