Case Note & Summary
The petitioner, TJSB Sahakari Bank Ltd., a multi-state cooperative bank, filed a writ petition under Article 227 of the Constitution of India challenging the judgment and order dated 30th June 2023 passed by the learned Cooperative Appellate Court, Maharashtra State, Mumbai, in Appeal No. 10 of 2022. The Appellate Court had dismissed the petitioner's appeal and confirmed the recovery certificate dated 31st March 2022 issued by the learned Cooperative Court, Thane, in Recovery Application No. 10 of 2019. The dispute arose from a loan transaction where the respondents (borrowers and guarantors) had taken a loan from the bank and defaulted. The bank initiated recovery proceedings under the Multi-State Cooperative Societies Act, 2002. The Cooperative Court allowed the recovery application and issued a recovery certificate. The respondents appealed, but the Appellate Court dismissed the appeal. The bank then approached the High Court under Article 227. The High Court examined the scope of its supervisory jurisdiction under Article 227 and held that it does not sit as an appellate court. It found that the Cooperative Court and Appellate Court had concurrently held that the loan was disbursed, the respondents had executed loan documents, and they had defaulted. The High Court noted that the findings were based on evidence and were not perverse. The court also observed that the respondents had not raised any valid defence and that the bank had complied with the principles of natural justice. Consequently, the High Court dismissed the writ petition, upholding the recovery certificate and the concurrent findings of the courts below.
Headnote
A) Constitutional Law - Article 227 - Scope of Supervisory Jurisdiction - High Court's power under Article 227 is supervisory and not appellate - It does not extend to re-appreciating evidence or correcting errors of fact or law unless the findings are perverse or based on no evidence - The court must be satisfied that the subordinate court has acted without jurisdiction or in excess of it or has failed to exercise jurisdiction vested in it (Paras 6-7). B) Cooperative Law - Multi-State Cooperative Societies Act, 2002 - Recovery of Dues - Sections 84, 85, 86 - The Cooperative Court and Appellate Court have concurrent jurisdiction to adjudicate disputes relating to recovery of dues - The recovery certificate issued under Section 86 is final and binding unless set aside in appeal - The High Court under Article 227 will not interfere with concurrent findings of fact unless they are perverse (Paras 8-10). C) Evidence Law - Perversity of Findings - Standard of Review - A finding is perverse if it is based on no evidence or if the court has ignored vital evidence or has drawn inferences which no reasonable person could draw - The burden is on the petitioner to demonstrate perversity - Mere possibility of a different view is not sufficient (Paras 11-12).
Issue of Consideration
Whether the impugned judgment and order passed by the learned Cooperative Appellate Court in Appeal No. 10 of 2022, confirming the recovery certificate issued by the learned Cooperative Court, warrants interference under Article 227 of the Constitution of India.
Final Decision
The High Court dismissed the writ petition, upholding the judgment of the Cooperative Appellate Court and the recovery certificate issued by the Cooperative Court. The court found no perversity or jurisdictional error in the concurrent findings of the courts below.
Law Points
- Scope of Article 227 of the Constitution of India
- Multi-State Cooperative Societies Act
- 2002
- Recovery of dues by cooperative banks
- Concurrent findings of fact
- Perversity of findings
- Natural justice
