Case Note & Summary
The petitioner, The Shamrao Vithal Co-op. Bank Ltd., a Multi-State Co-operative Bank, had advanced a loan to one Kalbag and obtained an award against him. The bank then levied execution before respondent no.4, P.V. Rajadhyax, who was designated as the Special Recovery and Sales Officer under Section 156 of the Maharashtra Co-operative Societies Act, 1960 (the 1960 Act). Respondent no.3, claiming to be a purchaser of a flat mortgaged to the bank, filed a Revision Application before the Divisional Joint Registrar, Co-operative Societies, questioning the power of respondent no.4 to execute the award. The Divisional Joint Registrar held that the Multi-State Co-operative Societies Act, 1984 (the 1984 Act) had been repealed by Section 126 of the Multi-State Co-operative Societies Act, 2002 (the 2002 Act) with effect from 19.8.2002, and therefore respondent no.4, appointed under the 1960 Act, had no authority to take recovery action. Consequently, the panchanama for attachment of property on 30.8.2002 was declared null and void. The bank challenged this order by way of a writ petition. The court considered the issue of whether the repeal of the 1984 Act affected the jurisdiction of the Special Recovery Officer appointed under the 1960 Act. The court noted that the award was obtained under the 1960 Act and the officer was validly appointed thereunder. The repeal of the 1984 Act by the 2002 Act did not affect the pending execution proceedings, as Section 6 of the General Clauses Act, 1897, saves rights and liabilities accrued under the repealed enactment. The court held that the Divisional Joint Registrar erred in holding that the officer had no jurisdiction. The impugned order was set aside, and the officer was directed to proceed with the execution in accordance with law.
Headnote
A) Co-operative Law - Jurisdiction of Recovery Officer - Repeal and Saving - Section 156 of Maharashtra Co-operative Societies Act, 1960 and Section 126 of Multi-State Co-operative Societies Act, 2002 - The petitioner, a Multi-State Co-operative Bank, obtained an award against a borrower and initiated execution before a Special Recovery Officer appointed under Section 156 of the 1960 Act. The respondent purchaser challenged the officer's jurisdiction after the 1984 Act was repealed by the 2002 Act. The court held that the repeal does not affect the officer's authority to execute the award, as the award was obtained under the 1960 Act and the officer was validly appointed thereunder. The court relied on Section 6 of the General Clauses Act, 1897, to preserve the pending proceedings. Held that the impugned order was set aside and the officer could proceed with execution (Paras 1-4).
Issue of Consideration
Whether a Special Recovery Officer appointed under Section 156 of the Maharashtra Co-operative Societies Act, 1960, loses jurisdiction to execute an award obtained by a Multi-State Co-operative Bank after the repeal of the Multi-State Co-operative Societies Act, 1984 by the Multi-State Co-operative Societies Act, 2002.
Final Decision
The court allowed the writ petition, set aside the impugned order dated 21.12.2002 passed by the Divisional Joint Registrar, and directed respondent no.4 to proceed with the execution of the award in accordance with law.
Law Points
- Repeal of Multi-State Co-operative Societies Act
- 1984 by Multi-State Co-operative Societies Act
- 2002 does not affect pending recovery proceedings under Maharashtra Co-operative Societies Act
- 1960
- Section 156 of Maharashtra Co-operative Societies Act
- Section 126 of Multi-State Co-operative Societies Act
- 2002
- Section 6 of General Clauses Act
- 1897
