Karnataka High Court
Vitla Grameena Sahakari Bank Ltd vs The Deputy Registrar Of on 10 June, 2024
Author: R Devdas
Bench: R Devdas
-1-
NC: 2024:KHC:20220
WP No. 9051 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 10TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
WRIT PETITION NO. 9051 OF 2019 (CS-RES)
BETWEEN:
VITLA GRAMEENA SAHAKARI BANK LTD
BANTWAL TALUK, VITLA TOWN,
DK DISTRICT 574423.
REP BY ITS CHIEF EXEUCITIVE OFFICER,
S/O. DEVU GOWDA,
AGE 59 YEARS,
R/AT BANTWAL TALUK, VITLA TOWN,
DK DISTRICT 574423
...PETITIONER
(BY SRI. G BALAKRISHNA SHASTRY., ADVOCATE)
Digitally signed
by JUANITA
THEJESWINI AND:
Location: HIGH
COURT OF
KARNATAKA THE DEPUTY REGISTRAR OF
CO OPERATIVE SOCIETY
JANATHA BAZAR, 1ST FLOOR,
GANAPATHY HIGH SCHOOL ROAD,
MANGALURU,
DK DIST 575001
...RESPONDENT
(BY SRI. SIDDARTH BABU RAO., AGA)
-2-
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WP No. 9051 of 2019
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER
DATED 28.04.2018 PASSED BY THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES, D.K. DISTRICT, MANGALORE, TRUE
COPY OF WHICH IS PRODUCED AT ANNEXURE-H;QUASH THE
ORDER DATED 13.02.2009 PASSED BY THE DEPUTY
REGISTRAR OF CO-OPERATIVE SOCIEITES, D.K.DISTRICT,
MANGALORE, TRUE COPY OF WHICH IS PRODUCED AT
ANNEXURE-J AND ETC.,
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
- B GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
R. DEVDAS J., (ORAL):
The petitioner, a co-operative society initially
registered under Section 10 of the Madras Co-operative
Societies Act on 06.08.1955 and thereafter, after coming
into force of the Karnataka Co-operative Societies Act,
1959, the society was re-registered under the provisions
of the said Act, 1959 as "Vitla Co-operative Rural Bank
Limited". The petitioner is aggrieved of the impugned
orders dated 13.02.2019 and 28.04.2018 at Annexures -J
and H respectively. The sum and substance of the
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impugned orders are that the petitioner society is called
upon to remove the word "Bank Limited" and it is
permitted to use the word "Sangha" instead.
2. Learned Additional Government Advocate has
brought to the notice of this Court a decision of a co-
ordinate bench in the case of Bajpe Vyavasaya Seva
Sahakari Bank Limited /vs./State of Karnataka and
Others in W.P.No.11255/2011 and connected matters
dated 11.09.2023 and submits that this Court had an
occasion to consider similar grievances raised at the hands
of three such Co-operative Societies and having
considered the relevant provisions, the co-ordinate bench
has held that the petitioner societies cannot be permitted
to use the word 'Bank'.
3. Learned counsel for the petitioner however
seeks to draw the attention of this Court to Section 98W of
the Karnataka Co-operative Societies Act, 1959 and
submits that the restriction of using the word 'Bank' is
insofar as the primary agricultural credit societies or its
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federation or association, but the petitioner society is not a
primary agricultural credit society and therefore the
decision sought to be relied upon by the learned Additional
Government Advocate cannot be made applicable to the
present case.
4. Having gone through the judgments cited by
the learned Additional Government Advocate, this Court
finds that the co-ordinate bench has taken into
consideration not only Section 98W of the Act but also
Section 56(f) r/w Section 7 of the Banking Regulation Act,
1949 and has held that there is express mandate for a Co-
operative Bank to apply for and obtain necessary licences
from Reserve Bank of India, as also to comply with various
requirements mentioned therein including verifying of
accounts, maintaining of cash reserves, adhere to the
restrictions imposed therein, as also certain reporting
requirements. It was therefore held that unless there is
compliance of such requirement under the Bank
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Regulation Act by a Co-operative Society, a Co-operative
Society cannot use the word 'bank' in its name.
5. In paragraph 9.15, the Co-ordinate bench has
also considered similar submission which was made on
behalf of the petitioners societies therein stating that there
is a discrimination, since the word Primary Agricultural
Credit Co-operative Society under Section 98W and such
requirement appears to be only in respect of Primary
Agricultural Co-operative Society. However, the said
contention has been negated by the co-ordinate bench
while holding that the Banking Regulation Act are made
applicable to all entities engaged in banking activities,
requiring them to register and follow the guidelines therein
and therefore although Section 98W emphasize the word
Primary Agricultural Credit Co-operative Society, the
provision of the Banking Regulation Act is made applicable
to all Co-operative Societies.
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6. In that view of the matter since the issue is
already covered by a decision of co-ordinate bench of this
Court, this Court proceeds to dismiss the writ petition.
Accordingly, the writ petition stands dismissed.
Sd/-
JUDGE
KLY
CT: JL
