Published On : Fri, Feb 12th, 2021

HC brings relief to workers; paves way to attach MSCB property

Nagpur: The Nagpur Bench of Bombay High
Court has rejected the petition filed by Maharashtra State Co-operative Bank (MSCB) against attachment of its property to pay dues of workers of Vainganga Sahakari Sakhar Karkhana to the tune of Rs 13.89 crore.

Refusing to extend the relief to MSCB any further, a division bench consisting of Justice Nitin Jamdar and Justice Anil Kilor allowed the District Collector to take possession of bank property and also to attach its account with Bank of Baroda.

The agitating workers pointed out that the
Apex Court had rejected Maharashtra State Co-operative Bank’s petition on December 4, 2019 with a direction to pay the dues of workers within six months or else directed attachment of property. They urged the High Court not to extend relief as the workers were agitating since last 13 years.

During last hearing on Monday, the High Court had granted partial relief to the petitioner bank against attachment by district administration but permitted the Tahsildar to take symbolic possession. The bank claimed that such action would adversely affect its functioning and sought stay to proposed attachment so as to pursue permissible legal remedies.

Ravindra Thakare, District Collector, had directed S D Patil, Tahsildar, and Sunil Salve, Naib Tahsildar, to attach the property of MSCB Ltd at Mahal as a con- sequence of default of Rs 13,89,84,334. The said amount was to be paid to workers of Vainganga Sahakari Sakhar Karkhana in Bhandara district.

The bank had challenged the order issued by Tahsildar, Nagpur, on February 6, 2021 where the property of the bank with furniture and fixtures was to be attached at 11 am on February 8 to recover the dues.

The High Court had observed that the order for attachment of property was a consequence of a litigation instituted by the workers and that the bank’s appeal was rejected by the Supreme Court of India.

Senior Adv S K Mishra and Adv Apurv De appeared for the petitioner-bank, Additional Government Pleader A M Deshpande appeared for Collector-Nagpur and others. Adv Rahul Zambre and Adv Santosh Chande represented the workers