In a major relief to Pimpri Chinchwad Sahakari Bank (PCSB), the Bombay High Court has set aside the order passed by the Divisional Joint Registrar, Cooperative Societies, Pune Division, which had earlier cancelled the Bank’s Recovery Certificate. The Court directed the Revisional Authority to reconsider the matter afresh.
The case concerns a loan of Rs 2.5 crore taken by borrower Arun Namdeo Pote, who allegedly defaulted on repayment.
After notices sent to the borrower were returned unclaimed, the Bank followed the legal procedure and published a notice in a local newspaper. Based on the documents and outstanding dues, a Recovery Certificate was issued in May 2019 under Section 101 of the Maharashtra Cooperative Societies Act.
Pote later challenged this certificate, claiming lack of proper notice and raising disputes about the loan amount. The Revisional Authority sided with him and directed the Bank to approach the Cooperative Court under Section 91.
The High Court, however, observed that the Revisional Authority failed to examine important statutory requirements-including whether the borrower had deposited the mandatory 50% of recoverable dues, and whether notice was properly served under Rule 86B.
The Court also noted that the previous order was vague, lacked proper reasoning, and did not analyse the documents on record.
Allowing the Bank’s writ petition, the High Court remanded the matter for fresh consideration. Both sides have been asked to appear before the Revisional Authority on 28 November 2025.
The ruling is clearly a favourable outcome for Pimpri Chinchwad Sahakari Bank.
