Gujarat High Court
Prabhudas Bhimjibhai Patel vs State Of Gujarat on 21 November, 2025
NEUTRAL CITATION
C/SCA/9583/2025 ORDER DATED: 21/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 9583 of 2025
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2025
In R/SPECIAL CIVIL APPLICATION NO. 9583 of 2025
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PRABHUDAS BHIMJIBHAI PATEL & ANR.
Versus
STATE OF GUJARAT & ORS.
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Appearance:
MR. MAULIK M SONI(7249) for the Petitioner(s) No. 1,2
MS HONEY M RAVAL(11856) for the Petitioner(s) No. 1,2
DR VENUGOPAL PATEL AGP for the Respondent(s) No. 1
MR DILIP B RANA(691) for the Respondent(s) No. 2
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CORAM:HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE
Date : 21/11/2025
ORAL ORDER
1. The present Special Civil Application has been filed praying for the following reliefs:-
"9A) Your Lordship be pleased to admit this petition;
B) Your Lordship be pleased to quash and set aside order dated 01.05.2025 passed in Revision Application No. DSREV 147 of 2023 passed by the Ld. Deputy Secretary (Appeal) Agricultural, Farmer, welfare Cooperation department. (Anvenure A Colly).
C) Your Lordship be pleased to pass interim order and by way interim relief be pleased to stay the further operation, implementation and execution of attachment proceeding initiated by the respondent No.3 against the petitioners or direct to maintain status quo in respect of property of the petitioners i.e. (1) A-12, Khodiyar Park, Near Navrang School, Odhav, Ahmedabad and (2) C-49, G.I.D.C Hosing society, Odhav, Ahmedabad till final disposal of this petition."
2. The factual matrix in the present case is that, the respondent No.4 herein borrowed a loan from the respondent No.2 Bank to which the petitioners herein are guarantors. Due to default in repayment of the loan, recovery proceedings came to Page 1 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025 NEUTRAL CITATION C/SCA/9583/2025 ORDER DATED: 21/11/2025 undefined be initiated by the respondent No.2 Bank for outstanding amount of Rs.21,92,034.75 ps. by filing Lavad Case No.3050 of 2002 before the Board of Nominees, Ahmedabad. By judgment and decree dated 02.09.2003, the learned Board of Nominees allowed the said suit. That thereafter the respondent No.2 Bank initiated proceedings under Section 159 of the Gujarat Cooperative Societies Act, 1962 ["Act, 1962" for short] for execution of the said decree. The petitioners came to be issued notice in the year 2008. Thereafter again reminder notice was sent in the year 2012 and once again a demand notice was issued to the petitioners in the year 2014-2015. That in the year 2023, an attachment notice was issued in respect of the property of the petitioners under Rule 96 of the Gujarat Cooperative Societies Rules ["Rules" for short]. The said notice came to be challenged by the petitioners before the respondent No.1 being Revision Application No.DSREV 147 of 2023 which came to be dismissed by the impugned order dated 01.05.2025 by the Dy. Secretary (Appeals), Agriculture, Farmer Welfare & Cooperation Department.
Aggrieved, the present Special Civil Application has been preferred by the petitioners.
3. Mr. Maulik M. Soni, learned advocate for the petitioners submits that the attachment notice is illegal and arbitrary. He submits that there is no property in the name of the petitioner No.1 and the property attached in execution of the decree is the property belonging to the son of the petitioner who has nothing to do with the said transaction. He submits that the respondent No.3 has misused his powers under the provisions of law and without following due process, has issued the attachment notice Page 2 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025 NEUTRAL CITATION C/SCA/9583/2025 ORDER DATED: 21/11/2025 undefined dated 12.06.2023 under the Rules and Act, 1962. He submits that till date, the judgment and decree dated 02.09.2003 passed against the petitioners in Lavad Case No.3050 of 2002 has never been communicated to the petitioners. He submits that the respondent Nos.2 and 3 ought to have initiated recovery from the property of the principal borrower or his relatives in the present recovery proceedings, but due to collusion, they have not attached the properties of the respondent No.4 and instead, attached the subject properties of the petitioners. He submits that the summons and notices have not been served properly and there was no opportunity of hearing given before the attachment notice was issued in the recovery proceedings. He submits that the respondent No.2 Bank had not followed proper procedure while granting the loan to the respondent No.4. He submits that the Revisional Authority has not appreciated that the respondent No.2 Bank had taken the possession of the goods, machinery and property of the respondent No.4 in satisfaction towards its claim. However, the respondent No.2 Bank has not sold such goods, machinery and property and recovered the outstanding amount dues. He submits that the respondent No.2 Bank has not taken any steps since the passing of the judgment and decree dated 02.09.2003 and therefore, the recovery notice under the said order is liable to be cancelled. He submits that the petitioners being guarantors, proceedings against them can be initiated only after the sale of the mortgaged properties of the respondent No.4 which is not completed in the present case. He, therefore, submits that the impugned order be quashed and set aside.
4. Dr. Venugopal Patel, learned Assistant Government Pleader Page 3 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025 NEUTRAL CITATION C/SCA/9583/2025 ORDER DATED: 21/11/2025 undefined has supported the order passed by the Dy. Secretary (Appeals). He submits that the appellate authority has properly appreciated the facts in the present case. The petitioners have not come to the Court with clean hands and have not disclosed the material facts. He submits that the respondent No.2 is a Cooperative Bank and is executing the judgment and decree in its favour. He submits that the petitioners are only trying to avoid their liability by challenging the attachment notice. He submits that the petitioners being guarantors to the loan are liable for repayment of the loan along with the interest and therefore, the respondent Nos.2 and 3 have rightly initiated the proceedings against the petitioners herein. He submits that the present Special Civil Application be dismissed.
5. Heard learned counsels for the parties, perused the documents and considered the submissions.
6. The main contention of the learned advocate for the petitioners is that the judgment and decree dated 02.09.2003 in Lavad Case No.3050 of 2002 passed by the Board of Nominees, Ahmedabad was never served upon the petitioners till date and nor such order has been communicated by the learned Court under Rule 41(4) of the Rules. By the impugned order, the appellate authority has recorded on the basis of the records before it that after the first notice came to be issued to the petitioners in the year 2008, the petitioners had personally come to the respondent No.2 Bank and given an application to the Recovery Officer stating that they have not been served with the copy of the judgment and decree dated 02.09.2003 passed by the Board of Nominees, Ahmedabad and a copy of the same be Page 4 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025 NEUTRAL CITATION C/SCA/9583/2025 ORDER DATED: 21/11/2025 undefined provided to them. It is further stated in the said application that as informed to them about One Time Settlement Scheme, they may be intimated about the amount to be deposited and they have further stated in the said application that such One Time Settlement process may be initiated. It has further come on record that thereafter, the respondent No.2 Bank had also intimated to the petitioners about the amount which was to be paid by them towards One Time Settlement in terms of the Settlement Scheme. However, the petitioners have neither repaid the amount nor deposited the amount as per the One Time Settlement Scheme. In the present petition also all these facts have been suppressed by the petitioners. The appellate authority has further recorded that the documents before it reveal that though repeated notices were given to the petitioners at their addresses, the same were returned back with endorsement "Noticee Left" and the said notices have been returned back to the respondent Nos.2 and 3. All these facts could not be controverted by the learned advocate for the petitioners. It appears that the petitioners have been given ample opportunity to repay the outstanding amount of dues. They have also availed the process of One Time Settlement Scheme. However, they have failed to deposit the said amount under the One Time Settlement Scheme also. The petitioners have initiated revision proceedings only after the notice of attachment came to be issued in respect of their property. The appellate authority has properly appreciated the documents on record as well as the conduct of the petitioners in trying to avoid their liability. The findings by the appellate authority are based on records maintained by the respondent No.2 Bank.
No interference is called for. The impugned order is just Page 5 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025 NEUTRAL CITATION C/SCA/9583/2025 ORDER DATED: 21/11/2025 undefined and proper.
The present Special Civil Application is devoid of merits and is, accordingly, dismissed. No order as to costs.
In view of disposal of main Special Civil Application, Civil Application No.1 of 2025 for stay does not survive. The Civil Application also accordingly stands disposed of.
(ANIRUDDHA P. MAYEE, J.) KAUSHIK D. CHAUHAN Page 6 of 6 Uploaded by KAUSHIK D. CHAUHAN(HC00197) on Wed Nov 26 2025 Downloaded on : Wed Nov 26 20:57:18 IST 2025