{"id":210760,"date":"2008-07-10T00:00:00","date_gmt":"2008-07-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/dilipbhai-vs-state-on-10-july-2008"},"modified":"2015-06-21T07:07:44","modified_gmt":"2015-06-21T01:37:44","slug":"dilipbhai-vs-state-on-10-july-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/dilipbhai-vs-state-on-10-july-2008","title":{"rendered":"Dilipbhai vs State on 10 July, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Dilipbhai vs State on 10 July, 2008<\/div>\n<div class=\"doc_bench\">Bench: Ravi R.Tripathi<\/div>\n<pre>  \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n \n \n\n\n\t \n\nSCA\/7842\/2008\t 6\/ 6\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 7842 of 2008\n \n\nWith\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 7843 of 2008\n \n\nTo\n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 7844 of 2008\n \n\nwith\n \n\nSPECIAL\nCIVIL APPLICATION No.7892 of 2008\n \n \n=================================================\n \n\nDILIPBHAI\nNANJIBHAI PATEL &amp; 1 - Petitioner(s)\n \n\nVersus\n \n\nSTATE\nOF GUJARAT &amp; 2 - Respondent(s)\n \n\n=================================================\n \n\n \nAppearance\n: \nMr.MIHIR\nJOSHI, SENIOR ADVOCATE WITH Mr.VIMAL M PATEL for Petitioners in SCAs\nNo.7842\/08, 7843\/08 &amp; 7844\/08; \n\n \n\nMr.P.S.\nChampaneri, learned advocate in SCA No.7870\/08; and \n\n \n\nMr.Manav\nA. Mehta, learned advocate in SCA No.7892\/08.\n \n\n   \nMr.APURVA\nDAVE, ASST GOVERNMENT PLEADER for Respondent(s) : 1, \nDS AFF.NOT\nFILED (N) for Respondent(s) : 1 - 2. \nNOTICE SERVED for\nRespondent(s) : 2, \nNOTICE SERVED BY DS for Respondent(s) : 3, \nMR\nTUSHAR MEHTA for Respondent(s) :\n3, \n=================================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE RAVI R.TRIPATHI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 10\/07\/2008 \n\n \n\n \nCOMMON\nORAL ORDER<\/pre>\n<p>\tHeard<br \/>\nlearned senior advocate Mr.Joshi, with Mr.Vimal M. Patel, learned<br \/>\nadvocate for the petitioners (SCAs No.7842\/08, 7843\/08 &amp;<br \/>\n7844\/08), Mr.P.S. Champaneri, learned advocate for petitioners in SCA<br \/>\nNo.7870\/08 and Mr.Manav A. Mehta, learned advocate for petitioners in<br \/>\nSCA No.7892\/08.\n<\/p>\n<p>2.\tRule.\n<\/p>\n<p>3.\tMr.Apurva<br \/>\nDave, learned Assistant Government Pleader for the respondent-State<br \/>\nvehemently opposes grant of interim relief.  He submitted that the<br \/>\nState Cooperative Tribunal has passed order after taking into<br \/>\nconsideration all the relevant aspects; therefore, interim relief is<br \/>\nnot required to be granted.\n<\/p>\n<p>4.\tTaking<br \/>\ninto consideration the peculiar facts of the case, which are also set<br \/>\nout in detail in the judgement and order dated 16th March<br \/>\n2006 of this Court (Coram: M.S. Shah &amp; Sharad D. Dave, JJ.)  in<br \/>\nSpecial Civil Applications No.15859\/ 04, 15862\/ 04 and 15863\/04, more<br \/>\nparticularly, in paras 9, 10, 11 and 12, which read as under:\n<\/p>\n<p>\u00fdS9.\t\tIt is further<br \/>\nsubmitted by the learned counsel for the petitioners that when they<br \/>\nwere in office, they had already initiated recovery proceedings<br \/>\nincluding filing of complaints under Section 138 of the Negotiable<br \/>\nInstruments Act and also the summary suit, but it is the<br \/>\nadministrator appointed by the State Government, who entered into MOU<br \/>\nwith the defaulting party being C.R. Bhansali, proprietor of CRB<br \/>\nCapital Ltd. on 26.9.2002, foregoing interest on the entire amount of<br \/>\nRs.3 Crores which was agreed to be repaid by the defaulter in ten<br \/>\nannual installments and it is the administrator appointed by the<br \/>\nState Government who agreed to stay all recovery proceedings,<br \/>\nincluding the criminal proceedings pending in the Court of the<br \/>\nlearned Chief Metropolitan Magistrate, Ahmedabad under Section 138 of<br \/>\nthe Negotiable Instruments Act.\n<\/p>\n<p>It is also pointed out<br \/>\nthat the aforesaid MOU was entered into by the administrator after<br \/>\nobtaining approval of the Joint Registrar (Advance) of the<br \/>\nCo-operative Societies, Gujarat State on 23.9.2002. It is, therefore,<br \/>\nsubmitted that the State Government which itself has stayed recovery<br \/>\nproceedings, cannot be permitted to accuse the former Directors of<br \/>\nany default or any mala fide intention which is necessary for<br \/>\ninvoking powers under Section 93 of the Act as well as under Section<br \/>\n76B of the Act.\n<\/p>\n<p>10.\t\tHaving heard the<br \/>\nlearned counsel for the petitioners, we find that in view of the stay<br \/>\nof recovery proceedings granted by the Administrator, the petitioners<br \/>\ncould not have been required to make the payment of the amounts<br \/>\ndetermined under Section 93 of the Act and, therefore, the learned<br \/>\nSingle Judge was justified in granting the interim relief on<br \/>\n21.12.2004. But now upon our having granted interim stay of the MoU<br \/>\ndated 26.9.2002 between the Administrator and CR Bhansali of CRB<br \/>\nCapitals Ltd., the recovery proceedings can now be proceeded with and<br \/>\nthere will be no impediment to any recovery being made from CR<br \/>\nBhansali and others who are liable to repay the amounts to Baroda<br \/>\nDistrict Central Cooperative Bank Ltd. But considering the fact that<br \/>\nthe liability determined by the Registrar under Section 93 of the Act<br \/>\nis to the tune of Rs.3 Crores approximately and that the condition<br \/>\nimposed by the Tribunal for granting stay in favour of the<br \/>\npetitioners comes to hardly about 10 to 15%  of their liability<br \/>\ndetermined under Section 93, the interim orders passed by the<br \/>\nTribunal do not require any interference in so far as the Tribunal<br \/>\nhas imposed the condition of depositing certain amounts by the<br \/>\npetitioners herein.\n<\/p>\n<p>11.\t\tIn the facts and<br \/>\ncircumstances of the case, however, it also appears  to the Court<br \/>\nthat the interests of justice would be served if the petitioners are<br \/>\ngranted some time to pay the amounts as stipulated in the conditional<br \/>\nstay order passed by the Tribunal.  At the same time, since the order<br \/>\nof the District Registrar imposing disqualification under Section 76B<br \/>\nwas passed  on the basis of orders under Section 93 of the Act and<br \/>\nthe Tribunal has granted conditional interim stay, we are of the view<br \/>\nthat the petitioners have made out a case for staying the direction<br \/>\nfor disqualification, subject to compliance  with the conditions<br \/>\nstipulated by the Tribunal in the interim stay orders and subject to<br \/>\ncompliance with the final orders, if any, which may be passed at the<br \/>\nfinal hearing of the appeals by the Tribunal.\n<\/p>\n<p>12.\t\tThese petitions<br \/>\nare accordingly partly allowed in so far as the Tribunal did not<br \/>\ngrant any interim stay against any disqualification proceedings<br \/>\narising from the liability under Section 93 of the Act. During<br \/>\npendency of the appeals before the Tribunal, there shall be stay<br \/>\nagainst disqualification arising from the liability under Section 93<br \/>\nof the Act, provided the respective petitioners deposit, without<br \/>\nprejudice to their rights and contentions, the amounts as stipulated<br \/>\nin the interim stay orders passed by the Tribunal. As far as the<br \/>\namounts stipulated by the Tribunal in the said conditional stay<br \/>\norders are concerned, we do not interfere with the said conditions<br \/>\nbut grant the petitioners time to deposit the amounts as stipulated<br \/>\nin the interim stay orders of the Tribunal in six equal monthly<br \/>\ninstallments commencing from 10th April 2006. The Tribunal<br \/>\nshall endeavour to complete the hearing and decide the appeals by<br \/>\n31st December 2006.\n<\/p>\n<p>Rule is accordingly<br \/>\nmade absolute only to the aforesaid extent with no order as to<br \/>\ncosts.\u00fd\u00fd<\/p>\n<p>and<br \/>\ntaking into consideration the averments made in grounds (N) and (O),<br \/>\nwhich read as under.\n<\/p>\n<p>\u00fdS(N)\t\tThat similar<br \/>\nother banks have deposited the money with the said bank including<br \/>\nGIIC, which is a government undertaking.  Similar inquiry was<br \/>\nconducted against the directors of Mehsana District Madhyasth Sahkari<br \/>\nBank Ltd.  and Kheralu nagrik Sahkari Bank Ltd wherein the inquiry<br \/>\nofficer for the similar act of deposit by the aid Bank with the said<br \/>\ncompany came to the conclusion that there is no gross negligence and<br \/>\nno action has been taken.  However, the petitioners have been<br \/>\ndiscriminated and liability has been fastened u\/s 93 of the aid Act<br \/>\nfor the similar act of deposit made with the said company.<br \/>\nTherefore, the act of respondent no.2 is in violation of Article 14<br \/>\nof the Constitution of India and action has been taken with a mala<br \/>\nfide intention to see that the petitioners do not participate in<br \/>\nfuture elections that may be held with the respondent no.3 and in<br \/>\nrespect of other similar societies.\n<\/p>\n<p>(O)\tThat, on one hand<br \/>\nthe respondent no.1 has entered into a Memorandum of Understanding<br \/>\nwith the said company whereby the execution proceedings and the<br \/>\ncriminal proceedings are stayed sine die and proceeding are initiated<br \/>\nagainst the petitioners fastening the liability u\/s 93 of the said<br \/>\nAct and recovery for the very same dues which can be legally<br \/>\nrecovered pursuant to the execution proceedings and criminal<br \/>\nproceedings from the said company.  The said conduct itself shows the<br \/>\nmala fide motive of the respondents to fasten the liability u\/s 93 of<br \/>\nthe said Act with a sole intention to initiate disqualification<br \/>\nproceedings arising from the liability u\/s 93 of the said Act.\u00fd\u00fd<\/p>\n<p>the<br \/>\nCourt deems fit to grant interim relief.   Interim relief in terms of<br \/>\npara 23(B) in Special Civil Applications No.7842\/08,  7843\/08 &amp;<br \/>\n7844\/08; para 7(B) in Special Civil Applications No.7870\/08 &amp;<br \/>\n7892\/08 is granted.  Direct service is permitted.\n<\/p>\n<p>(RAVI R. TRIPATHI, J.)<\/p>\n<p>karim<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Dilipbhai vs State on 10 July, 2008 Bench: Ravi R.Tripathi SCA\/7842\/2008 6\/ 6 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 7842 of 2008 With SPECIAL CIVIL APPLICATION No. 7843 of 2008 To SPECIAL CIVIL APPLICATION No. 7844 of 2008 with SPECIAL CIVIL APPLICATION No.7892 of 2008 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-210760","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dilipbhai vs State on 10 July, 2008 - Free Judgements of Supreme Court &amp; 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