AMBADA SEVA SAHAKARI SANSTHA, AMBADA, AMRAVATI THR. PRESIDENT, VISHWASRAO R. KHODASKAR v. SPECIAL RECOVERY OFFICER AND SALES OFFICER (CB), THE AMRAVATI DISTRICT CEN. CO-OP. BANK LTD. ORS
Discusses the principle of full disclosure and "clean hands" in writ jurisdiction, applicable across legal domains.
Court: Bombay High Court
Citation: 2025:BHC-NAG:7157
Decision Date: 09-07-2025
List of Laws
The Maharashtra Co-operative Societies Act, 1960; The Maharashtra Co-operative Societies Rules, 1961; Constitution of India, 1949; General Principles of Law
- The Maharashtra Co-operative Societies Act, 1960: The judgment discusses Section 98 of the Maharashtra Co-operative Societies Act, 1960 ("MCS Act, 1960"), noting that loan demand notices were served under this section on 10/06/2016. The judgment also mentions Section 103 (11) of the same Act, related to loan demand notices served on the petitioner. Further, Section 156(1) r/w r 107 was mentioned in the context of an order of the Divisional Joint Registrar, Cooperative Societies, Amravati dated 09.07.2020, authorizing the Officers therein to be the Special Recovery and Sales Officer. Notices dated 18.02.2021 for auction of Attached Properties on 20.03.2021 and a Public Notice dated 18.02.2021 in “Deshonnati” for auction of Attached Properties; on 20.03.2021 were also issued under Section 156(1) r/w r 107.
- The Maharashtra Co-operative Societies Rules, 1961: The judgment refers to Rule 107 (3) of the Maharashtra Co-operative Societies Rules, 1961 ("MCS Rules, 1961"), in the context of loan demand notices. Rule 107 (5) (b) of the Rules, 1961, is mentioned concerning the custodial receipt of attached property executed on 29/06/2016. A notice of attachment of property was also issued by taking recourse to Rule 107 (5) of the MCS Rules, 1961 on 29/06/2016. The judgment also mentions Rule 107 in conjunction with Section 156(1) of the Maharashtra Co-operative Societies Act, 1960, regarding the order of the Divisional Joint Registrar, Cooperative Societies, Amravati dated 09.07.2020, authorizing the Officers therein to be the Special Recovery and Sales Officer. Notices dated 18.02.2021 for auction of Attached Properties on 20.03.2021 and a Public Notice dated 18.02.2021 in “Deshonnati” for auction of Attached Properties; on 20.03.2021 were also issued under Section 156(1) r/w r 107.
- Constitution of India, 1949: The judgment refers to Article 226 of the Constitution of India, citing the Supreme Court's observations in K.D. Sharma Vs. Steel Authority of India Limited and others (2008) 12 SCC 481. It states that a party invoking the extraordinary jurisdiction of a High Court under Article 226 is supposed to be truthful, frank, and open, disclosing all material facts without reservation. The judgment emphasizes that the petitioner cannot play 'hide and seek' or 'pick and choose' the facts they like to disclose and suppress other facts.
- General Principles of Law: The judgment discusses the principle that a party who does not disclose complete facts, whether in their favor or against them, is disentitled to claim any relief. It emphasizes that a litigant must come to court with clean hands and disclose all material facts. The judgment cites K.D. Sharma Vs. Steel Authority of India Limited and others (2008) 12 SCC 481, highlighting that suppressing material facts or attempting to mislead the court can lead to the dismissal of the action. The court also notes that suppression or concealment of material facts is a jugglery, manipulation, maneuvering, or misrepresentation, which has no place in equitable and prerogative jurisdiction.
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