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Bombay High Court

PRAKASH PARASAD TORDE AND OTHERSversusTHE SHAHADA PEOPLES CO OPERATIVE BANK LTD

Disposal
DISPOSED OFF

Holding

The condition of depositing 50% of the decretal amount is invalid; the orders imposing it are quashed and the ex‑parte judgment is set aside without any deposit condition.

Summary

The petitioner challenged a condition imposed by the Jalgaon Cooperative Court that required a 50% deposit of the decretal amount as a prerequisite for setting aside an ex‑parte award dated 16‑01‑2014 in Dispute No. 10 of 2010. The condition was upheld by the Cooperative Court and the Maharashtra State Cooperative Appellate Court, which dismissed the petitioner's revision. Relying on two earlier writ judgments (Nos. 13648/2019 and 13649/2019) that had struck down similar deposit conditions, the High Court held that such a condition is impermissible when the court merely restores the dispute for adjudication. Consequently, the High Court quashed both the 27‑08‑2019 order of the Cooperative Court and the 23‑10‑2019 order of the Appellate Court, set aside the ex‑parte award without any deposit condition, and directed the Cooperative Court to decide the dispute within six months. The amount deposited by the petitioner in the High Court, with interest, was to be remitted to the Cooperative Court.

Issues considered

  • When can a cooperative court impose a condition of depositing a percentage of the decretal amount as a prerequisite for setting aside an ex‑parte judgment?
  • Whether the condition of depositing 50% of the amount is legally valid and enforceable.
  • Whether the orders imposing such a condition should be quashed and the ex‑parte award set aside without condition.

Subjects

  • ex‑parte judgment
  • cooperative court
  • condition of deposit
  • revision
  • writ petition
  • quash
  • set aside
  • procedural fairness
  • Cooperative Societies Act

Judgment

2026:BHC-AUG:45504

                      IN THE JUDICATURE OF HIGH COURT AT BOMBAY
                                 BENCH AT AURANGABAD

                          38 WRIT PETITION NO. 13571 OF 2019

                              Prakash Parasad Torde And Others
                                            VERSUS
                         The Shahada Peoples Co Operative Bank Ltd
                                               ...
                      Advocate for the Petitioner : Mr. Salunke Pradeep B.
                         Advocate for Respondent : Mr. Savale Amit S.
                                               ...

                                CORAM      : ROHIT W. JOSHI, J.
                                Dated      : September 29, 2026

           PER COURT :-

           1.    Ex-parte judgment and award dated 16/01/2014 , passed by the

           learned Cooperative Court, Jalgaon, in Dispute No. 10 of 2010, was set

           aside by judgment and order dated 27/08/2019, passed by the learned

           Judge, Cooperative Court, Jalgaon, in Miscellaneous Application No.

           03/2018.


           2.    The learned Cooperative Court restored the dispute to its original

           file by setting aside the ex-parte judgment and award, by imposing a

           condition upon the present petitioner/respondent to deposit 50% of the

           amount as awarded by the learned Cooperative Court by the aforesaid

           judgment.


           3.    The petitioner filed Revision No. 56 of 2019 before the learned

           Maharashtra State Cooperative Appellate Court, Aurangabad Bench,

           Aurangabad, challenging the condition directing the deposit of 50% of

           the amount. The said revision came to be dismissed by judgment and


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                                                          38 WP 13571-2019



order dated 23/10/2019.       The order passed by the learned

Cooperative Appellate Court and the order passed by the learned

Cooperative Court, to the extent of direction for deposit of 50% of

the amount as a condition for setting aside the ex-parte judgment

and award, are challenged in the present petition.


4.   The learned Advocate for the petitioner states that there were

three similar matters filed against respondent No.1 – The Shahada

People's Cooperative Bank Limited, in which similar orders were

passed. The learned Advocate contends that by judgment dated

16/02/2026 passed in Writ Petition Nos. 13648 of 2019 and 13649 of

2019, this Court has set aside the condition of deposit of 50% of the

amount as imposed by the learned Cooperative Court.


5.   Perusal of the judgment dated 16/02/2026 demonstrates that

this Court has held that when the learned Cooperative Court had

found that the ex-parte award was required to be set aside by

granting an opportunity to the petitioner to contest the dispute, the

condition of deposit should not have been imposed.


6.   In view of the reasons recorded in the judgment dated

16/02/2026 delivered in Writ Petition Nos. 13648 of 2019 and 13649

of 2019, the present petition will have to be allowed by setting aside

the condition of deposit of 50% of the decretal amount as imposed

by the learned Cooperative Court, which is confirmed by the learned


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                                                               38 WP 13571-2019



Cooperative Appellate Court.


7.       Hence, the following order :

         (a)   The order dated 27/08/2019 passed by the learned
         Judge, Cooperative Court, Jalgaon, in Miscellaneous Application
         No. 03/2018, to the extent of imposing the condition of deposit
         of 50% of the decretal amount for setting aside the ex-parte
         judgment and award dated 16/01/2014 passed in Dispute No.
         10 of 2010, and the judgment and order dated 23/10/2019
         passed   by   the   learned     Maharashtra   State   Cooperative
         Appellate Court, Mumbai Bench at Aurangabad, in Revision No.
         56 of 2019, are quashed and set aside.

         (b)   The ex-parte judgment and award dated 16/01/2014
         passed in Dispute No. 10 of 2010 is hereby quashed and set
         aside without imposing any condition. Dispute No. 10 of 2010
         is restored to the file of the learned Cooperative Court, Jalgaon.

         (c)   The learned Cooperative Court, Jalgaon, is requested to
         decide Dispute No. 10 of 2010 at the earliest and preferably
         within a period of six months from today.

         (d)   The amount deposited by the petitioner in this Court
         along with accrued interest, if any, be remitted to the learned
         Cooperative Court, Jalgaon.




                                                  ( ROHIT W. JOSHI, J. )




vj gawade/-.




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