Bombay High Court The Maharashtra State Cooperative Bank ... vs The State Of Maharashtra Through Its ... on 2 June, 2008 JUDGMENT N.V. Dabholkar, J. 1. All ten writ petitions, together with four surviving civil applications therein, are being considered together, for disposal. Common factor in all these matters, is Godavari Dudhna Sahakari Sakhar Karkhana Ltd. at and post office Dev Nandra, Taluka Pathri, District Parbhani (henceforth, referred to as "the sick factory"). The sick factory has come to grinding halt, so far as its business of production of sugar is concerned. After interim order of liquidation under Section 102 of the Maharashtra Cooperative Societies Act, 1960 ("MCS Act" for brevity's sake) dated 14.3.2002, finally, liquidation of the said sick factory, which is a specified cooperative society under Section 73G of the MCS Act; is ordered on 15.5.2002. During the period the sick factory is under liquidation, there had been oscillation of decisions by the authorities under the MCS Act, regarding fate of the sick factory, whether to run it by granting lease or to effect sale of the same for satisfying its debts. This is because, the sick factory is heavily indebted to the Apex Bank of the Cooperative Sector in the State, i.e. The Maharashtra State Cooperative bank. ("MSC Bank" for brevity's sake). 2. The Petitioners in ten petitions and reliefs prayed by each of them can be grouped for convenient reference as under; First Writ petition No. 1278 of 2004 is filed by MSC Bank, which claims to be a secured creditor quay the sick factory under liquidation. By the writ petition, as it stood before amendment to the pleadings on 6.7.2004, the MSC Bank prayed for a writ of prohibition against respondent Nos. 1 to 5 from transferring or dealing with the assets of the sick factory in any manner whatsoever to any third party, including respondent No. 6. (Respondent No. 6 henceforth, shall be referred to as "Ratnaprabha Sugars". It is the purchaser of the sick sugar factory at the auction held in January 2004). Respondent Nos. 1 to 3 in this writ petition, are the authorities under the MCS Act and Respondent Nos. 4 and 5 are the managing directors of the sick factory. By amended pleadings, the MSC Bank also prayed that Respondent Nos. 1 to 3 and 5 may be directed to handover the entire assets of the sick factory under liquidation to the petitionerMSC bank in pursuance of the notice dated 14.8.2003 issued by the Bank under Section 13(2) of the Securatization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (Henceforth, referred to as "the Securatization Act" for the sake of brevity.) By further amendment, granted on 28.11.2006, the MSC Bank challenges the decision of Respondent No. 1State dated 4.10.2006, on subject No. 6 which relates to the said factory in liquidation. By this decision, a committee titled as "Mantri Samiti" i.e. "Ministers' Committee" has resolved to cancel the decision dated 10.2.2004, by which it was decided to accept the tender of Ratnaprabha Sugars. It was further decided that, action should be taken to allow the sick factory to be run on lease, after vacation of "statusquo" ordered by this Court. By this prayer inserted as a result of second amendment, the MSC Bank now opposes the decision of cancellation of sale in favour of Ratnaprabha Sugars and letting out of sick sugar factory to be run on lease. Further prohbition/injunction against possible leasing out of the sick factory by Respondent Nos. 1 to 5, is prayed for and directions are solicited to Respondent Nos. 1 to 5, that they should allow the MSC Bank to deal with the assets of the sick factory, as the secured creditor, in accordance with the law, presumably; the Securatization Act. We may state here itself that this Court vide order dated 24.3.2004 in this writ petition, has ordered statusquo in following terms; Parties to maintain statusquo in relation to the properties in question" This order is confirmed after hearing parties when rule was issued by an order dated 29.7.2004. By orders passed in Civil Application Nos. 2805 of 2005, 5420 of 2006 and 8848 of 2006, on 28.11.2006, this Court has allowed intervention by respective applicants. The applicants in these applications, are the membersshareholders, cane growers, workers/union and suppliers of other material. In this writ petition, there are couple of civil applications as under, which are still surviving. By civil application No. 10216 of 2006, the State and the authorities under the MCS Act, have prayed for vacation of interim order "statusquo" clamped by order dated 29.7.2004. This application can be disposed of simultaneously with disposal of the writ petition. Another civil application No. 10091 of 2007, by the MSC Bank prays; A. Grant this civil application and confirm the sale in favour of Respondent No. 5 Ratn