Case Note & Summary
The judgment arose from two criminal writ petitions filed by a co-operative bank under liquidation and its liquidator, seeking to quash summons and notices issued by the District Consumer Redressal Forum under Section 27 of the Consumer Protection Act, 1986. The petitioners, a co-operative society engaged in banking business, had its licence cancelled by the Reserve Bank of India on 29 December 2008, and the Registrar of Co-operative Societies ordered its winding up on 3 January 2009, appointing a liquidator. The respondents, depositors with the society, had filed complaints before the District Consumer Forum under Section 12 of the Consumer Protection Act, which were allowed on 9 January 2015, directing refund of deposits with interest. Execution proceedings were initiated, and when the society failed to comply, the respondents moved under Section 27, the penal provision of the Act, leading to the issuance of summons and notices requiring the petitioners to furnish bail. The petitioners contended that Section 107 of the Maharashtra Co-operative Societies Act, 1960, imposed a complete bar on any proceeding against a society under winding up without the leave of the Registrar, and that the penal proceedings under the Consumer Protection Act were therefore without jurisdiction. They also argued that allowing such recovery would prejudice other creditors. The respondents countered that Section 107 only bars civil proceedings, not criminal actions, and that the proceeding under Section 27 is criminal in nature, governed by the Code of Criminal Procedure. They also raised a preliminary objection that the petitioners had suppressed the pendency of earlier writ petitions filed against rejection of similar objections. The court, after considering the statutory provision, held that Section 107 on a plain reading only bars civil suits and other legal proceedings of a civil nature. The words 'other legal proceeding' are to be interpreted ejusdem generis with the preceding word 'suit', and the heading 'Bar of Suit' and the reference to 'Civil Court' clearly indicate that the legislature intended to regulate only civil litigation. Consequently, criminal proceedings under Section 27 of the Consumer Protection Act are not barred, and the District Forum had jurisdiction to issue the impugned process. The writ petitions were dismissed.
Headnote
A) Co-operative Societies - Winding up and Dissolution - Bar of Suit - Maharashtra Co-operative Societies Act, 1960, Section 107 - Consumer Protection Act, 1986, Section 27 - Interpretation - The court held that Section 107 only bars civil suits and other legal proceedings of a civil nature against a society under liquidation, and does not bar criminal proceedings including those under Section 27 of the Consumer Protection Act which are criminal in nature. The words 'other legal proceeding' must be interpreted ejusdem generis with 'suit'. Therefore, the District Consumer Forum's summons/notices were not without jurisdiction. Held that the writ petitions lack merit and are dismissed. (Paras 9-10)
Issue of Consideration
Whether criminal proceedings under Section 27 of the Consumer Protection Act, 1986 are barred by Section 107 of the Maharashtra Co-operative Societies Act, 1960 against a co-operative society under liquidation.
Final Decision
The writ petitions are dismissed. Rule discharged. The court held that Section 107 of the Maharashtra Co-operative Societies Act, 1960 only bars civil suits and other legal proceedings of a civil nature, and does not bar criminal proceedings under Section 27 of the Consumer Protection Act. The summons/notices issued by the District Consumer Forum are not without jurisdiction.
Law Points
- Legal points not extracted
- Section 107 of Maharashtra Co-operative Societies Act only bars civil suits and other civil legal proceedings
- not criminal proceedings
- interpretation of 'other legal proceeding' ejusdem generis with 'suit'
- bar of suit in winding up and dissolution matters
Case Details
2026 LawText (BOM) (06) 233
Criminal Writ Petition No. 934 of 2017 with Criminal Writ Petition No. 1406 of 2017
Mr. V.D. Hon, Mr. Ashwin V., Mr. V.M. Kagne, Mr. P.B. Patil, Mr. S.P. Shah
Shri P. K. Anna Patil Janta Sahakari Bank Ltd., Nandurbar (Under Liquidation) Through its Branch Manager Kashinat s/o Vanji Patil and its Liquidator Manoj s/o Madhukar Choudhari (in Writ Petition No. 934 of 2017); Shri P. K. Anna Patil Janta Sahakari Bank Ltd., Nandurbar Through its Liquidator Manoj s/o Madhukar Choudhari and its General Manager Yashwant Sena Mohite (in Writ Petition No. 1406 of 2017)
State of Maharashtra, Deputy Insurance Credit Guarantee Corporation, Smt. Ratnakour Bhikesingh Rajput and others (in Writ Petition No. 934 of 2017); State of Maharashtra, Shri Punabhai Hari Patil, Bharatbhai Punaji Patil (in Writ Petition No. 1406 of 2017)
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Nature of Litigation
Criminal writ petitions under Section 482 CrPC and Articles 226/227 seeking to quash summons/notices issued by District Consumer Forum in execution proceedings under Section 27 of Consumer Protection Act against a co-operative society under liquidation.
Remedy Sought
Petitioners (co-operative bank under liquidation and its liquidator) sought quashing of summons/notices issued by District Consumer Forum.
Filing Reason
The District Consumer Forum had issued summons/notices under penal provisions of Consumer Protection Act for non-compliance of its order directing refund of deposits with interest. Petitioners contended such proceedings are barred by Section 107 of the Maharashtra Co-operative Societies Act, 1960 without leave of the Registrar.
Previous Decisions
The respondents had filed complaints before District Consumer Forum which were allowed on 09.01.2015. Execution proceedings were initiated. The petitioners had earlier filed Civil Writ Petition Nos. 7021 of 2015 and 7084 of 2015 challenging the rejection of similar objections, which were pending.
Issues
Whether criminal proceedings under Section 27 of the Consumer Protection Act, 1986 against a co-operative society under winding up are barred by Section 107 of the Maharashtra Co-operative Societies Act, 1960.
Submissions/Arguments
Petitioners argued that Section 107 of the Maharashtra Co-operative Societies Act imposes a complete bar on all proceedings against a society under liquidation without leave of the Registrar, covering criminal proceedings as well, and that permitting such proceedings would deprive other depositors of their rightful share in liquidation proceeds.
Respondents argued that Section 107 only bars civil proceedings and not criminal actions, that the proceedings under Section 27 are criminal in nature governed by the Code of Criminal Procedure, and that the writ petitions are not maintainable due to suppression of earlier writ petitions pending before the same court.
Ratio Decidendi
Section 107 of the Maharashtra Co-operative Societies Act, 1960, on a proper reading, only bars civil suits and other legal proceedings that are ejusdem generis with a suit, and does not extend to criminal proceedings. The heading 'Bar of Suit' and the use of 'Civil Court' indicate the intent to regulate only civil proceedings, not criminal ones. Therefore, proceedings under Section 27 of the Consumer Protection Act, which are penal and criminal in nature, are not barred, and the District Consumer Forum has jurisdiction to issue summons/notices without leave of the Registrar.
Judgment Excerpts
A common question of fact and law which calls for decision in these writ petitions under Section 107 of the Maharashtra Co-operative Societies Act,1960 is as to whether even a criminal proceeding against a society under winding up or under liquidation is barred.
Perusal of the provision carefully clearly shows that though the heading only refers to bar of suit the body of the provision also mentions 'no suit or other legal proceeding'. ... However, a provision has to be read in its entirety in order to understand its true purport and if so read, the words 'other legal proceeding' can be interpreted ejusdem generis, with the word 'suit' preceding thereto.
The use of words civil Courts fur ther puts the controversy as to the interpretation at rest. A complete reading of the provision of Section 107 makes it abundantly clear that the legislature had only provided for regulating civil proceedings to be instituted against Co-operative Societies which are under winding up or liquidation process.
Procedural History
In 2008, RBI cancelled the banking licence of petitioner no. 1 society on 29.12.2008. On 03.01.2009, Registrar of Co-op Societies ordered winding up and appointed liquidator. Respondents deposited money and filed complaints before District Consumer Forum under Section 12 CPA. Forum allowed claims on 09.01.2015 and directed refund with interest. Execution proceedings initiated. Petitioners objected to jurisdiction citing Section 107 MCS Act; objections rejected. Petitioners filed Civil Writ Petition Nos. 7021/2015 and 7084/2015 (pending). Subsequently, respondents initiated proceedings under Section 27 CPA (penal), and the forum issued summons/notices to petitioners. Petitioners filed the present criminal writ petitions seeking quashing.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 107
- Banking Regulation Act, 1949: 22
- Consumer Protection Act, 1986: 12, 27
- Code of Criminal Procedure, 1973: 482
- Constitution of India: 226, 227
