Liquidator/State Government while deciding the claim under the provisions of Maharashtra Co-operative Societies Act, 1960 could not have taken into consideration the provisions of the SARFAESI Act, 2002 as they do not have any jurisdiction to do the same – The Maharashtra State Co-operative Bank Ltd. Vs. The Hon’ble Cabinet Minister For Co-operation, Marketing and Textile Department – Bombay High Court
In this case, Petitioner-Bank challenges the order passed by State Government rejecting its claim for interest during period of liquidation of the society. It also challenges the order passed by the Assistant Commissioner of Labour sanctioning the amount of wages to 322 workers of the society. Both parties claim priority to receive the amount available with the official assignee.
The Hon’ble High Court held that having invoked the remedy under Maharashtra Co-operative Societies Act, 1960 it would not be open to it to simultaneously buttress his claim under the Securitisation Act, 2002. There is a separate remedy created under the Securitisation Act for determining claims arising out of that Act. Admittedly, the petitioner has not availed of the remedy under the Securitisation Act. Having taken recourse to the remedy under the Act of 1960 the petitioner cannot rely upon the provisions of the Securitisation Act. The liquidator or the State Government while deciding the claim of the petitioner under the provisions of Act of 1960 and the Rules of 1961 could not have taken into consideration the provisions of the Securitisation Act as they do not have any jurisdiction to do the same.