JUDGMENT : Bhargav D. Karia, J. Heard learned advocate Mr. Baiju Joshi for the petitioners and learned Assistant Government Pleader Mr. Dhawan Jayswal for the respondent Nos. 1 to 3. 1. Pursuant to the order dated 3rd February, 2022, learned Assistant Government Pleader Mr. Jayswal has tendered the further affidavit on behalf of the respondent Nos. 1 to 3 in compliance of the order dated 05.01.2022. 2. On perusal of the further affidavit filed today, it appears that the respondent-authorities are not able to understand the gravity of the situation with regard to the pending liquidation of the Co-operative Banks in the State of Gujarat. Except giving the statistics of the outstanding secured and unsecured accounts and the amount to be recovered, no action plan is prepared and submitted in the affidavit. 3. In view of the above situation, this Court is not inclined to pursue the matter further. Let the people of Gujarat be left at the mercy of the officers of the respondent-Departments for their outstanding amount to be paid or recovered by the Banks which are taken into liquidation. 4. So far as the facts of the present case is concerned, the following prayers are made by the petitioners: "(A) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up proceedings of the respondent No. 4 bank and settle the accounts and pay the amount outstanding to the petitioners under Section 110 of the Act. (B) This Hon'ble Court be pleased to issue a mandamus and/or writ of writ of certiorari or any other appropriate writ, order or direction, directing the respondent Nos. 11 to 3 to remove the liquidator and thereafter, appoint a committee of liquidator from and amongst the present petitioners so as to expedite the liquidation proceedings of respondent No. 4 bank. (C) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up and/or liquidation proceedings of respondent No. 4 bank within time bound period in consonance with the Act and the Rules. (C) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up and/or liquidation proceedings of respondent No. 4 bank within time bound period in consonance with the Act and the Rules. (D) During the pendency hearing and final disposal of this, petition, this Hon'ble Court be pleased to change the liquidator of the respondent No. 4 bank and further the status report of the liquidation proceedings, the periodical reports as well as the action plan for further proceeding may be directed to be submitted before this Hon'ble Court. (E) Any other and further reliefs as deemed just and proper looking to the facts of this case, may kindly be granted in favour of the petitioner, in the interest of justice." 5. Learned advocate Mr. Joshi submitted that the respondent-Liquidator has not taken any action which is reflected from the chart produced along with the further affidavit filed today where the name of the respondent No. 4-Bank appears at Serial No. 38 and it is reflected that there are 3,356 accounts from which the recovery of Rs. 954.96 Lakh is to be done. However, no further details are provided in the affidavit or further affidavits which are filed from time to time with regard to the efforts made by the Liquidator of the respondent No. 4-Bank for recovery of the outstanding dues. 6. It also appears that the respondent-authorities including the Liquidator are not bothered or aware about the provisions of the Gujarat Co-operative Societies Act, 1961 (for short 'the Act, 1961'), more particularly, Section 107 to Section 115 of Chapter X which provides for liquidation. 7. It appears that the Liquidators appointed by the State of Gujarat for the Banks which are taken into liquidation are not properly educated with regard to the powers vested in them under Section 110 of the Act, 1961. Section 110 of the Act, 1961 reads as under: "110. 7. It appears that the Liquidators appointed by the State of Gujarat for the Banks which are taken into liquidation are not properly educated with regard to the powers vested in them under Section 110 of the Act, 1961. Section 110 of the Act, 1961 reads as under: "110. The Liquidator appointed under section 108 shall have power, subject to the rules and the general supervision, control and direction of the Registrar,-- (a) to institute and defend suits and other legal proceedings, civil or criminal, on behalf of the society, in the name of his office; (b) to carry on the business of the society, so far as may be necessary for the beneficial winding up, of the same; (c) to sell the immovable and movable property and actionable claims of the society by public auction or private contract, with power to transfer the whole or part thereof to any person or body corporate, or sell the same in parcels; (d) to raise, on the security of the assets of the society, any money required; (e) to investigate all claims against the society and, subject to the provisions of the Act, to decide questions of priority arising out of such claims and to pay any class or classes of creditors in full or ratably according to the amount of such debts, the surplus being applied in payment of interest from the date of liquidation at a rate approved by the Registrar, but not exceeding the contract rates; (f) to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present of future, whereby the society may be rendered liable; (g) to compromise all calls or liabilities to call and debts and liabilities capable of resulting in debts, and call claims present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability to the society, and all questions in any way relating to or affecting the assets or the winding up of the society, on such terms as may be agreed, and take any security for the discharge of any such call, liability, debt, or claim, and give a complete discharge in respect thereof; (h) to determine, from time to time, after giving an opportunity to answer the claim, the contribution to be made or remaining or be made by the members or past members or by the estate, nominees, heirs or legal representatives of deceased members, or by any officer, past officer or the estate or nominees, heirs, or legal representatives of a deceased officer to the assets of the society, such contribution being inclusive of debts due form such members or officer; (i) to make applications under section 103; (j) to get disputes referred to the Registrar for decision by himself of his nominee or board of nominees; (k) to determine by what persons and in what proportion the costs of the liquidation shall be borne; (l) to fix the time or times within which the creditors shall prove their debts and claims or be included for the benefits of any distribution made before those debts or claims are proved; (m) to summon and enforce the attendance of witness and to compel the production of any books, accounts, documents, securities, cash or other properties belonging to or in custody of the society by the same means and in the same manner as provided in the case of a Civil Court under Code of Civil Procedure, 1908; (n) to do all acts, and to execute in the name and on behalf of the society, all deeds, receipts and other documents, as may be necessary to such winding up; (o) to take such action as may be necessary under section 19, with the prior approval of the Registrar, if there is reason to believe that the society can be reconstructed." 8. Moreover, the functions and duties of the Liquidators are prescribed under Rule 48 of the Gujarat Co-operative Societies Rules, 1965 (for short 'the Rules, 1965') which reads as under: "48. Functions and duties of Liquidator. (1) After the receipt of the final order from the Registrar confirming the interim order, the liquidator shall publish by such means as he may think proper a notice requiring all claims against the society to be notified to him within two months of the publication of the notice. [(1.A) The liquidator shall, within thirty days after the receipt of the final order referred to in sub-rule (1), give notice of his appointment of such and of the claim, if any, of the State Government against the society to the concerned department of the State Government and if, the society is a dealer within the meaning of the term as defined in the Bombay Sales Tax Act, 1959, the notice of his appointment as such Shall be given to the Commissioner of Sales Tax also within the said period as aforesaid] (2) The liquidator shall make separate orders against various members, past Members and others, noting the amount to be realised from each as a contribution Under clause (h) of Section 110 and as cost of liquidation under clause (k) of the said Section, These orders shall be submitted for approval to the Registrar, who may modify them or refer them back to the liquidator for further inquiry or other action or may forward them for execution under Section 103 of the Act. (3) If the sum assessed against any member is not recovered, the liquidator may frame subsidiary orders against any other member to the extent of the liability of each for the debts of the society, until the whole amount due from members is recovered, and these orders shall be dealt in the same way as orders under sub-rule (2). (4) The liquidator shall submit a quarterly progress report to the Registrar in such form as the Registrar may require. (5) All funds incharge of the Liquidator shall be deposited in the Post off ice Saving Bank or in a Central Co-operative Bank or in the State Bank of India or any other bank appointed for the purpose by the Registrar and shall stand in his name. (5) All funds incharge of the Liquidator shall be deposited in the Post off ice Saving Bank or in a Central Co-operative Bank or in the State Bank of India or any other bank appointed for the purpose by the Registrar and shall stand in his name. (6) At the conclusion of the liquidation procedure, a general meeting of the members of the society shall be called at which the liquidator shall summaries his proceedings, point out the causes of the failure of the society, and report what sum, if any, remains in the possession after meeting all the liabilities of the society as determined by him." 9. On perusal of the above provisions of Section 110 of the Act, 1961 with Rule 48 of the Rules, 1965, the Liquidator of any Co-operative Society (in liquidation) has wide powers to recover the dues of the Co-operative Society (in liquidation). 10. On the basis of the powers which are to be exercised, more particularly, under Section 110(h) and 110(m) of the Act, 1961 the Registrar is required to issue a certificate under Section 103 of the Act, 1961, which reads as under: "103. Every order passed by the Registrar or a person authorized by him under section 93, or by the Registrar, his nominee or board of nominees under section 100 or 101, every order passed in appeal under section 102, every order passed by a Liquidator under section 110, every order passed by the Government in appeal against orders passed under section 110, and every order passed in revision under section 155, shall, if not carried out,-- (a) on a certificate signed by the Registrar or a Liquidator, be deemed to be a decree of a Civil Court, as defined in clause (2) of section 2 of the Code of Civil Procedure, 1908 and shall, be executed in the same manner as a decree of such Court, or (b) be executed according to the provisions of the Land Revenue Code and the rules there under for the rime being in force for the recovery of arrears of land revenue: Provided that, any application for the recovery in such manner of any such sum shall be made to the Collector, and shall be accompanied by a certificate signed by the Registrar, or by any Assistant Registrar to whom the said power has been delegated by the Registrar. Such Application shall be made within twelve years form the date fixed in the order and if no such date is fixed, from the date of the order." 11. Thus, as per the certificate to be issued as per the order to be passed by the Liquidator under Section 110 of the Act, 1961 by the Registrar, the outstanding dues as per the Recovery Certificate can be recovered as provided under Section 103 of the Act, 1961. In addition to the above powers, the Registrar can recover the outstanding amount by attachment or sale of the property under Section 159 of the Act, 1961, which reads as under: 159. (1) the Registrar or any officer subordinate to him and empowered by him in this behalf may, subject to such rules as may be made by the State Government by or under this Act, recover-- (a) any amount due under a decree or order of a Civil Court obtained by a society, (b) any amount due a decision, award or order of the Registrar, his nominee or the board nominees or Liquidator or Tribunal, (c) any sum awarded by way of costs under this Act, (d) any sum ordered to be paid under this Act as a contribution to the assets of the society, Recovery of sums due to Government. Competency of a member to transfer land or interest therein to society together with interest, if any, due in such amount or sum and the costs of recovering the same by the attachment and sale or by sale without attachment of the property of the person against whom such decree, decision, award or order has been obtained or passed. (2) the Registrar or the officer empowered by him shall be deemed when exercising the powers under subsection (1) or when passing any order on any application made to him for such recovery, to be Civil Court for the purposes of article 182 in the First Schedule to the Indian Limitation Act, 1908. 12. Thus, the respondents are given ample power to make recoveries on sale of the assets of the Co-operative Society/Bank (in liquidation). In such circumstances, the averments made in the further affidavit filed today on behalf of the respondent Nos. 1 to 3 in compliance of the order dated 05.01.2022 is required to be considered. The averments made in the further affidavit filed today reads as under: "5. In such circumstances, the averments made in the further affidavit filed today on behalf of the respondent Nos. 1 to 3 in compliance of the order dated 05.01.2022 is required to be considered. The averments made in the further affidavit filed today reads as under: "5. As per the Annexure-R1, as on 31st January 2022, Among the outstanding accounts, number of secured accounts are 3902 while unsecured accounts are 23626. 6. To recover the outstanding of 3902 secured accounts, the liquidators has filed 602 recovery cases, issued one or more number of notices in 3947 accounts and registered the mortgage against the property available in 1767 accounts. 7. To recover the outstanding of 23626 unsecured accounts, the liquidators has filed 2914 recovery cases, issued one or more number of notices in 21364 accounts and registered the mortgage against the property available in 496 accounts. 8. Out of the total principal amount of Rs. 220699.89 lacs, the remaining amount to be recovered is Rs. 102117.30 lacs. Among which, Rs. 64271.37 lacs (around 63% of total remaining outstanding) are involved in 607 criminal cases. Thus, we have instructed to the liquidators to expedite the possibilities to get order in favor of the liquidator bank and to take follow up of the same regularly. Other 25% amount (approx.) are to be recovered from small and unsecured accounts which are untraceable or having incomplete loan documents. Though we have instructed to contact the loanee/guarantor on one to one basis and to recover the outstanding. 9. I say and submit that the proposal to extend the one-time settlement ("OTS") scheme had been approved which was earlier floated in respect of certain Cooperative Banks for the period up to 31.12.2021 and the OTS scheme is extended up to 31.12.2022." 13. On perusal of the above averments made on behalf of the respondent Nos. 1 to 3, this Court is not able to understand as to how the pendency of criminal cases has to do anything with regard to the recovery of the outstanding dues of the Bank (in liquidation) in view of the above provisions of the Act, 1961 which are reproduced for the benefit of the respondents. It appears that the respondents are not aware about their powers vested in them by the Act, 1961 to recover the dues of the Society/Bank (in liquidation). 14. The respondent Nos. It appears that the respondents are not aware about their powers vested in them by the Act, 1961 to recover the dues of the Society/Bank (in liquidation). 14. The respondent Nos. 1 to 3 are therefore, directed to complete the liquidation proceedings of the respondent No. 4-Society within a period of six months from the date of receipt of this order and submit a detail action taken and compliance report before this Court and complete the liquidation proceedings at the earliest. 15. With the aforesaid directions, the petition is allowed in terms of paragraph Nos. 15(A) and 15(C) which reads as under: "(A) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up proceedings of the respondent No. 4 bank and settle the accounts and pay the amount outstanding to the petitioners under Section 110 of the Act. (C) This Hon'ble Court be pleased to issue a writ of mandamus and/or writ of certiorari or any other appropriate writ, order or direction, directing the respondents to complete the winding up and/or liquidation proceedings of respondent No. 4 bank within time bound period in consonance with the Act and the Rules."