-1- wp11614-10 FARAD CONTINUATION SHEET NO. IN THE HIGH COURT OF JUDICATURE AT BOMBAY APPELLATE SIDE, BENCH AT AURANGBAD. -------------------------------------------------------------------------------------------- Office notes, office Memoranda of | coram, appearance, court’s orders |Court’s or Judge’s orders. or directions and Registrar’s orders | WRIT PETITION NO.11614/2010 The Osmanabad D.C.C.Bank & Ors Vs The State of Maha & Ors. .... Shri R.N.Dhorde,Adv.for petitioners. Shri S.K.Kadam,AGP for R-State Shri S.B.Ghute,Adv.for R.4. ... CORAM : NARESH H.PATIL AND S.V.GANGAPURWALA,JJ. DATE : 20/01/2011. 1] Heard learned counsel for respective parties. 2] The grievance of the petitioner is that loan above Rs.200 Crores is advanced under various heads and schemes to respondent Terna Shetkari Sahakari Sakhar Karkhana, Dhoki. The petitioners contention is that in the light of the schemes framed and the -2- wp11614-10 agreements reached and documents executed, the respondent no.4 should operate banking transactions through petitioner bank, which the respondent no. 4 is denying and is reluctant too. The petitioner contends that by communication dated 27/10/2009, this has been brought to the notice of Commissioner of Sugar, Maharashtra State, Pune and by communication dated 3/6/2010 the petitioner expected the Commissioner of Sugar, to exercise powers and take strict action so that interest of the petitioner-bank would be protected. 3] Learned counsel appearing for respondent no.4-Karkhana submits that in the light of the memorandum of understanding signed between the petitioner and the respondent no.4, in the event of any difference of opinion or dispute arising out of or touching the said agreement, the parties shall approach for conciliation purposes the Commissioner of Sugar, Maharashtra State, Pune, who shall act as a sole Arbitrator. 4] Clause 15 of memorandum of -3- wp11614-10 understanding reads as under : “15] In the event of any difference of opinion or dispute arising out of or touching to this Agreements between the Osmanabad DCC Bank/Banks and sugar factory including legality, validity, propriety, interpretation or execution of any of the terms and conditions contained herein or the entire present Agreement cum Memorandum of Understanding itself, the decision of the Commissioner for Sugar, Maharashtra State, Pune, shall be final conclusive and binding upon the Osmanabad DCC Bank/Banks and the Sugar Factory and he shall act as a sole arbitrator. The conciliation and/or arbitration proceeding shall be held, conducted and finalized by the said sole arbitrator at his office at Pune (Maharashtra). The conciliation and/or arbitration proceeding shall be conducted by the arbitrator by observing the principles of natural justice and in a fair and reasonable manner. The arbitrator shall be entitled to pass interim order and/or award and shall pass all the necessary -4- wp11614-10 orders so as to protect the subject matter of the dispute. The Sugar Factory and the Osmanabad DCC Bank/Banks shall bear and pay all the costs and charges of such conciliation and /or arbitration fees in equal proportion.” 5] Shri Dhorde, learned counsel for petitioner on instructions submits that the petitioner would raise appropriate dispute as advised, in tune with the agreement cum memorandum of understanding. 6] The learned counsel further submits that the bank has advanced loan to respondent no.4 under different heads including restructured loan. The submission of the counsel is that the Commissioner of Sugar shall look into the representations in respect of other grievances and issue appropriate directions. 7] From the record placed before us, we find that the petitioners have adequate remedy in respect of the subject matter of agreement cum memorandum of understanding executed between the parties. In respect of other -5- wp11614-10 issues raised by the petitioners, they are entitled to file a comprehensive representation addressed to Commissioner of Sugar, Maharashtra State, Pune within 2 weeks from today. In case the Commissioner of Sugar receives such a representation, we direct the Commissioner of Sugar, Maharashtra State,Pune to consider the same and take appropriate action within 8 weeks and communicate the same to the petitioners. 8] We expressed no opinion on merits. Writ Petition is disposed of. Authenticated copy be given learned A.G.P. (S.V.GANGAPURWALA) (NARESH H.PATIL) JUDGE JUDGE umg/wp11614-10