The Paravur S.N.V. Regional ... vs The State Of Kerala
2021 Latest Caselaw 15461 Ker

                    IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                        PRESENT
                  THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
            FRIDAY, THE 23RD DAY OF JULY 2021 / 1ST SRAVANA, 1943
                              WP(C) NO. 25268 OF 2014
PETITIONER/S:

                  THE PARAVUR S.N.V. REGIONAL CO-OPERATIVE BANK LTD.
                  NO.1685, S.PARAVUR P.O., KOLLAM 691 301, REPRESENTED BY
                  ITS PRESIDENT.

                  BY ADVS.
                  SRI.B.SURESH KUMAR
                  SMT.ANUROOPA JAYADEVAN


RESPONDENT/S:

       1          THE STATE OF KERALA
                  REPRESENTED BY ITS PRINCIPAL SECRETARY TO THE CO-
                  OPERATIVE DEPARTMENT, SECRETARIAT, FORT P.O.,
                  THIRUVANANTHAPURAM - 695 023.

       2          THE REGISTRAR OF CO-OPERATIVE SOCIETIES
                  OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, FORT
                  P.O., THIRUVANANTHAPURAM - 695 023.

       3          THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES GENERAL
                  OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
                  CIVIL STATION, KOLLAM 691 013.

       4          THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES
                  (GENERAL) OFFICE OF THE ASSISTANT REGISTRAR OF CO-
                  OPERATIVE SOCIETIES, NEAR CIVIL STATION,
                  KOLLAM 691 013.

       5          THE RESERVE BANK OF INDIA
                  REPRESENTED BY DEPUTY GENERAL MANAGER, URBAN BANKS
                  DEPARTMENT, RESERVE BANK OF INDIA, FORT P.O,
                  THIRUVANANTHAPURAM - 695 023.

                  BY ADV SRI.MILLU DANDAPANI
                  SMT.MABLE C. KURIAN, GP


THIS       WRIT    PETITION   (CIVIL)   HAVING    COME   UP   FOR   ADMISSION   ON
23.07.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO.25268/2014
                              2

               P.V.KUNHIKRISHNAN, J
         -------------------------------
             W.P.(C)No.25268 of 2014
        --------------------------------
       Dated this the 23rd day of July 2021


                          JUDGMENT

The petitioner is a regional co-operative

bank. As per Ext.P1, the petitioner registered

on 19.11.1927 as Paravur Sree Narayana Vilasom

mutual help bank in Kollam Taluk. Subsequently

it is changed as S.N.V. Regional Co-operative

Bank in the year 1956. According to the

petitioner, the Reserve Bank of India directed

the petitioner to change the category of the

bank as Primary Agricultural Credit Society.

According to the petitioner as per Exts.P3 and

P4 amendment of the bye-law, the category is

changed to Primary Agricultural Credit Society.

Subsequently, the petitioner submitted an

application for licence as per the Banking

Regulations Act, 1949. That was rejected as

per Ext.P5 order by the RBI. The petitioner WP(C) NO.25268/2014

subsequently submitted Ext.P6 representation

which was also dismissed as per Ext.P7 order.

Aggrieved by Exts.P5 and P7 orders of the RBI,

this writ petition is filed.

2. Heard the learned counsel appearing for

the petitioner, the learned Standing Counsel

appearing for the RBI and the learned

Government Pleader also.

3. The learned counsel for the petitioner

submitted that as per the judgment of the Apex

Court in Pandurang Ganpati Chaugule v.

Vishwasrao Patil Murgud Sahakari Bank Ltd.

[2020(2)KHC 664] and the subsequent amendment

to the Banking Regulations Act, the petitioner

can apply for a licence. The learned counsel

submitted that Exts.P5 and P7 orders passed by

the RBI is illegal and unsustainable.

4. The learned Standing counsel appearing

for the RBI submitted that there is nothing

wrong in Exts.P5 and P7 as on the date on which

it is passed. The learned Standing counsel WP(C) NO.25268/2014

submitted that, if a fresh application is filed

for licence, the same will be considered in

accordance to law.

5. According to me, in the light of the

subsequent events, especially the amendment in

the Banking Regulations Act and also the

judgment of the Apex Court in Pandurang's

case(supra) there can be a direction to the

petitioner to file a fresh application for

license as per the Banking Regulations Act.

There can be a further direction to the RBI to

consider the same in accordance to law

untrammeled by any observation in Exts.P5 and

P7 orders and also in the light of the judgment

of the Apex Court in Pandurang's case(supra).

6. Therefore this writ petition is

disposed in the following manner:

(i) The petitioner is free to file a

fresh application for licence within one month

from the date of receipt of a copy of this

judgment.

WP(C) NO.25268/2014

(ii) If such an application is received

by the 5th respondent, the 5th respondent will

consider the same untrammeled by any

observation in Exts.P5 and P7 orders and also

in the light of the subsequent amendment in the

Banking Regulations Act and also the dictum

laid down by the Apex Court in Pandurang's

case(supra).

(iii) The above exercise should be

completed by the 5th respondent as expeditiously

as possible, at any rate, within five months

from the date of receipt of a copy of the

licence application.

SD/-

P.V.KUNHIKRISHNAN JUDGE

DM WP(C) NO.25268/2014

APPENDIX OF WP(C) 25268/2014

PETITIONER'S EXHIBITS

P1: A TRUE COPY OF THE CERTIFICATE DATED 19/11/1927 ISSUED BY THE REGISTRAR, TRAVANCORE MUTUAL HELP SOCIETY

P2: A TRUE COPY OF THE COMPLAINT C.C.491/2010 DATED 23/4/2010 FILED BY THE RESERVE BANK OF INDIA BEFORE THE MUNSIFF MAGISTRATE COURT, PARAVUR.

P3: A TRUE COPY OF THE CERTIFICATE DATED 16/12/2011 CLASSIFYING THE SOCIETY AS PRIMARY AGRICULTURAL CREDIT SOCIETY ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL)

P4: A TRUE COPY OF THE AMENDMENT TO BE CARRIED OUT BY THE SOCIETY DATED 25/11/2011 ISSUED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL)

P5:A TRUE COPY OF THE COMMUNCATION DATED 3/3/2014 ISSUED TO THE SOCIETY BY THE RESERVE BANK OF INDIA

P6: A TRUE COPY OF THE REPLY DATED 29/5/2014 ISSUED TO THE DEPUTY GENERAL MANAGER, URBAN BANK DEPARTMENT, RESERVE BANK OF INDIA, THIRUVANANTHAPURAM, BY THE SOCIETY

P7: A TRUE COPY OF THE COMMUNICATION DATED 31/7/2014 ISSUED TO THE SOCIETY BY THE RESERVE BANK OF INDIA.

RESPONDENTS' EXHIBITS

EXT.R5A: TRUE COPY OF THE LETTER DT.21.12.2007 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONER

EXT.R5B: TRUE COPY OF THE PUBLIC NOTICE DT.27.12.2007 PUBLISHED IN HINDU DAILY

EXT.R5C: TRUE COPY OF THE NOTICE DT.27.12.2007 PUBLISHED IN MALAYALA MANORAMA DAILY

EXT.R5D: TRUE COPY OF THE NOTICE DT.27.12.2007 PUBLISHED IN MATHRUBHUMI DAILY

EXT.R5E: TRUE COPY OF THE LETTER NO.1685/R1/07-08 DT.9.1.2008 ISSUED BY THE PETITIONER WP(C) NO.25268/2014

EXT.R5F: TRUE COPY OF THE LETTER DT.14.1.2008 ISSUED BY THE 5TH RESPONDENT

EXT.R5G: TRUE COPY OF THE LETTER DT.9.4.2008 ISSUED BY THE 5TH RESPONDENT

EXT.R5H: TRUE COPY OF THE LETTER NO.G1/1685/3/07-08 DT.5.5.2008 ISSUED BY THE PETITIONER

EXT.R5I: TRUE COPY OF THE LETTER DT.1.7.2008 ISSUED BY THE 5TH RESPONDENT

EXT.R5J: TRUE COPY OF THE LETTER DT.20.8.2008 ISSUED BY THE 5TH RESPONDENT

EXT.R5K: TRUE COPY OF THE LETTER NO.E1/09 DT.11.7.2009 ISSUED BY THE PETITIONER ALONG WITH ITS ENCLOSURES

EXT.R5L: TRUE COPY OF THE CERTIFICATE DT.16.12.2011 ISSUED BY THE CO-OPERATIVE JOINT REGISTRAR (GENERAL), KOLLAM

EXT.R5M: TRUE COPY OF THE LETTER NO.67/2014 DATED 29.5.2014 ISSUED BY THE PETITIONER

EXT.R5N: TRUE COPY OF THE AUDITED BALANCE SHEET, DT.28.2.2007

//TRUE COPY//

PA TO JUDGE