Judgment Jayant Patel, J.—Rule. Ms. Trusha Patel learned AGP waives service of notice of rule for the respondent authority. With the consent of the learned Counsel appearing for both the sides the matter is finally heard today. 2. The only aspect which arises for consideration is whether after interim order for liquidation is passed and opportunity is given for submission of the explanation, whether opportunity of hearing is required to be given by the District Registrar before passing final order of liquidation or not. 3. The short fact appears to be that the District Registrar, Junagadh had issued show-cause notice to the petitioner society before passing interim order of winding up. The society had submitted reply, however, the explanation submitted by the society was not accepted, and the interim order of winding up was passed by the District Registrar. The society also carried the matter before the Additional Registrar against the interim order of winding up. In the meantime on 18.03.2003 the District Registrar passed the final order of winding up, whereby the interim order has been confirmed, and the society is ordered to be wound up. Thereafter the petitioner carried the matter before Additional Registrar and the State Government but did not succeed, and it is under these circumstances the present petition. 4. Heard Mr. Desai learned Counsel for the petitioner, Ms. Trusha Patel learned AGP for the State Authority and Mr. Mangukiya learned Counsel is also heard for the applicant of Civil Application No. 11182 of 2006. 5. It appears that Section 107 of the Gujarat Cooperative Societies Act (hereinafter referred to as the “Act”) which is relevant for the purpose of this petition reads as under: “107. 1. Trusha Patel learned AGP for the State Authority and Mr. Mangukiya learned Counsel is also heard for the applicant of Civil Application No. 11182 of 2006. 5. It appears that Section 107 of the Gujarat Cooperative Societies Act (hereinafter referred to as the “Act”) which is relevant for the purpose of this petition reads as under: “107. 1. If the Registrar,— (a) after an inquiry has been held under Section 86, or an inspection has been made under Section 87, or on the report of the auditor auditing the accounts of the society, or (b) on receipt of an application made upon a resolution carried by three-fourths of the members of a society present at a special general meeting called for the purpose, or (c) of his own motion, in the case of a society which- (i) has not commenced working, or (ii) has ceased working, or (iii) possesses shares of members’ deposits not exceeding five hundred rupees, or (iv) has ceased to comply with any conditions as to registration and management in this Act or [the rules or the bye-laws, or] (v) has failed to comply with any directions issued under Sub-section (1) of Section 160 or such directions as modified under Sub-section (2) of that section. is of the opinion that a society ought to be wound up, he may make an interim order directing it to be would up. 2. Where an interim order is made on a ground specified in Clause (a) or Sub-section (iv) of Clause (c) of Sub-section (1) a copy thereof shall be communicated, in the prescribed manner, to the society calling upon it to submit its explanation to the Registrar within a month from the date of the issue of such order. 3. The Registrar, after giving an opportunity to the society of being heard, shall make a final order, vacating or confirming the interim order.” 6. On plain reading the aforesaid Sub-section (2) of Section 107 of the Act, it appears that when the interim order of liquidation is made, opportunity to submit the explanation to the Registrar within one month from the date of interim order of winding up is required to be given. The aforesaid requirement of Sub-section (2) of Section 107 of the Act appears to have been satisfied in the present case. However society has not submitted any explanation. It was the contention of Mr. The aforesaid requirement of Sub-section (2) of Section 107 of the Act appears to have been satisfied in the present case. However society has not submitted any explanation. It was the contention of Mr. Desai learned Counsel for the petitioner that as the matter was being agitated before the appellate authority against the interim order of winding up, and before the conclusion of the said proceedings, the final order of winding up came to be passed and therefore, the explanation could not be submitted. However, in his submission there are sufficient material to show that the society has made progress, and is functioning, which would not support last resort of liquidation. 7. In my view the said aspect are not required to be examined, more particularly in view of the order passed hereinafter. However, the facts remains that the opportunity for submitting explanation was given, and the same was not availed by the society. 8. It further appears that Sub-section (3) of Section 107 of the Act also provides for an opportunity of hearing to the society before passing the final order on the aspect of vacating or confirming of the interim order. The aforesaid Sub-section (3) of Section 107 of the Act is irrespective of the fact that there is explanation or not by the society. It is required for the Registrar to arrive at the satisfaction that the interim order of winding up be vacated or be confirmed, while arriving at such satisfaction, the opportunity of hearing is required to be given to the society unless the society has agreed for liquidation. It is an admitted position that no opportunity of hearing has been given to the society as per Sub-section (3) of Section 107 of the Act. Therefore, the impugned order passed by the District Registrar is without following mandatory procedure as required under Section 107(3) of the Act. 9. The learned AGP appearing for the State Authority contended that if there is no explanation by the society or the society has not availed opportunity of submitting explanation, the District Registrar may not be required to give opportunity of hearing and therefore, order cannot be said as illegal in the eye of law. 10. 9. The learned AGP appearing for the State Authority contended that if there is no explanation by the society or the society has not availed opportunity of submitting explanation, the District Registrar may not be required to give opportunity of hearing and therefore, order cannot be said as illegal in the eye of law. 10. In my view when Sub-section (3) of Section 107 of the Act, independently provides for hearing and is not dependent upon the explanation by the society as conceived Sub-section (2) of Section 107 of the Act. It cannot be said that if the society has not submitted any explanation, no opportunity of hearing is required to be given before passing the final order for vacating or confirming interim order. If such contention is accepted it would run counter to the scheme of Sub-sections (2) and (3) of Section 107 of the Act. [It is hardly required to be stated that liquidation is last resort and therefore, even if there is no explanation of the society submitted, it would be required for the District Registrar to consider the matter on the basis of the material available before him, and after giving opportunity of hearing to the society, the District Registrar has to record the satisfaction for vacating or confirming interim order.] Therefore, such contention of learned AGP cannot be accepted. 11. Further it appears that in the impugned order passed by the District Registrar no satisfaction whatsoever is recorded for vacating or confirming order, except mentioning that after interim order no explanation or reply submitted on behalf of the society, and therefore, final order of liquidation. Such can also be said as mechanical exercise of the power by the District Registrar without considering the ground/circumstances germen to the exercise of the power for finalising order of liquidation. 12. The aforesaid aspect which goes to the root of the matter are not considered by the Additional Registrar in appeal as well as by the State Government in Revisional Jurisdiction. Therefore, same also can be said as without proper application of mind. 13. In view of the above, the impugned order passed by the District Registrar for final order of liquidation of the petitioner society and its confirmation thereof by the Additional Registrar in appeal, and by the State Government in revision are quashed and set aside. Therefore, same also can be said as without proper application of mind. 13. In view of the above, the impugned order passed by the District Registrar for final order of liquidation of the petitioner society and its confirmation thereof by the Additional Registrar in appeal, and by the State Government in revision are quashed and set aside. As a consequence thereof the District Registrar will be required to give opportunity of hearing to the petitioner as required under Sub-section (3) of Section 107 of the Act, and shall be required to pass afresh order in accordance with law after giving opportunity of hearing to the petitioner society. 14. Petition is allowed to the aforesaid extent. Rule made absolute accordingly. No order as to costs. 15. In view of the order passed in the main Special Civil Application, the Civil Application would not survive, and shall stand disposed of accordingly.