Pandurang Ganpati Chaugule vs Vishwasrao Patil Murgud Sahakari Bank Ltd.

We have read and considered the order dated 30th July, 2015 referring the matters to a larger Bench in view of conflicting decisions in Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd. and others [(2007) 6 SCC 236] and the earlier pronouncements of this Court in Delhi Cloth and General Mills Co. Ltd. v. Union of India [(1983) 4 SCC 1666], T. Velayudhan v. Union of India [(1993) 2 SCC 582] and Union of India v. Delhi High Court Bar Association [(2002) 4 SCC 275].

The basis on which the decisions, referred to above, have been reached by the respective Benches relate to the scope of the legislative fields covered by Entry 45 of List I and Entry 32 of List II of the Seventh Schedule which question undoubtedly touches upon the issue in hand, namely, the applicability of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFASI Act) to Cooperative Societies/Banks. As the decisions in conflict are of coordinate Benches (three judges'' Bench) the reference, in our considered view, ought to have been made to a larger Bench. We, therefore, direct the Registry to place the papers before the Hon''ble the Chief Justice of India for being referred to a larger Bench.