In Brief
A cooperative bank challenged a High Court order that terminated winding-up proceedings against a defaulting member. The Supreme Court held that under s. 109 of the Maharashtra Cooperative Societies Act, 1960, the expiry of the liquidation period does not automatically close recovery proceedings. Recovery of public funds is a necessity that cannot be abandoned by lapse of time. The Court allowed the appeal, permitting the bank to continue recovery proceedings against defaulting members despite the passage of time, emphasizing the society's obligation to protect public money and its core mission to support members' socio-economic welfare.
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