R.F.NARIMAN,J. - (1.) The present appeal is filed by the successful purchaser at an auction held in execution of an order dated 5.10.2010 of the Assistant Registrar of Cooperative Societies passed under Section 76 of the Multi State Cooperative Societies Act, 1984 [hereinafter referred to as "the 1984 Act"]. The brief facts of the present appeal are as follows.
(2.) Respondent No. 3 in the High Court, as Proprietor of M/s Gable Builders, obtained a loan of Rs. 40 lacs from the Mapusa Branch of the Goa State Cooperative Bank Ltd. The said loan was sanctioned for the purpose of construction of a Bungalow. By a deed of mortgage executed on 2.12.1997, the said loan was secured by mortgaging the western part of the scheduled property admeasuring 8000 sq. mts. The principal borrower failed to repay the loan installments. That being so, recovery proceedings were initiated under Sections 74 and 76 of the said Act by the Bank against respondent No. 3 and two sureties of the said loan. The Assistant Registrar of Cooperative Societies, by an Award dated 5.10.2007, noticed that despite being duly served summons by Registered post A.D., all the three opponents remained absent. As a result, an ex -parte award was passed holding all the three opponents jointly and severally liable to pay the loan dues amounting to Rs 55,04,583/ - . It may be mentioned that interest was payable at 21% compounded under the said deed of mortgage dated 2.12.1997.
(3.) A demand notice dated 12.6.2001 was then issued by the Bank under Rule 22 of the Multi State Co -operative Society Rules, 1985 against all the three said persons for a principal amount of Rs. 60,59,646/ - together with further interest at 19% per annum from 1.4.2001 till the date of payment.;