Arun Mishra, J. - (1.) The question involved in the present matter is whether under the provisions of Section 109 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as 'the Act') on expiry of the period fixed for liquidation, the proceedings for recovery of dues instituted/pending as against the members, shall stand closed.
(2.) Goa, Daman and Diu Cooperative Fisheries Federation Limited (hereinafter referred to as 'the Society') was registered under the Act as it is applicable to Goa. The main objective of the Society was to promote fisheries and improve socio-economic condition of the fishermen by providing necessary financial assistance, in order to enable them to procure mechanized fishing boats/trawlers. During the period from 1974 to 1980, the Society advanced loans to its members to the extent of Rs.316 lacs to purchase engines/hull, winches, nets, etc. by raising loan from the Goa State Cooperative Bank Limited.
(3.) While granting loan to its members, serious irregularities were committed by the Board of Directors of the Society. Due to which, Registrar of Cooperative Societies filed Misfeasance Case No.4/1/80.;