Siddheshwar Sahakari Sakhar Karkhana Ltdthrought Its Managing Director v. State of Maharashtra and Anr.

Bombay HC18 Dec 2024WP/12114/2024

Case brief

AI extract

What is this about?

Writ petition by a multi-state co-operative sugar factory challenging the State's refusal to disburse loans under a Government Resolution dated 4 May 2023 while granting loans to defaulting factories. The court directed the State to file an affidavit-in-reply and listed the matter for ad-interim relief.

What did the court decide?

State directed to file affidavit-in-reply by 24 September 2024; sanctioned loans disburseable subject to outcome of petition; matter listed for ad-interim relief on 25 September 2024.

Siddheshwar Sahakari Sakhar Karkhana Ltdthrought Its… — Cooperative Societies | Bombay HC (2024)

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

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WRIT PETITION NO. 12114 OF 2024

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Siddheshwar Sahakari Sakhar Karkhana

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.. Petitioner

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Versus

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Digitally signed byASHVINI ASHVINIBAPPASAHEB BAPPASAHEBKAKDE KAKDE Date: 2024.09.02 14:50:30 +0530

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State of Maharashtra & Anr.

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.. Respondents

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Mr.Surel Shah a/w.Mr. Rushikesh Barge, Advocates for the Petitioner.

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Dr. Birendra B. Saraf, AG with Mr. P. P. Kakade, G. P., Mr. B. V. Samant, Addl. GP., Mr. Y. D. Patil, AGP for Respondent/State.

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CORAM: B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE: AUGUST 28, 2024

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P. C.

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Dr. Saraf, the learned Attorney General appearing on behalf of the State sought time to file an Affidavit in Reply to the above Writ Petition and sought to justify the action of the State in disbursing the loans to several other sugar factories and not to the present Petitioner.

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The case of the Petitioner, in a nutshell, is that the exercise of this power by the State is a colorable exercise, in as much as, even though the Petitioner is not a defaulter in payment of any of its loans, and it fulfills the conditions set out in the Government Resolution dated 4^th May 2023, several

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Page 1 of 3 AUGUST 28, 2024

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Ashvini Narwade

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loans have been disbursed to sugar factories who are admittedly defaulters. The only reason given for rejecting the proposal of the Petitioner is the fact that the Petitioner is a Multi State Co-operative Society and in the event the Petitioner defaults in repaying a loan, it will be difficult for the State to recover the same from the Petitioner. According to the Petitioner, the GR dated 4^th May, 2023 does not anywhere state that loans would not be disbursed to multi state co-operative societies.

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In the above matter, we are of the view that it is imperative that the State shall file a Reply bringing on record, not only justifying the rejection of the Petitioner’s proposal, but also the loans disbursed to several other sugar factories and what is their status with reference to defaults, if any, committed by them in repaying any earlier loans.

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We make it clear that the State can proceed to disburse the loans which are already sanctioned but the same will be subject to the outcome of the above Petition. We also make it clear that in the event the Petition succeeds, the State will have to take all steps to make available the loan sought by the petitioner, including making adequate budgetary allocations, if so required.

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Page 2 of 3 AUGUST 28, 2024

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Ashvini Narwade

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To enable the State to file its reply, we direct that the same shall be filed on or before 24^th September 2024 and a copy of the same shall be served on the Advocates for the Petitioners.

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Place the Above Writ Petition for ad-interim relief on 25^th September 2024.

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This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.

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[FIRDOSH P. POONIWALLA, J.]

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[B. P. COLABAWALLA, J.]

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Page 3 of 3 AUGUST 28, 2024

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Ashvini Narwade

Siddheshwar Sahakari Sakhar Karkhana Ltdthrought Its Managing Director v. State of Maharashtra and Anr.

Case brief

What is this about?

What did the court decide?

Siddheshwar Sahakari Sakhar Karkhana Ltdthrought Its Managing Director v. State of Maharashtra and Anr.

Case brief

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What did the court decide?

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