[Cites 2, Cited by 0]
Bombay High Court
Abhyudaya Co-Operative Bank Ltd, ... vs Shri. Milind Nilkanth Deshmukh And Ors on 27 January, 2026
Author: Amit Borkar
Bench: Amit Borkar
2026:BHC-AS:3861
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Shabnoor
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.4892 OF 2014
Digitally
signed by
SHABNOOR
SHABNOOR AYUB
Abhyudaya Cooperative Bank Ltd.
AYUB PATHAN
PATHAN Date: Through Senior Manager
2026.01.27
19:23:31
+0530 (Legal & Recovery) ... Petitioner
V/s.
Milind Nilkanth Deshmukh & Ors. ... Respondents
WITH
WRIT PETITION NO.4893 OF 2014
Abhyudaya Cooperative Bank Ltd.
Through Senior Manager
(Legal & Recovery) ... Petitioner
V/s.
Milind Nilkanth Deshmukh & Ors. ... Respondents
WITH
WRIT PETITION NO.4319 OF 2014
Abhyudaya Cooperative Bank Ltd.
Through Senior Manager
(Legal & Recovery) ... Petitioner
V/s.
Milind Nilkanth Deshmukh & Ors. ... Respondents
Mr. Madhur Rai a/w Yogesh Mishra, Mr. Durgesh
Telang i/b PRS Legal, for the Petitioner.
Mr. Anil Anturkar, Sr. Advocate i/b Mr. Rushikesh C.
Barge, for Respondent No.2.
Mr. O. A. Chandurkar, Addl. GP, for State - Respondent
Nos. 5 & 6 in WP/4892/2014.
Ms. Mamta S. Srivastava, AGP, for State - Respondent
Nos. 5 & 6 in WP/4893/2014.
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Ms. Savina R. Crasto, AGP, for State - Respondent Nos.
5 & 6 in WP/4319/2014.
CORAM : AMIT BORKAR, J.
DATED : JANUARY 27, 2026
P.C.:
1. These petitions raise the same legal issues and facts. The
parties are also common in substance. For that reason, it is proper
to decide them together. Therefore, all petitions are taken up
together and disposed of by a common order.
2. Respondent No.6 has passed the impugned judgment and
order. By that decision, respondent No.6 allowed the revision
applications filed by respondent Nos.2 and 3. In doing so,
respondent No.6 set aside the certificates issued by respondent
No.5 under Section 101 of the MCS Act. These certificates
represent enforceable dues under the statutory scheme of the Act.
3. On facts, it is not in dispute that respondent Nos.2 and 3 did
not deposit the mandatory pre deposit as required by Section
154(2A) of the MCS Act. This provision requires the revision
applicant to deposit fifty percent of the recoverable amount before
the revision is entertained. The object of Section 154(2A) is to
protect the financial interest of the cooperative credit institution
and to ensure bona fides of the revision applicant. The Revisional
Authority cannot bypass this condition. If there is no deposit, the
revision cannot be heard on merits. Despite this clear mandate, the
Revisional Authority examined the revision applications on merits
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and set aside the certificates. This was legally untenable. The
impugned orders cannot stand. The certificates under Section 101
cannot be unsettled in breach of a statutory condition attached to
the right of revision.
4. Having regard to the above, the following order is required.
ORDER
(i) The judgment and order dated 17 July 2006 passed by
respondent No.6 in Revision Application Nos.405, 406, and
407 of 2002 are quashed and set aside.
(ii) Respondent Nos.2 and 3 are permitted to deposit an
amount of Rs.45 lakh with the Registrar, Appellate Side,
Mumbai within one week from today. This will constitute
part compliance of fifty percent of the recoverable dues
under Section 154(2A) of the MCS Act.
(iii) Respondent Nos.2 and 3 shall deposit the balance
amount necessary to complete fifty percent of the
recoverable dues as of today. This shall be done within two
weeks from today.
(iv) The petitioner bank has stated that the total combined
dues in all three petitions as of today are Rs.158.99 lakh.
According to bank the total dues are Rs.24.77 lakh in Writ
Petition No.4391 of 2017. The total dues are Rs.67.78 lakh
in Writ Petition No.4892 of 2014. The total dues are
Rs.66.44 lakh in Writ Petition No.4893 of 2014. After
crediting Rs.45 lakh, the respondents shall deposit the
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balance amount required to constitute fifty percent of the
recoverable dues as on 27 January 2026 within two weeks. If
the respondents fail to deposit the balance amount within
this time, the certificates shall attain finality.
(v) If respondent Nos.2 and 3 deposit fifty percent of the
recoverable dues in accordance with Section 154(2A) of the
MCS Act, the Revisional Authority shall decide the revision
applications on merits in accordance with law.
5. With these directions, all writ petitions stand disposed.
6. There will be no order as to costs.
(AMIT BORKAR, J.)
