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Supreme Court of India 2018-09-26 partly_allowed

Super Bazar Karamchari Dalit Sangh & Ors vs Union of India & Ors

Bench: 3 — D.Y. Chandrachud

In Brief

Super Bazar, a multi-state cooperative society facing financial collapse, was placed under a Court-supervised revival scheme in 2002. Writers & Publishers Pvt. Ltd. (WPL) won a bidding process to manage the society and invested heavily, but the revival failed. In 2016, the Court ordered refund of WPL's investment with 6% interest, less verified deductions. In May 2018, the Court accepted WPL's objections to a CAG audit report and WPL received Rs. 35 crores. However, the Union challenged this order, arguing that the former Official Liquidator had instructed counsel not to appear, preventing full facts from reaching the Court. The Court recalled the 17 May 2018 order and dismissed WPL's contempt petitions, ordering a fresh hearing where all stakeholders—including the Union, employees, creditors, and CAG—would be properly heard to determine the final refund amount.

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Constitutional Law Cooperative Societies Judicial Review Contempt of Court Procedural Justice Multi-State Cooperative Societies Liquidation Revival Scheme

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