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High CourtsSingle Bench(2020) 09 SHI CK 0012

M/s Organic Valley vs Kangra Central Co¬operative Bank Limited And Another

High Court Of Himachal Pradesh · Decided on 2 September 2020

HON’BLE JUDGES
Ajay Mohan Goel, J
RESULT
Disposed Of
CASE NUMBER
Civil Writ Petition No. 2155 Of 2019

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Judgment

10 paragraphs · 347 words

Ajay Mohan Goel, J

1.

By way of this writ petition, the petitioner has prayed for the following reliefs:

"(a) To call for the record of the case pertaining to the sanction of loan and after examining the legality and propriety of the documents, to direct the respondents to comply with the terms of Annexures P­1 & P­5 in letter and spirit.

(b) To direct the respondents to disburse the term loan against the primary security and in case the collateral security is also found to be equivalent and more than the working capital to also disburse the balance of the working capital.

(c) Or in the alternative without prejudice to the rights of the petitioner to relegate the parties to arbitration in accordance with the provisions of H.P. Co­operative Societies Act to be decided within a time bound period by the Arbitrator.

(d) To direct the respondents to disburse such amount sufficient to ensure that the petitioner unit does not stop production and is able to discharge its financial obligations."

2.

As there is an objection raised with regard to the maintainability of the petition, learned Senior Counsel for the petitioner by referring to the stand of the respondents in the reply, submits that it will be in the interest of justice in case in terms of the stand of the respondents itself, the parties are relegated to Arbitration in terms of the provisions of Section 72 of the Himachal Pradesh State Co­operative Societies Act, 1968. Ordered accordingly.

3.

Leaned Senior Counsel for the petitioner submits that the Arbitration Petition shall be filed before the Registrar, Co­operative Societies within one week from today, with an advance copy of the same to learned counsel for the respondent­Bank. In the event of the petitioner approaching the Registrar, Co­operative Societies for adjudication by way of Arbitration and the issue raised being arbitral, this Court expects that the same shall be decided by the Registrar, Co­operative Societies on or before 30th November, 2020.

The petition stands disposed of in above terms, so also pending miscellaneous applications, if any.

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