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Bombay High Court

VEEJ KAMGAR CO OPERATIVE CREDIT SO LTD THROUGH SECRETARY RAJKUMAR BABURAO JADHAVversusTHE STATE OF MAH AND ORS

Disposal
DISPOSED OFF

Holding

The petition is purely contractual and lacks substantive grounds for a writ; therefore, no direction under Article 226 can be issued.

Summary

The petitioner, Veej Kamgar Co‑Operative Credit Society, sought a writ directing M.S.E.D.C.L. to accept and encash two cheques issued by respondent No.6 and to refund the amounts to society members whose salaries had been deducted. The society had been appointed by M.S.E.D.C.L. to collect electricity dues and had contracted with respondent No.6 for this purpose, but respondent No.6 failed to deposit the collected sums, leading M.S.E.D.C.L. to recover the amounts from the society. The petitioner argued that the cheques should be honoured and the recovered sums returned to the employees. The Court observed that the dispute is purely contractual and that the petitioner is free to pursue recovery against respondent No.6 under the law, including via a recovery certificate already obtained. Consequently, the Court found no basis for issuing a writ under Article 226 and dismissed the petition.

Issues considered

  • Whether the High Court can issue a direction under Article 226 to compel M.S.E.D.C.L. to accept and encash the cheques issued by respondent No.6.
  • Whether the petition is maintainable given that the matter is a contractual dispute.
  • Whether the petitioner may recover the amounts through a recovery certificate or other legal means.

Subjects

  • contractual dispute
  • Article 226
  • writ petition
  • cheque encashment
  • recovery certificate
  • agency agreement
  • electricity dues
  • salary deduction

Judgment

2026:BHC-AUG:41351-DB

                                                                          921-WP.846.2010.doc


                           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                      BENCH AT AURANGABAD

                                 921 WRIT PETITION NO. 846 OF 2010
                                               WITH
                                CIVIL APPLICATION NO. 10038 OF 2026
                                           IN WP/846/2010

                Veej Kamgar Co Operative Credit So Ltd Through Secretary Rajkumar
                                             Baburao Jadhav
                                                 VERSUS
                                    The State of Maharashtra And Ors
                                                   ...
                Mr. S. L. Bhapkar, Advocate for the Petitioner.
                Mr. K. N. Lokhande, AGP for Respondent No.1-State.
                Mr. U. S. Malte (through VC), Advocate for Respondent Nos.2 to 5.
                Mr. U. B. Bilolikar, Advocate for Respondent No.6.
                                                   ...

                                                CORAM : KISHORE C. SANT &
                                                        JITENDRA JAIN, JJ.
                                                DATE    : 4th SEPTEMBER, 2026

                PER COURT :

                1.       Heard Mr. Bhapkar, learned advocate for the petitioner,

                Mr. Lokhande, learned AGP for respondent no.1-State, Mr. Malte,

                learned advocate for respondent nos.2 to 5 and Mr. Bilolikar, learned

                advocate for respondent no.6.


                2.       The prayer in the petition is to direct M.S.E.D.C.L. i.e.

                respondent nos.2 to 5 to accept cheques dated 27.11.2009 and

                25.12.2009 for amount of Rs.25,00,000/- and Rs.30,23,500/-

                respectively, allegedly issued by respondent no.6 in favour of

                respondent nos.2 to 5. It is further prayed for a direction to the
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company to encash the said cheques and refund the amounts to the

members of the petitioner-society, which are recovered from the

salary of this petitioner.


3.       On going through the submissions, it is seen that respondent

nos.2 to 5 had appointed the petitioner as an agent to collect the

dues for the charges of electricity from its consumers. The petitioner-

society, in turn, had entered into a contract with respondent no.6 for

the said purpose. It is the case of the petitioner that, though

respondent no.6 collected amount from the consumers, he did not

deposit the amount with respondent nos.2 to 5. The respondents,

however, recovered the amount from the society. The society paid the

amount by recovering the same from the salaries of its employees.


4.       The grievance of the petitioner is that, when respondent no.6

had been to the respondents with the cheques, M.S.E.D.C.L. did not

accept the said cheques. A direction is, therefore, sought to accept the

cheques and to deposit the cheque/amount with respondent nos.2 to

5, and thereafter, to refund the said amount to the employees of the

petitioner-society from whose salaries the amount which is already

recovered.


5.       Learned advocate for the petitioner further relies upon the

order passed by this Court in Writ Petition No.13367 of 2017 dated

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09.10.2025, wherein this Court had clarified that the order will not

preclude the petitioner to take appropriate steps for the recovery, in

pursuance of recovery certificate in accordance with law. Learned

advocate for the petitioner has placed on record additional affidavit

alongwith documents. The same is taken on record.


6.       This Court finds that this is purely a contractual matter. It was

open for the petitioner to prosecute the recovery and to start recovery

proceedings against respondent no.6. It is also now brought on

record that in the meantime, the society has obtained recovery

certificate against members of the managing body of the petitioner-

society which was then functioning. The recovery certificate is issued

on 10.05.2022. Be that as it may, this Court finds that it is open for

the petitioner to make a recovery in whatever manner permissible

under law from the concerned persons.


7.       It is also pointed out during the course of argument by Mr.

Malte that the M.S.E.D.C.L. did not accept the cheques from

respondent no.6 for the reason that the contract was with the

petitioner-society and thus there was no question of accepting

amount from anyone else other than the society.


8.       Considering all above, this Court need not issue any direction

under Article 226 of the Constitution of India. There is no substance

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in the writ petition. Except the liberty granted above, this Court

cannot entertain the petition. Petition, therefore, stands disposed off.


9.       Pending civil application(s), if any, stand disposed off.




 (JITENDRA JAIN, J.)                              (KISHORE C. SANT, J.)




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