President, Meppayur Co-Op.Town ... vs The Registrar Of Co-Op.Societies ...
2021 Latest Caselaw 15465 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. 29606 OF 2011
PETITIONERS:

     1     PRESIDENT, MEPPAYUR CO-OP.TOWN BANK
           NO.F-1497, MEPPAYUR P.O., KOZHIKOE-673524.
     2     MEPPAYUR CO-OP.TOWN BANK LTD NO.F-1497
           MEPPAYUR P.O., KOZHIKOE-673524,, REPRESENTED BY
           ITS SECRETARY.
           BY ADVS.
           SRI.M.M.MONAYE
           SRI.M.PAUL VARGHESE

RESPONDENTS:

     1     THE REGISTRAR OF CO-OP.SOCIETIES AND ORS
           O/O THE REGISTRAR OF CO-OP.SOCIETIES,,
           THIRUVANANTHAPURAM-695001.
     2     EXECUTIVE DIRECTOR RESERVE BANK OF
           INDIA, CENTRAL OFFICE, SHAHID BHAGAT SINGH ROAD,,
           MUMBBAI-420001.
     3     DEPUTY GENERAL MANAGER
           URBAN BANKS DEPARTMENT, RESERVE BANK OF INDIA,,
           BAKERY JUNCTION, THIRUVANANTHAPURAM-695033.
     4     THE RESERVE BANK OF INDIA
           REPRESENTED BY ITS GOVERNOR, RBI BUILDINGS,, NEW
           DELHI-110 001.
           BY ADVS.
           GOVERNMENT PLEADER SMT. MABLE KURIAN
           SRI.MILLU DANDAPANI
           SMT.SUMATHY DANDAPANI SR.


      THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON   23.07.2021,   THE   COURT    ON   THE   SAME   DAY   DELIVERED   THE
FOLLOWING:
 W.P.(C).No.29606/2011

                                   2




                   P.V.KUNHIKRISHNAN, J.
                     -------------------------------
                   W.P.(C).No.29606 of 2011
             ----------------------------------------------
             Dated this the 23rd day of July, 2021


                            JUDGMENT

The 1st petitioner herein is the president of Meppayur Co-

operative Town Bank Ltd and the 2nd petitioner is the Bank

itself. This writ petition is filed with following prayers:

i. Issue a writ in the nature of certiorari or any other writ, order or direction, calling for the records leading to Exts P3, P5 and P10 and quash the same.

ii. Declare that the 2nd petitioner society is entitled to continue the banking business, it being a Primary Agricultural Credit Society.

iii. Issue any other appropriate writ, order, or direction as this Hon'ble Court may deem fit to issue, in the circumstances of the case.

iv. Award the cost of this proceedings.

W.P.(C).No.29606/2011

2. Exts.P3, P5 and P10 are the orders passed by the

3rd respondent. Short facts are like this:

As per Ext.P1, the petitioner society was registered as

Meppayur Co-operative Urban Bank Ltd.No.F-1497. That was

on 23.02.1951. Thereafter the petitioners applied for licence

as per the Banking Regulation Act, before the Reserve Bank of

India on 28.05.1966. After about 33 years, the request of the

petitioners was dismissed by the Reserve Bank as per Ext.P2

order dated 27.12.1999. Ext.P3 is the intimation given by the

Reserve Bank to the petitioner Bank. Thereafter, as per

Ext.P4, the name of the petitioner Bank is changed to

Meppayur Co-operative Town Bank Ltd No.F-1497. That was

on 09.06.2000. Subsequently as per Ext.P5, the Reserve Bank

published a notice in Mathrubhoomi daily, in which it is stated

that the petitioner is doing business without licence.

Thereafter the name of the petitioner was again changed to

Primary Credit Society. Thereafter the petitioner submitted

Ext.P6 representation before the Reserve Bank. This Court, as

per Ext.P7 judgment, directed the Reserve Bank to consider

Ext.P6 and the interim order passed by this Court was allowed

to continue till disposal of the representation. Subsequently W.P.(C).No.29606/2011

Ext.P8 notice was issued to the petitioner to which Ext.P9

written submission was submitted by the petitioner. In the

last portion of Ext.P9, it is specifically stated like this:

"It is humbly submitted that an opportunity to hear the Meppayur Society in person may be afforded, before taking any final decision in the matter."

Thereafter Ext.P10 order is passed by the Reserve Bank,

rejecting the request of the petitioner in Ext.P6. Aggrieved by

the same, this writ petition is filed.

3. Heard the counsel for the petitioners and the

Standing Counsel for the Reserve Bank. I heard the

Government Pleader also.

4. The counsel for the petitioners raised a short point

at the time of hearing. According to the counsel, when the

enquiry notice was received by the petitioners based on

Ext.P6 representation and Ext.P7 judgment of this Court, the

petitioners submitted Ext.P9 written submission in which a

specific request was made for giving an opportunity of

personal hearing. Without giving an opportunity of hearing,

Ext.P10 order is passed. The counsel submitted that there are

subsequent events also after Ext.P10 order. The counsel

submitted that as on that date also, the petitioners have W.P.(C).No.29606/2011

several contentions which the petitioners want to submit

before the authorities. That opportunity is denied.

5. The Standing Counsel for the Reserve Bank filed a

detailed counter affidavit disputing all the statement of facts

in the writ petition. The Standing Counsel submitted that in

Ext.P10 everything is considered in detail and even if an

opportunity of hearing is not given, that will not prejudice the

interest of the petitioners. The Standing Counsel submitted

that in the light of the subsequent events also, licence as per

the Banking Regulation Act and the permission to use the

word 'Bank' is necessary for functioning of the petitioner

society. Therefore the counsel submitted that there is nothing

to interfere in the matter.

6. Admittedly the petitioners submitted application

under Section 22 of the Banking Regulation Act on

28.05.1966. Ext.P3 is an order passed on 28.12.1999.

subsequently, after making certain amendment about the

name of the petitioners' institution, a representation is

submitted before the Reserve Bank. This Court directed the

Reserve Bank to consider the representation, as per Ext.P7

judgment. When written submission was submitted as evident W.P.(C).No.29606/2011

by Ext.P9, the petitioners specifically contended that an

opportunity of personal hearing is necessary in this case. But,

without giving such an opportunity, Ext.P10 is passed.

According to me, without going to the merit of the case,

Ext.P10 order can be quashed only for the purpose of giving

an opportunity of hearing to the petitioners. I make it clear

that I have not considered the matter on merit. The

authorities are free to pass appropriate orders in accordance

to law, after giving an opportunity of hearing to the

petitioners. Since there is a grievance to the petitioners that

Ext.P10 order is passed without hearing them, I am setting

aside Ext.P10.

Therefore, this writ petition is allowed in the following

manner:

1. Ext.P10 order is set aside.

2. The 3rd respondent is directed to reconsider

Ext.P6, along with Ext.P9 written submission,

after giving an opportunity of hearing to the

petitioners, as expeditiously as possible, at any

rate, within four months from the date of

receipt of a copy of this judgment.

W.P.(C).No.29606/2011

3. All coercive steps against the petitioners are

stayed till the disposal of Ext.P6

representation by the 3rd respondent.

4. All contentions of the petitioners and the

respondents are left open.

sd/-

                                          P.V.KUNHIKRISHNAN
JV                                               JUDGE
 W.P.(C).No.29606/2011





                APPENDIX OF WP(C) 29606/2011

PETITIONER EXHIBITS
Exhibit P1        TRUE COPY OF THE APPLICATION FOR
                  REGISTRATION CUM REGISTRATION

CERTIFICATE DATED 23/02/1951 UNDER THE MADRAS CO-OP. SOCIETIES ACT 1931.

Exhibit P2 TRUE COPY OF THE ORDER DATED 27/12/1999 ISSUED BY THE 2ND RESPONDENT.

Exhibit P3 TRUE COPY OF THE INTIMATION LETTER DATED 29/12/1999 ISSUED BY THE GENERAL MANAGER, RBI.

Exhibit P4 TRUE COPY OF THE CERTIFICATE OF REGISTRATION DATED 09/06/2000 ISSUED BY THE JOINT REGISTRAR OF CO-OP.

SOCIETIES, KOZHIKODE.

Exhibit P5 TRUE COPY OF THE NOTIFICATION PUBLISHED BY RESERVE BANK OF INDIA IN THE MATHRUBHOOMI DAILY DATED 21/05/2004.

Exhibit P6 TRUE COPY OF THE REPRESENTATION DATED 26/10/2005 ADDRESSED TO THE RESPONDENTS 2 TO 4 AND ANOTHER.

Exhibit P7 TRUE COPY OF THE JUDGMENT DATED 22/10/2008 IN WPC NO.32214/2005.

Exhibit P8 TRUE COPY OF THE LETTER DATED 28/05/2010 OF THE 3RD RESPONDENT.

Exhibit P9 TRUE COPY OF THE WRITTEN SUBMISSION DATED NIL SUBMITTED TO THE 3RD RESPONDENT BY THE 2ND PETITIONER SOCIETY.

W.P.(C).No.29606/2011

Exhibit P10 TRUE COPY OF THE ORDER DATED 29/09/2011 OF THE 3RD RESPONDENT, ALONG WITH THE COVERING LETTER DATED 10/10/2011.

Exhibit P11 TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 22/03/2008 ISSUED BY THE JOINT REGISTRAR OF CO-OP.

SOCIETIES, KOZHIKODE ALONG WITH THE RELEVANT PORTION OF THE AMENDED CLAUSE OF THE BYE-LAWS.

Exhibit P12 TRUE COPY OF THE GAZETTE NOTIFICATION DATED 23/11/2010.

Exhibit P13 TRUE COPY OF THE CATEGORICAL STATEMENT DATED 28/09/2011 ISSUED BY THE JOINT REGISTRAR (GENERAL) OF CO-OP SOCIETIES, KOZHIKODE.