1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR. W. P. No. 3142 of 2008. Dr. Pandurangji Mahadeo Dharmadhikari & others V. The State of Maharashtra and 17 Others. Office Notes, Office Memoranda of Coram appearances, Court's orders or directions Court's or Judge's Orders and Registrar's orders. Shri A. M. Ghare, Advocate with L. H. Kothari Advocate for the petitioner. Mrs. T. D. Khade, AGP for Respondents no.1 to 4. Shri V. V. Bhangde, Advocate for R-5 & 6. Coram : B.H. Marlapalle and A.H. Joshi, JJ. Dated : 1st December, 2008. 1. This is a petition by few depositors of the Respondent No. 5, a Co-operative Bank. During pendency of the writ petition, the Respondent No.5 has been ordered to be liquidated. 2. In view of fact of liquidation, the prayers, which survive as against the Respondents No. 1, 2 & 6 and also as against Respondents , are as follows:- (A) Direct the Respondent Nos.1,2 & 6 to hold departmental inquiry against the Officers or persons who were responsible for not taking urgent and immediate action against the Respondent NO.7 Bank and its Directors and 2 give them longer time to perpetuate the illegality. (A-1) Direct the Respondent No.3 – The Divisional Joint Registrar, Co-operative Societies, Amravati, to appoint Recovery Officer as provided in Section 156 of the Maharashtra Co-operative Societies Act, 1960 forthwith. (A-2) Direct the District Deputy Registrar, Co-operative Societies, Amravati, to decide the 101 proceedings filed by the Respondent No.7 – Bank i.e. Achalpur Urban Co-operative Bank Ltd., within period of one month from today. [Quoted from page 31 & 31-A of the Writ Petition Paper Book] 3. Pursuant to the order passed by this Court on 21-10-2008, the Registrar Co-operative Societies and Commissioner of Cooperation Maharashtra State has filed affidavit and stated certain facts and assurances. It shall suffice to refer to few amongst those as follows :- (a) First Information Reports have been lodged against the Directors of Bank, Officers/ employees and borrowers who were prima facie seen involved in offences against the Bank. (b) Proceedings for recovery under Section 101 of Maharashtra Co-operative Societies Act, are initiated against the defaulting borrowers and those are in progress. 3 (c) Enquiry under Section 88 of Maharashtra Co- operative Societies Act, against the responsible directors/employees shall be completed within 6 months. (d) Disciplinary action would be taken against Officer if negligence in conducting enquiry under Section 88 is found on the part of Officer incharge. (e) Payment of deposits of those governed by DICGC shall be released after receiving sanction and amount from DICGC i.e. whose deposits are below 1 lakh, and of those not covered shall be dealt with by the liquidator, upon recoveries in accordance with law. 4. Other prayer which does not pertain to the respondent No.5 is prayer 'B,' of the petition which reads as follows: (B) Direct the Respondent Nos.5 & 6 to publish or notify each quarter of the year list of all those Banks and Banking Companies which are presently sick and/or under going rehabilitation scheme or programme under Reserve Bank of India's directives. (Quoted from page 31 of the Writ Petition Paper Book) 5. This prayer is embracing a wider compass, far beyond the activities of the respondent No.5, in the wake 4 of lack of proper and effective controls by State Government through Registrar Co-operative Societies and by the RBI in general. 6. The reply to the issue covered by prayer 'B' filed by the State Government through Co-operative Societies is rather evasive, suggesting that on fiscal behaviour of urban banks, the RBI exercises the control. All that can be observed from what appears prima facie is that 'holistic analysis and solution' approach has not been resorted by these respondents. This aspect is, however, left open to be decided later in a comprehensive petition on this point. 7. This petition, being primarily filed for protecting the interest of the depositors of Respondent no.5 is reasonably taken care of by the affidavit of the Registrar of Co-operative Societies and Commissioner of Co-operation Maharashtra State. 8. We accept the assurances and undertakings given therein and further direct that he shall seek from the Joint Registrar Co-operative Societies supervising the liquidator a quarterly report of actions taken by him, recoveries by 5 use of Section 101 and Section 88 of Maharashtra Co- operatives Societies Act, and phased programme of distribution to depositors, and notify the same to the depositors. 9. In view of above, this petition is disposed off in terms of observations/directions contained in foregoing paras. JUDGE JUDGE /Muley/