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Torque of the coil depends on the Force exerted on it and the distance between the opposite sides of the coil. For maximum torque, you need maximum force, and that can only be achieved in a magnetic field if maximum number of magnetic field lines cut through the coil. The maximum field lines will cut through the coil only when the coil lies parallel to the field lines. If the coil lies normal to the field lines, the field lines will pass through the empty space in the coil and there will be no force on the coil, let alone a turning effect.
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