BOMAN P IRANI Vs. MANILAL P GALA

JUDGEMENT

(1.) HEARD counsel for the partie rule. Rule made returnable forthwith, by consent. Mr. Dharmadhikari, Senior Counsel i/b Mr. A. A. Joshi waives notice for Respondents 1 and 2. Mr. M. H. Solkar, A. G. P. waives notice for Respondent No. 3.

(2.) AS short question is involved, petition is taken up for firial disposal forthwith, by consent.

(3.) THIS Writ Petition filed by the Petitioner bank essentially takes exception to the Judgment and Order passed by the Respondent no. 3 dated 23rd July, 2003, directing parties to maintain status-quo till further orders. The background in which the present petition has been filed and the facts relevant for deciding the point in issue, are as follows: (a) The Petitioner Bank had extended loan facilities to M/s. Mahaganesh Texpro Limited, of which, Respondents 1 and 2 were directors at the relevant time. Besides, the respondents 1 and 2 had extended personal guarantees with regard to the loan Facilities extended by the Petitioner Bank. The Petitioner Bank is essentially a co-operative society duly registered under the provisions of the Maharashtra Co-operative Societies Act, 1960. As the said borrower company was in default and in spite of several demands, the outstanding amount was not paid, the Petitioner Bank took recourse to remedy under section 101 of the Maharashtra! Co-operative Societies Act, 1960 (hereinafter referred to as the Act ). In those proceedings, Recovery Certificate has been issued on 30th August, 2001 in favpur of the Petitioner Bank for a sum of Rs. 2,58,94,363/- and against the said Company as well as its directors, including Respondents 1 and 2 herein. In terms of the said Recovery Certificate, Petitioner No. 2, being the Recovery Officer, called upon the concerned to pay the amount, by notice dated 19th September, 2001, being sum of Rs. 3,13,51,800/- along with interest. The Respondents 1 and 2 along with other guarantors, against whom recovery certificate has been issued, preferred Revision Application under Section 154 of the Act. That Revision Application was, however, dismissed on 10th December, 2001. Against that decision, the Respondents Nos. 1 and 2, along with others, filed writ petition in this honble Court being writ petition No. 26 of 2002 (Original Side ). This Honble Court, while entertaining the said writ petition, on 12th February, 2002, passed conditional order, which reads as follows: