Bombay High Court
JALGAON DISTRICT CENTRAL CO OPERATIVE BANK LTD THR ITS MANAGER BHIKAN V WAGHversusBELGANGA SAHEKARI SAKHAR KARKHNA EMPLOYEES UNION THROUGH ITS GENERAL SECRETARY H B DESALE AND ORS
- Disposal
- DISPOSED OFF
Holding
The Court held that there was no error apparent on the face of the record warranting a review, and the interim order allowing the PF authorities to withdraw the amount stands.
Summary
The Bombay High Court reviewed an application filed by Jalgaon District Central Co-operative Bank seeking to set aside an interim order that allowed the Provident Fund (PF) authorities to withdraw Rs. 6.16 crore deposited by the bank in the court. The bank argued that the deposited amount represented shareholders' money, that the Union’s locus standi was doubtful, and that the interim order effectively acted as a final order despite pending adjudication of PF claims. Respondents, including the PF authorities and the auction purchaser of the sugar factory, contended that the PF has a first charge over the property and that the interim order merely facilitated the disbursement of funds to eligible employees. The Court examined the scope of review jurisdiction, referencing the Supreme Court’s guidelines on "error apparent on the face of the record" and held that no such error existed. Consequently, the Court dismissed the review application, directing that the interim order remain in force and the amount be disbursed to the employees, with any further questions to be resolved at the final hearing.
Issues considered
- Whether the interim order permitting withdrawal of the deposited amount by the PF authorities is subject to review on the ground of error apparent on the face of the record.
- Whether the bank’s deposited amount constitutes public money belonging to the PF authorities or shareholders’ funds.
- Whether the Union has locus standi to claim the PF amount.
- Whether the PF authorities have a first charge over the property in question.
Legislation cited
- Negotiable Instruments Act — s. 138
Subjects
- review jurisdiction
- interim order
- Provident Fund
- first charge
- co-operative bank
- auction sale
- section 138
- error apparent on the face of the record
- locus standi
Judgment
2026:BHC-AUG:45922-DB
1 RA 171-2026.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
REVIEW APPLICATION NO. 171 OF 2026
IN
WRIT PETITION NO. 333 OF 2017
AND
WRIT PETITION NO. 10437 OF 2021
Jalgaon District Central Co-operative
Bank Limited, Jalgaon,
Through its Manager,
Shri Bhikan Vasant Wagh,
Age : 55 years, Occu. : Service,
C/o. Jalgaon District Central Co-operative
Bank Limited, Jalgaon. .. Applicant
Versus
1. Belganga Sahakari Sakhar Karkhana,
Employees Union,
Through its General Secretary,
Shri Himmatrao s/o Bhikanrao Desale,
Age : 70 years,
Occu. : Retired Employee & Office Bearer,
R/o. Shivshakti Nagar, Bhadgaon Road,
Chalisgaon, Tq. Chalisgaon, Dist. Jalgaon.
Tq. Shiruranantapal, Dist. Latur.
2. The Union of India,
Through its Secretary,
Ministry of Labour.
3. The State of Maharashtra,
Through its Secretary,
Ministry of Co-operative and Sugar,
Mantralaya, Mumbai – 32.
4. The Assistant P. F. Commissioner,
Recovery Officer, SRO Nashik,
2 RA 171-2026.odt
Plot No. P-11, “Bhavishya Nidhi Bhavan”,
MIDC Satpur, Nashik – 422 007.
5. The Assistant Commissioner of Labour,
Office of Assistant Commissioner Labour,
Rajendra Bhavan, Vivekanand Nagar,
Zilla Peth, Jalgaon.
6. The Commissioner of Sugar,
Maharashtra State, Pune,
Shivajinagar, Pune -5.
7. The Liquidator,
Belganga Sahakari Sakhar Karkhana Ltd.,
Bhoras, Belganga Nagar, Tq. Chalisgaon,
Dist. Jalgaon. .. Respondents
Mr. V. D. Salunke, Advocate for the Applicant.
Mr. P. K. Lakhotiya, AGP for Respondents-State
Mr. A. R. Borulkar, Advocate for Respondent No. 2
Mr. N. K. Choudhari, Advocate for Respondent No. 4.
Mr. D. B. Thoke, Advocate for Respondent No. 8 in W.P.(Through
V.C.).
CORAM : KISHORE C. SANT AND
JITENDRA JAIN, JJ.
Date on which reserved for order : 07th September, 2026.
Date on which order pronounced : 01st October, 2026.
FINAL ORDER ( PER KISHORE C. SANT, J. ) :-
1. By way of this application, a review is sought of an interim
order passed by this Court dated 25.08.2026 in Writ Petition
No. 333/2017 and Writ Petition No. 10437/2021. By way of an
interim order this Court permitted to withdraw an amount of
3 RA 171-2026.odt
Rs. 6,16,89,365/- (Rs. Six Crore Sixteen Lakh Eighty Nine
Thousand Three Hundred Sixty Five only) alongwith accrued
interest. It was kept open for the individual members of the
petitioner union in Writ Petition No. 333/2017 to lodge their
claim for adjudication with the Provident Fund authorities and
adjudicate the same within six weeks from the date of receipt of
individual applications. It was further directed to the P. F.
authorities to disburse the amount to the eligible employees on
verifying their entitlement. The present applicant/respondent No.
7 bank in Writ Petition No. 333/2017 has filed this application
seeking review of the said order as the amount which is permitted
to be withdrawn from the office of this Court is the amount
deposited by the said bank in the office of this Court pursuant to
order passed by this Court.
2. Learned advocate Mr. Salunke for the applicant vehemently
argued that the amount deposited by the bank is the amount of
the shareholders. He further submits that, when the parties are
ready to argue the petition for final disposal there was no need to
pass such an interim order. The entitlement of the members of the
petitioner Union is yet to be determined. There is even a question
of locus standi of the Union which, according to him, it does not
4 RA 171-2026.odt
have. An order though appears to be interim order, however, it is
in the nature of final order. The petition is pending since 2017.
The pleadings are also completed. However, the Court without
hearing the matter for final disposal has passed the interim order
at such a stage. When the petition itself is fixed for final hearing
on 29.10.2026, an interim order is passed in hasty manner
without considering the merits of the petition.
3. His further submissions are that the issue about the liability
to pay the amount to the members of the petitioner society is yet
to be adjudicated. Even a dispute is pending between the bank
and added respondent No. 8 i.e. auction purchaser of the sugar
factory. The writ is not maintainable against the Co-operative
Society i.e. the present bank. This Court has already passed an
interim order in Writ Petition No. 2969/2016 i.e. filed by the bank
against the Provident Fund authorities. Pending the said petition,
no party has filed any proceedings for determining their rights. In
Civil Application No. 268/2017 in the said writ petition this Court
has allowed the bank to proceed with the auction sale. It is the
amount of the said sale proceeds which is deposited in this Court
of Rs. Eleven Crores only. Only to secure the interest of the parties
the amount was directed to be deposited in this Court. However,
5 RA 171-2026.odt
the said was not at any stretch of imagination can be said to be
deposited towards the P.F. contribution of the members of the
petitioner Union. In the earlier order this Court has clearly
observed that the claim of the P.F. authorities would be dealt with
after the decision in the appeal before the Appellate Tribunal. In
his submission, that adjudication is still pending. Though the said
appeal is dismissed now a writ petition is pending before Single
Judge. In the consent terms in Writ Petition No. 2969/2016,
respondent No. 8 has clearly accepted the liability to pay the
amount of P.F. It is thus for respondent No. 8 i.e. Ambaji Trading
Company to pay the P.F. dues. Now the auction purchaser has
stepped into the shoes of applicant bank and thus it is entirely for
the said respondent to pay the P.F. amount. He submits that all
these main questions are not dealt with by the Court while passing
the order. The error apparent on the face of record is clear in his
submission.
4. This application is vehemently opposed by the learned
advocate Mr. Choudhari for P.F. authorities and other respondents.
It is submitted by learned advocate Mr. Choudhari that the P.F.
authorities have the first charge over the property. This position is
accepted even by the bank. He submits that this Court considered
6 RA 171-2026.odt
the order passed in S.L.P. (C) No. 27740/2011 filed by very same
bank. In the said judgment, the Hon’ble Apex Court has clearly
held that the first charge over the property of the debtor is of the
P.F. authorities. This aspect is rightly considered by this Court
while passing the impugned order.
5. In any case, in his submission, the amount would be lying
idle in this Court till the decision of the writ petition. It is not in
the interest of any of the parties to keep the amount idle in this
Court. The only dispute is about the adjudication of the claims of
the members of the petitioner Union. For that, in his submission,
this Court has taken care by directing the authorities to consider
the claims on its own merits and only thereupon to disburse the
amount. He thus submits that, there is no error apparent on the
face of record.
6. He opposes this application on one more ground that the
order sought to be reviewed is only an interim order which is
always subject to final order that would be passed in the writ
petition and at that stage care can be taken of the interest of all
the parties. Presently as the employees are waiting since long to
get their amount rightly an order is passed. During the pendency
7 RA 171-2026.odt
of the proceeding some of the employees even died and at least
their heirs would get the amount. He submits that, no new ground
is raised. All the arguments are already considered in the
impugned order.
7. Learned advocate Mr. Thoke for the purchaser also
vehemently argued that the adjudication is still going on between
the creditor and the purchaser. There are dues of the workmen.
The fact that there are dues of the workmen was within the
knowledge of the bank. He also supports the order.
8. Learned A.G.P. for State and learned advocate Mr. Borulkar
for respondent No. 2 prays for passing appropriate order.
9. This Court has considered the arguments. An order passed is
only an interim order. The amount directed to be withdraw by the
P.F. authorities is lying in this Court since 2017. There is no dispute
that on the property the first charge is of the P.F. authorities. The
Hon’ble Apex Court in S.L.P. (C) No. 27740/2011 has also clearly
held that P.F. authorities have first charge over the property. Thus,
there is no dispute about the charge over the property of the P.F.
authorities. The dispute between the purchaser and the bank is
already going on in Writ Petition No. 2969/2016. The purchaser
8 RA 171-2026.odt
has already accepted the liability to pay the amount of P.F. out of
the purchase amount. Only the bank has deposited some amount
in the office of this Court. So far as remaining amount is
concerned, the proceeding between bank and the purchaser is
going on. It is also submitted during the course of argument that
the bank has already initiated proceeding under section 138 of the
Negotiable Instruments Act against the purchasers which is going
on in the Criminal Court. Thus, the bank is entitled to receive the
amount from the purchaser including the amount as per the
undertaking of the purchaser of P.F. dues. There is a charge in
favour of the bank on the property auctioned.
10. This petition is pending since 2017. Though this Court has
fixed the petition for hearing on 29.10.2026, it is common
knowledge that the Courts are not in a position to take up the
final hearing matters. Therefore, it was considered by this Court
that admittedly there are dues of P.F. authorities. So far as
entitlement of the employees of the Karkhana which is auctioned
there is no dispute. This Court has also taken care directing the
authorities to consider the claim of each individual workmen and
thereafter only to disburse the amount. The dues are in tune of Rs.
6,16,89,365/- (Rs. Six Crore Sixteen Lakh Eighty Nine Thousand
9 RA 171-2026.odt
Three Hundred Sixty Five only) and therefore, out of Rs. Eleven
Crore only that much amount is allowed to be withdrawn by the
P.F. authorities. This Court does not find that any prejudice is
caused to any of the parties by passing the orders. All these
submissions made in this application were also made when
impugned order is passed. Those submissions also requires
consideration at the stage of final hearing of the writ petitions.
11. This Court thus finds that, there is no error apparent on the
face of record as such. The submission that the bank’s money is
public money, there is no doubt about the said submission.
However, that money is lying idle in this Court is also equally a
fact. Presently, the amount is not of use to anyone. In that view it
is directed to be disbursed to the employees. The question of locus
standi of the Union is to be decided at the stage of final hearing.
This Court, as such, does not find any error apparent on the face
of record in the application. While passing final order care can be
taken about interest of the bank.
12. So far as power to review is concerned, the Hon’ble Apex
Court very recently delivered a judgment in the case of
Malleeswari Vs. K. Sugunand Another, AIR Online 2025 SC 827.
Paragraph Nos. 16 & 17 are reproduced from the judgment which
10 RA 171-2026.odt
read as under :
“16. To wit, through a review application, an apparent
error of fact or law is intimated to the court, but no extra
reasoning is undertaken to explain the said error. The
intimation of error at the first blush enables the court to
correct apparent errors instead of the higher court
correcting such errors. At both the above stages, detailed
reasoning is not warranted.
17. Having noticed the distinction between the power of
review and appellate power, we restate the power and
scope of review jurisdiction. Review grounds are summed
up as follows :
17.1 The ground of discovery of new and important matter
or evidence is a ground available if it is demonstrated that,
despite the exercise of due diligence, this evidence was not
within their knowledge or could not be produced by the
party at the time, the original decree or order was passed.
17.2 Mistake or error apparent on the face of the record
may be invoked if there is something more than a mere
error, and it must be the one which is manifest on the face
of the record. Such an error is a patent error and not a
mere wrong decision. An error which has to be established
by a long-drawn process of reasoning on points where
there may conceivably be two opinions can hardly be said
to be an error apparent on the face of the record.
17.3 Lastly, the phrase ‘for any other sufficient reason’
means a reason that is sufficient on grounds at least
analogous to those specified in the other two categories.”
13. Considering all above, this Court does not find that, a case is
made out to entertain this application. The review application
stands dismissed.
( JITENDRA JAIN, J.) ( KISHORE C. SANT, J. )
14. At this stage, learned advocate for the applicant seeks stay
11 RA 171-2026.odt
to the effect of this order.
15. At the request of learned advocate for the applicant, effect of
the order be stayed for three (03) weeks from today.
( JITENDRA JAIN, J.) ( KISHORE C. SANT, J. )
P.S.B.
Checking your session…