In Brief
The Goa State Cooperative Bank, acting as liquidator of a wound-up fisheries cooperative society, sought to continue recovery proceedings against members who had defaulted on loans. The High Court had halted these proceedings, ruling that liquidation must cease after the statutory period expired under Section 109 of the Maharashtra Co-operative Societies Act, 1960. The Supreme Court reversed this, holding that members' liability for loans does not extinguish when liquidation ends. Recovery proceedings can continue, and the bank can pursue defaulters. The Court applied the principle of restitution to prevent members from unfairly escaping obligations through procedural delay or interim orders.
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