Kerala High Court
The Reserve Bank Of India vs U.A.Lathif Mla on 29 February, 2024
Author: Amit Rawal
Bench: Amit Rawal
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
THURSDAY, THE 29TH DAY OF FEBRUARY 2024 / 10TH PHALGUNA, 1945
WA NO. 1957 OF 2023
AGAINST THE JUDGMENT DATED 27.10.2023 IN WP(C) NO.12 OF
2023 OF HIGH COURT OF KERALA
APPELLANTS:
1 M. SAIDALAVI MASTER
AGED 57 YEARS
PRESIDENT, VETTATHUR SERVICE CO-OPERATIVE BANK
LTD., NO. M. 397, VETTATHUR. P.O. - 679 326,
MALAPPURAM DISTRICT, PIN - 679326
2 ZUBAIR P
AGED 57 YEARS
PRESIDENT, PALLIKKAL SERVICE CO-OPERATIVE BANK
LTD., NO.D. 1936, PALLIKKAL. P.O. - MALAPPURAM
DISTRICT., PIN - 673634
3 A.P. ABDUL AZEEZ
AGED 61 YEARS
PRESIDENT, ABDU RAHIMAN NAGAR SERVICE CO-
OPERATIVE BANK LTD., NO. F. 583, A.R. NAGAR. P.O.
- MALAPPURAM DISTRICT., PIN - 676305
4 A.P. UMMAR
AGED 63 YEARS
PRESIDENT, IRUMBUZHI SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1570, P.O. IRUMBUZHI, MALAPPURAM
DISTRICT, PIN - 676513
5 M. SIDHIQUE MASTER
AGED 57 YEARS
PRESIDENT, ANAKKAYAM SERVICE CO-OPERATIVE BANK
LTD., NO. F.880, ANAKKAYAM P.O. - 676 509,
MALAPPURAM DISTRICT, PIN - 676509
6 ABDUL HAMEED A.K
AGED 58 YEARS
PRESIDENT, KANMANAM SERVICE CO-OPERATIVE BANK
LTD., NO. 10585, KANMANAM. P.O. - 676 551,
MALAPPURAM DISTRICT, PIN - 676551
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
2
7 E.K. MUHAMED KUTTY
AGED 56 YEARS
PRESIDENT, VENGARA SERVICE CO-OPERATIVE RURAL
BANK LTD., NO. F.1186, VENGARA. P.O. - 676 304,
MALAPPURAM DISTRICT, PIN - 676304
8 ABDUL KAREEM
AGED 55 YEARS
PRESIDENT, VALAVANNUR SERVICE CO-OPERATIVE BANK
LTD., NO. D.1959, VALAVANNUR. P.O. - 676 551,
TIRUR, MALAPPURAM DISTRICT, PIN - 676551
9 P.V. MOIDEEN
AGED 55 YEARS
PRESIDENT, THENHIPPALAM SERVICE CO-OPERATIVE BANK
LTD., NO. D. 1969, THENHIPPALAM. P.O. - 673 636,
MALAPPURAM DISTRICT, PIN - 673636
10 KUTTY KAMMU
AGED 55 YEARS
PRESIDENT, PARAPPANANGADI CO-OPERATIVE SERVICE
BANK LTD., NO. F. 2302, PARAPPANANGADI. P.O. -
676 303, MALAPPURAM DISTRICT, PIN - 676303
11 V.A. BASHEER
AGED 58 YEARS
PRESIDENT, ANANTHAVUR SERVICE CO-OPERATIVE BANK
LTD. NO.F 1545, ANANTHAVUR, P.O. - 676 301,
MALAPPURAM DISTRICT, PIN - 676301
12 BASHEER. V.P
AGED 58 YEARS
PRESIDENT, MOOTHEDAM SERVICE CO-OPERATIVE BANK
LTD., NO. M. 277, MOOTHEDAM .P.O. MALAPPURAM
DISTRICT, PIN - 679331
13 K.M. RASHEED
AGED 54 YEARS
PRESIDENT, KOTTAKKAL SERVICE CO-OPERATIVE BANK
LTD., NO. D.1977, KOTTAKKAL. P.O., MALAPPURAM
DISTRICT, PIN - 676503
14 K.P. ALI
AGED 58 YEARS
PRESIDENT, KUTTIPPURAM SERVICE CO-OPERATIVE BANK
LTD., NO. M.729, KUTTIPPURAM P.O. - 679 571,
MALAPPURAM DISTRICT, PIN - 679571
15 SAKKEER HUSSAIN. T
AGED 55 YEARS
PRESIDENT, RAMAPURAM SERVICE CO-OPERATIVE BANK
LTD., NO. F.1445, RAMAPURAM P.O. - 679 321,
MALAPPURAM DISTRICT, PIN - 679321
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
3
16 SALMANUL FARIS. C,
AGED 52 YEARS
PRESIDENT, CHELEMBRA SERVICE CO-OPERATIVE BANK
LTD., NO.D.1953, CHELEMBRA. P.O., MALAPPURAM
DISTRICT, PIN - 673634
17 A.K. ALI
AGED 62 YEARS
PRESIDENT, MARANCHERY SERVICE CO-OPERATIVE BANK
LTD., NO. M.28, MARANCHERY. P.O. - 679 581,
PONNANI VIA, MALAPPURAM DISTRICT, PIN - 679581
18 C. MAMMIKUTTY
AGED 53 YEARS
PRESIDENT, PERINTALMANNA SERVICE CO-OPERATIVE
BANK LTD., NO.P-534, PERINTALMANNA P.O. - 679
322, MALAPPURAM DISTRICT, PIN - 679322
19 P.K. MOHAMMED KUTTY
AGED 60 YEARS
PRESIDENT, THE PANG SERVICE CO-OPERATIVE BANK
LTD., NO. F 1410, PANG. P.O. - MALAPPURAM
DISTRICT., PIN - 679338
20 ABDURAHIMAN
AGED 56 YEARS
PRESIDENT, KOTTAKKAL CO-OPERATIVE URBAN BANK
LTD., NO. 1378, KOTTAKKAL .P.O. - 676 503,
MALAPPURAM DISTRICT, PIN - 676503
21 ABBAS
AGED 55 YEARS
PRESIDENT, ALIPARAMBA SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1653, ALIPARAMBA.P.O. MALAPPURAM
DISTRICT, PIN - 679357
22 ANEEZ. T
AGED 54 YEARS
PRESIDENT, PANDALLUR SERVICE CO-OPERATIVE BANK
LTD., NO. F.1651, KADAMBODE. P.O., MANJERI VIA,
MALAPPURAM DISTRICT., PIN - 676121
23 YOUSAF MECHERI
AGED 50 YEARS
PRESIDENT, TRIKKALANGODE SERVICE CO-OPERATIVE
BANK LTD., NO. F. 1548, TRIKKALANGODE. P.O.
MALAPPURAM DISTRICT., PIN - 676123
24 M.K. UMMER
AGED 55 YEARS
PRESIDENT, KALIKAVU SERVICE CO-OPERATIVE BANK
LTD., NO. M.40, KALIKAVU. P.O. , MALAPPURAM
DISTRICT, PIN - 676525
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
4
25 MOHAMED RASHID
AGED 61 YEARS
PRESIDENT, ATHAVANAD SERVICE CO-OPERATIVE BANK
LTD., NO. D.1933, ATHAVANAD P.O. , VALANCHERY
VIA, MALAPPURAM DISTRICT, PIN - 676301
26 FATHIMA FASNI
AGED 52 YEARS
PRESIDENT, KURUMBATHUR SERVICE CO-OPERATIVE BANK
LTD., NO. F.1769, PUNNATHALA. P.O., VALANCHERY
VIA, MALAPPURAM DISTRICT, PIN - 676552
27 MOHAMMED ALI. M
AGED 60 YEARS
PRESIDENT, ARAKKUPARAMBA SERVICE CO-OPERATIVE
BANK LTD., NO.F-1580, ARAKKUPARAMBA P.O. -
MALAPPURAM DISTRICT, PIN - 679341
28 MAHABOOB EDAKKOT
AGED 59 YEARS
PRESIDENT, KONDOTTY SERVICE CO-OPERATIVE BANK
LTD., NO.D 1937, KONDOTTY. P.O., MALAPPURAM
DISTRICT, PIN - 673638
29 K.K. KALID
AGED 55 YEARS
PRESIDENT, KARULAI SERVICE CO-OPERATIVE BANK
LTD., NO. M. 30, KARULAI. P.O. - 679 330,
NILAMBUR VIA, MALAPPURAM DISTRICT, PIN - 679330
30 P. MUHAMMED
AGED 56 YEARS
PRESIDENT, ELANKUR SERVICE CO-OPERATIVE BANK
LTD., NO. 1540, P.O. ELANKUR, MANJERI VIA,
MALAPPURAM DISTRICT., PIN - 676122
31 MOHAMMED SATHAR M.P
AGED 60 YEARS
PRESIDENT, EAST ERANAD SERVICE CO-OPERATIVE BANK
LTD., NO.D. 1946, EDAKKARA. P.O. , NILAMBUR VIA,
MALAPPURAM DISTRICT., PIN - 679331
32 C. SHOUKATHALI
AGED 56 YEARS
PRESIDENT, KADANNAMANNA SERVICE CO-OP. BANK LTD.,
NO. 10561, KADANNAMANNA. P.O. - 679 324, MANKADA
VIA, MALAPPURAM DISTRICT, PIN - 679324
33 K. MOHAMMED
AGED 54 YEARS
PRESIDENT, KARUVARAKUNDU SERVICE CO-OPERATIVE
BANK LTD., NO. F. 1191, KARUVARAKUNDU. P.O. - 676
523, MALAPPURAM DISTRICT, PIN - 676523
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
5
34 KANNIAN MUHAMED ALI
AGED 55 YEARS
PRESIDENT, MAMPAD SERVICE CO-OPERATIVE BANK LTD.,
NO.F 1865, MAMPAD. P.O., MANJERI VIA, MALAPPURAM
DISTRICT, PIN - 676542
35 M. AHAMMEDALI
AGED 53 YEARS
PRESIDENT, TIRURANGADI SERVICE CO-OPERATIVE BANK
LTD., NO.F 1185, TIRURANGADI. P.O. - 676 306,
MALAPPURAM DISTRICT, PIN - 676306
36 ALI KALATHIL
AGED 60 YEARS
PRESIDENT, MANKADA SERVICE CO-OPERATIVE BANK
LTD., NO. 937, MANKADA. P.O., MALAPPURAM
DISTRICT, PIN - 679324
37 ABDUL MAHABOOB KURIKKAL
AGED 60 YEARS
PRESIDENT, PAYYANAD SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1590, P.O. PAYYANAD , MANJERI. VIA,
MALAPPURAM DISTRICT, PIN - 676122
38 K.P. MUHAMED
AGED 55 YEARS
PRESIDENT, MANKADA PALLIPPURAM SERVICE CO-
OPERATIVE BANK LTD., NO. 2317, PADINHATTUMMURI.
P.O. - 676 506, MALAPPURAM DISTRICT., PIN -
676506
39 MOOSAKKUTTY
AGED 60 YEARS
PRESIDENT, KURUPPATHAL SERVICE CO-OPERATIVE BANK
LTD., NO. M. 495, KULATHUR. P.O. - 679 338,
MALAPPURAM DISTRICT., PIN - 679338
40 C. ABDUL KAREEM
AGED 56 YEARS
PRESIDENT, MELATTUR SERVICE CO-OP. BANK LTD.,
NO.F-1183, MELATTUR P.O - 679 326, MALAPPURAM
DISTRICT, PIN - 679326
41 NASRUDHEEN. E
AGED 61 YEARS
PRESIDENT, CHERUKAVU PANCHAYATH SERVICE CO-OP.
BANK LTD., NO. M. 285, KANNAMVETTIKKAVU. P.O. ,
PULIKKAL, AYIKKARAPPADI, MALAPPURAM DISTRICT, PIN
- 673637
42 BASHEER T
AGED 54 YEARS
PRESIDENT, ANAMANGAD SERVICE CO-OPERATIVE BANK
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
6
LTD., NO.F.1182, ANAMANGAD P.O., MALAPPURAM
DISTRICT., PIN - 679357
43 E.K. UMMER
AGED 60 YEARS
PRESIDENT, VETTIKKATTIRI SERVICE CO-OPERATIVE
SOCIETY LTD., NO. F. 1889, VALLUVANGAD SOUTH.
P.O., PANDIKKAD VIA, MALAPPURAM DISTRICT, PIN -
676521
44 ABDUL MAJEED
AGED 44 YEARS
PRESIDENT, MANJERI SERVICE CO-OPERATIVE BANK
LTD., NO.M. 31, MANJERI P.O., MALAPPURAM
DISTRICT, PIN - 676121
45 MOIDEENKUTTY. M
AGED 54 YEARS
PRESIDENT, MORAYUR SERVICE CO-OPERATIVE BANK
LTD., NO.D. 1938, MORAYUR.P.O., KONDOTTY VIA,
MALAPPURAM DISTRICT., PIN - 673624
46 V. HAMZA
AGED 63 YEARS
PRESIDENT, THACHINGANADAM SERVICE CO-OPERATIVE
BANK LTD., NO. 10152, THACHINGANADAM P.O. - 679
325, PATTIKKAD VIA, MALAPPURAM DISTRICT, PIN -
679325
47 MAKBOOL. P
AGED 48 YEARS
PRESIDENT, KALPAKANCHERY SERVICE CO-OPERATIVE
BANK LTD. NO.1808, KALPAKANCHERY. P.O.,
MALAPPURAM DISTRICT, PIN - 676551
48 SUBAIR E.M
AGED 55 YEARS
THUVVUR PANCHAYATH SERVICE CO-OPERATIVE BANK LTD.
NO.M 492, THUVVUR P.O., MALAPPURAM DISTRICT., PIN
- 679327
49 ABIDA AYYOLI
AGED 55 YEARS
PRESIDENT, NEDIYIRUPPU SERVICE CO-OPERATIVE BANK
LTD., NO. D. 1934, P.O. NEDIYIRUPPU - 673 638,
KONDOTTY VIA, MALAPPURAM DISTRICT, PIN - 673638
50 NALAKATH HAMZA
AGED 60 YEARS
PRESIDENT, THAZHEKKODE SERVICE CO-OPERATIVE BANK
LTD., NO.P.413, THAZHEKODE WEST P.O.,
PERINTALMANNA VIA. MALAPPURAM DISTRICT, PIN -
679341
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
7
51 M.P. ABDU RAHIMAN
AGED 60 YEARS
PRESIDENT, PULIKKAL SERVICE CO-OPERTIVE BANK
LTD., NO. F 1892, PULIKKAL. P.O. , MALAPPURAM
DISTRICT, PIN - 673637
52 SIHABUDHEEN P.K,
AGED 50 YEARS
PRESIDENT, CHEEKODE SERVICE CO-OPERATIVE. BANK
LTD., NO.F 1897, OMANUR P.O., CHERUVAYUR VIA,
MALAPPURAM DISTRICT, PIN - 673645
53 RAVEENDRAN
AGED 56 YEARS
PRESIDENT, EDAPPAL PANCHAYATH SERVICE CO-
OPERATIVE BANK LTD., EDAPPAL. P.O. MALAPPURAM
DISTRICT., PIN - 679576
54 K. KABEER
AGED 53 YEARS
PRESIDENT, EDAPPATTA SERVICE CO-OPERATIVE BANK
LTD., NO. M. 506, EDAPPATTA P.O. - 679 326,
MALAPPURAM DISTRICT, PIN - 679326
55 MOHAMMED NAVAS. V,
AGED 60 YEARS
NANNAMMUKKU PANCHAYATH SERVICE SAHAKARANA BANK
LTD, NANNAMMUKKU P.O., MALAPPURAM DISTRICT., PIN
- 679575
56 ALAVI. M
AGED 63 YEARS
PRESIDENT, OTHUKKUNGAL SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1039, OTHUKKUNGAL P.O. MALAPPURAM
DISTRICT, PIN - 676528
57 ADV. N.C FAIZAL
AGED 55 YEARS
PRESIDENT, MANJERI CO-OPERATIVE URBAN BANK LTD.
NO. 1726, MANJERI. P.O. - 676 121, MALAPPURAM
DISTRICT, PIN - 676121
58 M.K. NOUSHAD
AGED 60 YEARS
PRESIDENT, VAZHAKKAD PANCHAYATH SERVICE CO-
OPERATIVE BANK LTD., NO. D. 191, VAZHAKKAD. P.O.,
MALAPPURAM DISTRICT, PIN - 673640
59 P.T. AJAYMOHAN
AGED 56 YEARS
PRESIDENT, ANDATHODE SERVICE CO-OPERATIVE BANK
LTD., NO.F-1249, ERAMANGALAM P.O., MALAPPURAM
DISTRICT, PIN - 679587
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
8
60 PATHIL ASHRAF
AGED 57 YEARS
PRESIDENT, VATTAMKULAM PANCHAYATH SERVICE CO-
OPERATIVE BANK LTD., NO. M. 481, VATTAMKULAM P.O.
- 679 578, MALAPPURAM DISTRICT, PIN - 679578
61 KAREEM. C
AGED 56 YEARS
PRESIDENT, MAKKARAPARAMBA SERVICE CO-OPERATIVE
BANK LTD., NO.P-576, MAKKARAPARAMBA P.O. - 676
507, MALAPPURAM DISTRICT, PIN - 676507
62 UNNEEDU HAJI
AGED 58 YEARS
PRESIDENT, POOKKOTTUR SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1492, POOKKOTTUR. P.O. - 676 517,
MALAPPURAM DISTRICT, PIN - 676517
63 P. ABDU
AGED 55 YEARS
PRESIDENT, VALLUVAMBRAM SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1564, VALLUVAMBRAM.P.O., MALAPPURAM
DISTRICT, PIN - 673642
64 ABDUL RAZAK
AGED 54 YEARS
PRESIDENT, KODUR CO-OPERATIVE RURAL BANK LTD.,
NO. M. 665, WEST KODUR, P.O. KODUR - 676 504,
MALAPPURAM DISTRICT, PIN - 676504
65 C.K. JAIDEV
AGED 55 YEARS
PRESIDENT, TIRUVALI SERVICE CO-OPERTIVE BANK
LTD., NO. F. 1403, TIRUVALI P.O. - 676 123,
MANJERI VIA, MALAPPURAM DISTRICT, PIN - 676123
66 P.P. KOYA MOIDEEN
AGED 59 YEARS
PRESIDENT, VETTOM SERVICE CO-OPERATIVE BANK LTD.,
NO. 1823, VETTOM. P.O. - 676 102, MALAPPURAM
DISTRICT, PIN - 676102
67 MOHAMMED NOUSHAD
AGED 54 YEARS
PRESIDENT, MALAPPURAM SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1829, UP HILL, MALAPPURAM P.O.,
MALAPPURAM DISTRICT, PIN - 676505
68 M. ABDULLA HAJI
AGED 58 YEARS
PRESIDENT, PULPATTA SERVICE CO-OP. BANK LTD., NO.
F 1521, P.O. PULPATTA - 673 641, MALAPPURAM
DISTRICT, PIN - 673641
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
9
69 C. ABDUL NASAR
AGED 68 YEARS
PRESIDENT, VALANCHERY SERVICE CO-OPERATIVE BANK
LTD., NO. M. 728, VALANCHERY P.O - 676 552,
MALAPPURAM DISTRICT, PIN - 676552
70 P.K. ABDUSSALAM
AGED 61 YEARS
PRESIDENT, PONMUNDAM SERVICE CO-OPERATIVE BANK
LTD., NO. 10820, PONMUNDAM. P.O., MALAPPURAM
DISTRICT, PIN - 676106
71 K.M. CHEKKUTTY
AGED 55 YEARS
PRESIDENT, CHERIYAMUNDAM SERVICE CO-OPERATIVE
BANK LTD., THALAKKADATHUR P.O., MALAPPURAM
DISTRICT., PIN - 676103
72 R. MOHAMMED MASTER
AGED 58 YEARS
PRESIDENT, MANGALAM SERVICE CO-OPERATIVE BANK
LTD., NO. 9701, MANGALAM. P.O., MALAPPURAM
DISTRICT, PIN - 676561
73 SREEDHARAN
AGED 58 YEARS
PRESIDENT, PONNANI CO-OPERATIVE URBAN BANK LTD.,
NO. M. 372, PONNANI P.O. , MALAPPURAM DISTRICT,
PIN - 679577
74 V.P.O. MOHAMMED AZGAR
AGED 55 YEARS
PRESIDENT, THANALUR SERVICE CO-OPERATIVE BANK
LTD., NO.M-2, THANALUR P.O. - 676 307, MALAPPURAM
DISTRICT, PIN - 676307
75 A.K. AHAMED KUTTY
AGED 57 YEARS
PRESIDENT, PARAPPUR SERVICE CO-OPERATIVE BANK
LTD., NO. D. 1987, PARAPPUR. P.O. - 676 503,
KOTTAKKAL VIA, MALAPPURAM DISTRICT, PIN - 676503
76 ADV. A.P. NIZAR
AGED 59 YEARS
PRESIDENT, OORAKAM SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1447, P.O. OORAKAM, MELMURI,
MALAPPURAM DISTRICT, PIN - 676510
77 ARYADAN SHOUKATHALI
AGED 51 YEARS
CHAIRMAN, THE NILAMBUR CO-OPERATIVE URBAN BANK
LTD., NO.F 1043, NILAMBUR, MALAPPURAM DISTRICT,
PIN - 679329
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
10
78 V.P. ABDUL KAREEM
AGED 54 YEARS
PRESIDENT, AMARAMBALAM SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1099, POOKKOTTUMPADAM. P.O. - 679
332, MALAPPURAM DISTRICT., PIN - 679332
79 A.U. SEBASTIAN
AGED 55 YEARS
PRESIDENT, CHUNGATHARA SERVICE CO-OPERATIVE BANK
LTD., NO. F.1807, CHUNGATHARA. P.O.-679 334,
MALAPPURAM DISTRICT, PIN - 679334
80 PRAKASAN. C.R,
AGED 57 YEARS
PRESIDENT, POTHUKAL SERVICE CO-OP. BANK LTD., NO.
M. 255, P.O. BHOODAN COLONY, CHUNGATHARA VIA,
MALAPPURAM DISTRICT, PIN - 679334
81 ADV. BABU MOHANA KURUP
AGED 58 YEARS
PRESIDENT, NILAMBUR SERVICE CO-OPERATIVE BANK
LTD., NO.D. 1972, CHANDAKKUNNU. P.O. - 679 329,
NILAMBUR, MALAPPURAM DISTRICT, PIN - 679329
82 BENNY. K.M
AGED 60 YEARS
PRESIDENT, CHALIYAR SERVICE CO-OPERATIVE BANK
LTD., NO. M 330, ERANHIMANGAD P.O., NILAMBUR VIA,
MALAPPURAM DISTRICT, PIN - 679329
83 K.C JOB MASTER
AGED 57 YEARS
PRESIDENT, VAZHIKKADAVU SERVICE CO-OPERATIVE BANK
LTD., NO. F. 1668, MANIMOOLY. P.O. - 679 333,
NILAMBUR VIA, MALAPPURAM DISTRICT, PIN - 679333
84 VINOD KUMAR. T,
AGED 55 YEARS
PRESIDENT, VALLIKKUNNU SERVICE CO-OPERATIVE BANK
LTD., NO.M-4, VALLIKKUNNU P.O., KADALUNDI NAGARAM
VIA, MALAPPURAM DISTRICT, PIN - 673314
85 M.A .ASEEZ
AGED 54 YEARS
PRESIDENT, VELIMUKKU SERVICE CO-OPERATIVE BANK
LTD., NO. 7725, VELIMUKKU SOUTH. P.O.,
TIRURANGADI VIA, MALAPPURAM DISTRICT., PIN -
676317
86 M.C. MOHAMMED ALI
AGED 57 YEARS
PRESIDENT, PERUVALLUR SERVICE CO-OPERATIVE BANK
LTD., NO. D.1979, PARAMBIL PEEDIKA P.O. -
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
11
TIRURANGADI VIA, MALAPPURAM DISTRICT, PIN -
676317
87 MOHAMMED ASHRAF. P
AGED 58 YEARS
PRESIDENT, THENNALA PANCHAYATH SERVICE CO-
OPERATIVE BANK LTD., NO. F.720, VALAKKULAM P.O.
MALAPPURAM DISTRICT, PIN - 676508
88 U. KUNHI MOHAMMED
AGED 56 YEARS
PRESIDENT, EDAVANNA SERVICE CO-OPERATIVE BANK
LTD., NO.9261, EDAVANNA P.O., MANJERI VIA,
MALAPPURAM DISTRICT., PIN - 676541
89 ADV. BASHEERUDHEEN. M
AGED 53 YEARS
PRESIDENT, KAVANUR SERVICE CO-OP. BANK LTD.,
NO.10252, P.O. KAVANOOR, AREACODE VIA, MALAPPURAM
DISTRICT, PIN - 673639
90 SIDHEEK PANTHAVOOR
AGED 61 YEARS
PRESIDENT, CHANGARAMKULAM SERVICE CO-OPERATIVE
BANK LTD., NO.9260, NANNAMUKKU P.O. 679 575,
MALAPPURAM DISTRICT, PIN - 679575
91 IBRAHIM. M
AGED 55 YEARS
PRESIDENT, KUZHIMANNA SERVICE CO-OPERATIVE BANK
LTD., NO. D.1899, KIZHISSERI, KUZHIMANNA P.O.,
MALAPPURAM DISTRICT, PIN - 673641
92 C. NAZIR AHAMED
AGED 54 YEARS
PRESIDENT, TIRUR SERVICE CO-OPERATIVE BANK LTD.,
NO. 10094, TIRUR P.O., EAST BAZAR, MALAPPURAM
DISTRICT, PIN - 676101
93 RADHAKRISHNAN
AGED 58 YEARS
PRESIDENT, ANGADIPPURAM SERVICE CO-OPERATIVE BANK
LTD., NO.P.581, ANGADIPPURAM P.O.- MALAPPURAM
DISTRICT, PIN - 679321
BY ADVS.GEORGE POONTHOTTAM (SR.)
NISHA GEORGE
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
12
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
DEPARTMENT OF CO-OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
D.P.I. JUNCTION, JAWAHAR SAHAKARANA BHAVAN,
THIRUVANANTHAPURAM, PIN - 695014
3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE JOINT REGISTRAR OF CO- OPERATIVE
SOCIETIES (GENERAL), CIVIL STATION ROAD, UP HILL,
MALAPPURAM DISTRICT., PIN - 673505
4 THE RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, C-7, 18TH FLOOR, SHAHID
BHAGATH SINGH MARG, FORT, MUMBAI, REPRESENTED BY
THE GOVERNOR, PIN - 500001
5 THE MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD.
NO. 4329
HEAD OFFICE, P.B. NO. 8, MALAPPURAM, REPRESENTED
BY THE GENERAL MANAGER., PIN - 676505
6 GOVERNMENT OF INDIA
REPRESENTED BY THE SECRETARY, MINISTRY OF CO-
OPERATION, ATAL AKSHAY URJA BHAWAN, CGO COMPLEX,
LODHI ROAD, BEHIND NIA BUILDING, NEW DELHI, PIN -
110003
7 THE CHAIRMAN, NATIONAL BANK FOR AGRICULTURAL AND
RURAL DEVELOPMENT
(NABARD), CENTRAL OFFICE, BANDRA KURLA COMPLEX,
BKC ROAD, BANDRA, MUMBAI., PIN - 400051
BY ADVS.
ADVOCATE GENERAL -SRI.K.GOPALAKRISHNA KURUP
SHRI.P.P.THAJUDEEN SPL. G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
06.02.2024, ALONG WITH WA.1962/2023, 1975/2023, 1977/2023 &
2114/2023, THE COURT ON 29.02.2024 DELIVERED THE FOLLOWING:
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
13
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
THURSDAY, THE 29TH DAY OF FEBRUARY 2024 / 10TH PHALGUNA, 1945
WA NO. 1962 OF 2023
AGAINST THE JUDGMENT DATED 27.10.2023 IN WP(C) NO.4215 OF
2023 OF HIGH COURT OF KERALA
APPELLANTS:
1 U.A.LATHIF MLA
AGED 71 YEARS
FORMER PRESIDENT, THE MALAPPURAM DISTRICT CO-
OPERATIVE BANK LTD. NO. 4329 AND DELEGATE,
MANJERI URBAN CO-OPERATIVE BANK, MANJERI,
MALAPPURAM DISTRICT, PIN - 676121
2 P.T. AJAY MOHAN
AGED 56 YEARS
FORMER VICE PRESIDENT, THE MALAPPURAM DISTRICT
CO-OPERATIVE BANK LTD. NO. 4329 AND DELEGATE,
ANDATHODE SERVICE CO-OPERATIVE BANK, ANDATHODE,
MALAPPURAM DISTRICT, PIN - 679564
BY ADVS.GEORGE POONTHOTTAM (SR.)
NISHA GEORGE
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
DEPARTMENT OF CO-OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
D.P.I. JUNCTION, JAWAHAR SAHAKARANA BHAVAN,
THIRUVANANTHAPURAM, PIN - 695014
3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE JOINT REGISTRAR OF CO- OPERATIVE
SOCIETIES (GENERAL), CIVIL STATION ROAD, UP HILL,
MALAPPURAM DISTRICT, PIN - 673505
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
14
4 THE RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, C-7, 18TH FLOOR, SHAHID
BHAGATH SINGH MARG, FORT, MUMBAI - 400001,
REPRESENTED BY THE GOVERNOR, PIN - 400001
5 THE REGIONAL DIRECTOR
THE RESERVE BANK OF INDIA BAKERY JUNCTION, P.B
NO.6507, THIRUVANANTHAPURAM - 695 033, PIN -
695033
6 MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD.
RE-NAMED AS 'KERALA BANK', PB NO 6515, COBANK
TOWERS, PALAYAM, THIRUVANANTHAPURAM - 695 033,
REPRESENTED BY THE MANAGING DIRECTOR, PIN -
695033
7 KERALA BANK EMPLOYEES FEDERATION(KBEF)
MALAPPURAM DISTRICT COMMITTEE, DILEEP MUKHARJEE
BHAVAN ,MALAPPURAM P.O.MALAPPURAM, PIN - 676121
REPRESENTED BY ITS SECRETARY IS IMPLEADED AS
ADDITIONAL R7 VIDE ORDER DATED 04/07/2023 IN IA
2/2023.
8 GOVINDA PRASAD P.
S/O.NARAYANAN, PRESIDENT, ELAMKULAM SERVICE CO-
OPERATIVE BANK LTD. NO.F1536, ELAMKULAM, PIN-678
340, MALAPPURAM DISTRICT, RESIDING AT PADINHARE
PUZHIKKUTH, KUNNAKKAV P.O, MALAPPURAM DISTRICT.,
PIN - 678340
9 THE THIRUNAVAYA SERVICE CO-OPERATIVE BANK
LTD.NO.1910 THIRUNAVAYA,
MALAPPURAM DISTRICT, PIN-676 301 RESIDING AT
KALPAKAMCHERRY HOUSE P.O, ALATHIYUR, MALAPPURAM
DISTRICT REPRESENTED BY SECRETARY SURESH K.M,
S/0.PARANGODAN NAIR., PIN - 676301
10 THE TRIPANGODE SERVICE CO-OPERATIVE BANK
LTD.NO.1890 TRIPANGODE,
MALAPPURAM DISTRICT, PIN-676 301, RESIDING AT
KARATHAPARATHOTTATHIL HOUSE P.O, ALATHOOR, IIRUR-
2, MALAPPURAM DISTRICT REPRESENTED BY PRESIDENT,
K.T. VELAYUDHAN, S/O.KRISHNAN NAIR., PIN - 676301
11 THE PURATHUR SERVICE CO-OPERATIVE BANK
LTD.NO.D1902 PURATHUR,
MALAPPURAM DISTRICT, PIN-676 108 REPRESENTED BY
ITS SECRETARY, MALLIKKA, D/O.KUNHJALIKKAN., PIN -
676108
12 THE KURVAMBALAN SERVICE CO-OPERATIVE BANK
LTD.NO.F1638 KURUVAMBALAM,
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
15
MALAPPURAM DISTRICT, PIN-679 338, REPRESENTED BY
ITS PRESIDENT, M.B.RAJESH, S/O.M.B.BHASKARAN
NAIR., PIN - 679338
13 THE WANDOOR SERVICE CO-OPERATIVE BANK
LTD.NO.M387,
WANDOOR, MALAPPURAM DISTRICT, PIN-679 328
REPRESENTED BY ITS PRESIDENT, K.T.MUHAMMADALI,
S/O.MUHAMMAD., PIN - 679328
14 THE OZHUR SERVICE CO-OPERATIVE BANK LTD. OZHUR,
MALAPPURAM DISTRICT, PIN-676 307, REPRESENTED BY
ITS PRESIDENT, K.T.SREENIVAS BABU, S/O.
JANARDHANA MENON K., PIN - 676307
15 THE NIRAMARUTHUR SERVICE CO-OPERATIVE BANK LTD.
M 612, P.O.NIRAMARUTHUR PIN-679 104, MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT, IBRAHIM
K.P, S/O.MUHAMMAD., PIN - 679104
16 THE MARAKKARA SERVICE CO-OPERATIVE BANK LTD,
NO.F.10738 MARAKKARA SERVICE CO-OPERATIVE BANK
LTD.NO.F 10738, MARAKKARA, PIN-676 553 MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT,
K.KRISHNAN, S/O.CHAKKAPPAN, PIN - 676553
17 THE VADAKKUMPURAM SERVICE CO-OPERATIVE BANK
LTD.NO., F1505 VADAKKUMBRAM,
MALAPPURAM DISTRICT, PIN-676 552 REPRESENTED BY
ITS VICE PRESIDENT, MOHANAN P.M, S/O.GOPALAN
NAIR, PIN - 676552
18 THE CHOKKAD SERVICE CO-OPERATIVE BANK
LTD.NO.M602,
P.O.CHOKKAD-679 332, MALAPPURAM DISTRICT
REPRESENTED BY ITS PRESIDENT, P.K.UMMER,
S/O.SULAIMAN., PIN - 679332
19 THE KOLKKALAM SERVICE CO-OPERATIVE BANK LTD,
NO.F 1073 CHENGOTTUR P.O, MALAPPURAM DISTRICT,
PIN-676503 REPRESENTED BY ITS PRESIDENT
K.U.IQBAL, S/O.K.U.UMMER, PIN - 676503
20 THE PERUMANNA KLARI SERVICE CO-OPERATIVE BANK
LTD.F770 P.O.KUTTIPPALA,
MALAPPURAM DISTRICT, PIN 676501 REPRESENTED BY
ITS PRESIDENT, HARIDASAN KIZHAKKINAKATH., PIN -
676501
21 THE VAZHAYOOR SERVICE CO-OPERATIVE BANK LTD,NO.D
1G9G P.O,
AZHINJILAM, PIN-676 632, MALAPPURAM DISTRICT
REPRESENTED BY ITS PRESIDENT, K.SUBRAMANIAN
MASTER, S/O. VERAYUDHAN K., PIN - 676632
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
16
22 THE CHEMBRASSERI SERVICE CO-OPERATIVE BANK
LTD.NO.9151 CHEMBRASSERI,
MALAPPURAM DISTRICT, PIN-67652, REPRESENTED BY
ITS PRESIDENT, SANKARAN., PIN - 676652
23 THE AREACODE SERVICE CO-OPERATIVE BANK LTD.NO.F
1571 AREACODE,
MALAPPURAM DISTRICT, PIN-673 639 REPRESENTED BY
ITS PRESIDENT, NASAR, S/.MAMMAD., PIN - 673639
24 THE MUTHUVALLUR SERVICE CO-OPERATIVE BANK
LTD.NO.MG39
VILAYIL P.O, PIN-673 641, MALAPPURAM DISTRICT
REPESENTED BY ITS PRESIDENT, ANILKUMAR K,
S/O.K.DHAMODHARAN NAIR., PIN - 673641
25 THE PONNANI SERVICE CO-OPERATIVE BANK LTD.NO.4841
PONNANI P.O,
MALAPPURAM DISTRICT, PIN-679 577 REPRESENTED BY
ITS PRESIDENT, T.P.UMMER, S/O.KUNHIBAVA., PIN -
679577
26 THE KEEZHUPARMBA SERVICE CO-OPERATIVE BANK
LTD.NO.M 396 KEEZHUPARAMBA,
P.O, VALILLAPUZHA, MALAPPURAM DISTRICT, PIN-679
577, REPRESENTED BY ITS PRESIDENT, K.V.MUNEER,
S/O.ALI., PIN - 679577
27 THE PORUR SERVICE CO-OPERATIVE BANK L;TD.NO.M357
P.O,
CHATHANGOTTUPURAM, PIN-679 325 MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT,
U.C.NANDAKUMAR, S/O.VASUDEVAN NAMBOOTHIRI., PIN -
679325
28 THE URANGATTIRI SERVICE CO-OPERATIVE BANK
LTD.NO.6895
THERATTAMMAL, P.O.URANGATTIRI MALAPPURAM
DISTRICT, PIN-673 639 REPRESENTED BY ITS
PRESIDENT, K.M.KURIAKOSE, S/O.MATHAYI., PIN -
673639
29 THE EDAPAL REGIONAL SERVICE CO-OPERATIVE BANK
LTD.NO.P515
EDAPAL, PIN-679 576, MALAPPURAM DISTRICT
REPRESENTED BY ITS PRESIDENT, P.P.MOHANDAS,
S/O.ACHUNNI., PIN - 679576
30 THE ARIYALLUR SERVICE CO-OPERATIVE BANK
LTD.NO.F7730 H.O
ARIYALLUR, PIN-6763L2, MALAPPURAM DISTRICT,
REPRESENTED BY ITS PRESIDENT, C.M.ARUMUGHAN,
S/O.THEYYUTTI, PIN - 676312
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
17
31 THE THAVANUR SERVICE CO-OPERATIVE BANK LTD NO.P
516
THAVANUR, MALAPPURAM DISTRICT, PIN-679 573
REPRESENTED BY ITS PRESIDENT JYOTHI, D/O.
PRABHAKARAN NAIR., PIN - 679573
32 THE KALADY GRAMA PANCHAYATH SERVICE CO-OPERATIVE
BANK LTD,
NO.M783 PARAPPURAM KADANCHERY P.O, PIN-679 572
MALAPPURAM DISTRICT REPRESENTED BY ITS PRESIDENT,
E.P.CHANRAMOHANDAS, S/O.KRISHNAN NAIR, PIN -
679572
33 THE PUNNAPPALA SERVICE CO-OPERATIVE BANK LTD,
NO.F 928 MADUVATH P.O, PIN-679 328,
MALAPPURAM DISTRICT, REPRESENTED BY ITS
PRESIDENT, K.P.BHASKARAN, S/O.KARUPPAN., PIN -
679573
34 THE PULAMANTHOLE SERVICE CO-OPERATIVE BANK
LTD.NO.F 1565 PULANTHOLE P.O,
PIN-679 323, MALAPPURAM DISTRICT REPRESENTED BY
ITS PRESIDENT , SANDEEP LALP.M, S/O.VASUDEVAN
NAMBOOTHIRI, PIN - 679323
35 THE KURUVAMBALAM SERVICE CO-OPERATIVE BANK
LTD.NO.F 1523 P.O, KODUR,
PIN-676 504, MALAPPURAM DISTRICT REPRESENTED BY
ITS PRESIDENT V.P.ANIL KUMAR, S/O.KUNJIKUTTAN.,
PIN - 676504
36 THE KODUR SERVICE CO-OPERATIVE BANK LTD NO. F
1523
KODUR P.O, MALAPPURAM DISTRICT REPRESENTED BY ITS
PRESIDENT V.P. ANIL KUMAR, S/O
KUNJIKUTTAN( ADDITIONAL R8 TO R36 ARE IMPLEADED
AS PER ORDER DATED 11.08.2023 IN IA 3/2023), PIN
- 676504
BY ADVS.SUMATHY DANDAPANI (SR.)(S-712)
Millu Dandapani
ATHUL SHAJI
ADVOCATE GENERAL -SRI.K.GOPALAKRISHNA KURUP
SHRI.P.P.THAJUDEEN SPL. G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
06.02.2024, ALONG WITH WA.1957/2023, 1975/2023, 1977/2023 &
2114/2023, THE COURT ON 29.2.2024 DELIVERED THE FOLLOWING:
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
18
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
THURSDAY, THE 29TH DAY OF FEBRUARY 2024 / 10TH PHALGUNA, 1945
WA NO. 1975 OF 2023
AGAINST THE JUDGMENT DATED 27.10.2023 IN WP(C) NO.173 OF
2023 OF HIGH COURT OF KERALA
APPELLANTS:
1 U.A.LATHIF MLA
AGED 72 YEARS
PRESIDENT, THE MALAPPURAM DISTRICT CO-OPERATIVE
BANK LTD. NO. 4329, HEAD OFFICE, P.B. NO. 8,
MALAPPURAM, PIN - 676505
2 P.T. AJAY MOHAN
AGED 57 YEARS
S/O. P.T. MOHANAKRISHNAN, VICE PRESIDENT, THE
MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD. NO.
4329, HEAD OFFICE, P.B. NO. 8, MALAPPURAM., PIN -
676505
BY ADVS.GEORGE POONTHOTTAM (SR.)
A.L.NAVANEETH KRISHNAN
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
DEPARTMENT OF CO-OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
D.P.I. JUNCTION, JAWAHAR SAHAKARANA BHAVAN,
THIRUVANANTHAPURAM, PIN - 695014
3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE JOINT REGISTRAR OF CO- OPERATIVE
SOCIETIES (GENERAL), CIVIL STATION ROAD, UP HILL,
MALAPPURAM DISTRICT., PIN - 673505
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
19
4 THE RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, C-7, 18TH FLOOR, SHAHID
BHAGATH SINGH MARG, FORT, MUMBAI, REPRESENTED BY
THE GOVERNOR., PIN - 400001
5 GOVERNMENT OF INDIA
REPRESENTED BY THE SECRETARY, MINISTRY OF CO-
OPERATION, ATAL AKSHAY URJA BHAWAN, CGO COMPLEX,
LODHI ROAD, BEHIND NIA BUILDING, NEW DELHI., PIN
- 110003
6 THE CHAIRMAN
NATIONAL BANK FOR AGRICULTURAL AND RURAL
DEVELOPMENT, (NABARD), CENTRAL OFFICE, BANDRA
KURLA COMPLEX, BKC ROAD, BANDRA, MUMBAI, PIN -
400051
BY ADVS.
ADVOCATE GENERAL -SRI.K.GOPALAKRISHNA KURUP
SHRI.P.P.THAJUDEEN SPL. G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
06.02.2024, ALONG WITH WA.1957/2023, 1962/2023, 1977/2023 &
2114/2023, THE COURT ON 29.2.2024 DELIVERED THE FOLLOWING:
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
20
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
THURSDAY, THE 29TH DAY OF FEBRUARY 2024 / 10TH PHALGUNA, 1945
WA NO. 1977 OF 2023
AGAINST THE JUDGMENT DATED 27.10.2023 IN WP(C) NO.28650 OF
2021 OF HIGH COURT OF KERALA
APPELLANTS:
1 U.A.LATHIF MLA
AGED 71 YEARS
PRESIDENT , THE MALAPPURAM DISTRICT CO-OPERATIVE
BANK LTD NO.4329, HEAD OFFICE, P B NO.8,
MALAPPURAM-676505., PIN - 676505
2 P T AJAY MOHAN
AGED 57 YEARS
S/O P T MOHANAKRISHNAN, VICE PRESIDENT, THE
MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD
NO.4329, HEAD OFFICE, P B NO.8, MALAPPURAM-
676505, PIN - 676505
BY ADVS.GEORGE POONTHOTTAM (SR.)
NISHA GEORGE
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
DEPARTMENT OF CO-OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM-692001., PIN -
695001
2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
D P I JUNCTION, JAWAHAR SAHAKARANA BHAVAN,
THIRUVANANTHAPURAM-695014., PIN - 695014
3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE JOINT REGISTRAR OF CO-OPERATIVE
SOCIETIES (GENERAL), CIVIL STATION ROAD, UP HILL,
MALAPPURAM DISTRICT, PIN-673505., PIN - 673505
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
21
4 THE RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, C-7, 18TH FLOOR, SHAHID
BHAGATH SINGH MARG, FORT, MUMBAI-400001,
REPRESENTED BY THE GOVERNOR., PIN - 400001
BY ADVS.
ADVOCATE GENERAL -SRI.K.GOPALAKRISHNA KURUP
SHRI.P.P.THAJUDEEN SPL. G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
06.02.2024, ALONG WITH WA.1957/2023, 1962/2023, 1975/2023 &
2114/2023, THE COURT ON 29.2.2024 DELIVERED THE FOLLOWING:
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
22
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MRS. JUSTICE C.S. SUDHA
THURSDAY, THE 29TH DAY OF FEBRUARY 2024 / 10TH PHALGUNA, 1945
WA NO. 2114 OF 2023
AGAINST THE JUDGMENT DATED 27.10.2023 IN WP(C) NO.4215 OF
2023 OF HIGH COURT OF KERALA
APPELLANTS/RESPONDENTS 4 & 5:
1 THE RESERVE BANK OF INDIA
CENTRAL OFFICE BUILDING, C-7, 18TH FLOOR, SHAHID
BHAGATH SINGH MARG, FORT, MUMBAI - 400001,
REPRESENTED BY THE GOVERNOR, PIN - 400001
2 THE REGIONAL DIRECTOR
THE RESERVE BANK OF INDIA BAKERY JUNCTION,
P.B NO.6507, THIRUVANANTHAPURAM - 695 033.
BY ADVS.E.K.NANDAKUMAR (SR.)(N-23)
M.GOPIKRISHNAN NAMBIAR
K.JOHN MATHAI
JOSON MANAVALAN
KURYAN THOMAS
PAULOSE C. ABRAHAM
RAJA KANNAN
AKHILA NAMBIAR
RESPONDENTS/PETITIONERS & RESPONDENTS 1, 2,3 AND 6 TO 36:
1 U.A.LATHIF MLA
AGED 71 YEARS
FORMER PRESIDENT, THE MALAPPURAM DISTRICT CO-
OPERATIVE BANK LTD. NO. 4329 AND DELEGATE,
MANJERI URBAN CO-OPERATIVE BANK, MANJERI,
MALAPPURAM DISTRICT, PIN - 676121
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
23
2 P.T. AJAY MOHAN
AGED 56 YEARS
FORMER VICE PRESIDENT, THE MALAPPURAM DISTRICT
CO-OPERATIVE BANK LTD. NO. 4329 AND DELEGATE,
ANDATHODE SERVICE CO-OPERATIVE BANK, ANDATHODE,
MALAPPURAM DISTRICT, PIN - 679564
3 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO GOVERNMENT,
DEPARTMENT OF CO-OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM-, PIN - 682031
4 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
D.P.I. JUNCTION, JAWAHAR SAHAKARANA BHAVAN,
THIRUVANANTHAPURAM, PIN - 695014
5 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE JOINT REGISTRAR OF CO- OPERATIVE
SOCIETIES (GENERAL), CIVIL STATION ROAD, UP HILL,
MALAPPURAM DISTRICT, PIN - 673505
6 MALAPPURAM DISTRICT CO-OPERATIVE BANK LTD.
RE-NAMED AS 'KERALA BANK', PB NO 6515, COBANK
TOWERS, PALAYAM, THIRUVANANTHAPURAM - 695 033,
REPRESENTED BY THE MANAGING DIRECTOR, PIN -
695033
7 KERALA BANK EMPLOYEES FEDERATION(KBEF)
MALAPPURAM DISTRICT COMMITTEE, DILEEP MUKHARJEE
BHAVAN ,MALAPPURAM P.O.MALAPPURAM. REPRESENTED BY
ITS SECRETARY IS IMPLEADED AS ADDITIONAL R7 VIDE
ORDER DATED 04/07/2023 IN IA 2/2023., PIN -
676504
8 GOVINDA PRASAD P.
AGED 50 YEARS
S/O.NARAYANAN, PRESIDENT, ELAMKULAM SERVICE CO-
OPERATIVE BANK LTD. NO.F1536, ELAMKULAM, PIN-678
340, MALAPPURAM DISTRICT, RESIDING AT PADINHARE
PUZHIKKUTH, KUNNAKKAV P.O, MALAPPURAM DISTRICT.,
PIN - 678340
9 THE THIRUNAVAYA SERVICE CO-OPERATIVE BANK
LTD.NO.1910 THIRUNAVAYA,
MALAPPURAM DISTRICT, PIN-676 301 RESIDING AT
KALPAKAMCHERRY HOUSE P.O, ALATHIYUR, MALAPPURAM
DISTRICT REPRESENTED BY SECRETARY SURESH K.M,
S/0.PARANGODAN NAIR., PIN - 676301
10 THE TRIPANGODE SERVICE CO-OPERATIVE BANK
LTD.NO.1890 TRIPANGODE,
MALAPPURAM DISTRICT, PIN-676 301, RESIDING AT
KARATHAPARATHOTTATHIL HOUSE P.O, ALATHOOR,
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
24
IIRUR-2, MALAPPURAM DISTRICT REPRESENTED BY
PRESIDENT, K.T. VELAYUDHAN, S/O.KRISHNAN NAIR.,
PIN - 676301
11 THE PURATHUR SERVICE CO-OPERATIVE BANK
LTD.NO.D1902 PURATHUR,
MALAPPURAM DISTRICT, PIN-676 108 REPRESENTED BY
ITS SECRETARY, MALLIKKA, D/O.KUNHJALIKKAN.,
PIN - 676108
12 THE KURVAMBALAN SERVICE CO-OPERATIVE BANK
LTD.NO.F1638 KURUVAMBALAM,
MALAPPURAM DISTRICT, PIN-679 338, REPRESENTED BY
ITS PRESIDENT, M.B.RAJESH, S/O.M.B.BHASKARAN
NAIR., PIN - 679338
13 THE WANDOOR SERVICE CO-OPERATIVE BANK
LTD.NO.M387,
WANDOOR, MALAPPURAM DISTRICT, PIN-679 328
REPRESENTED BY ITS PRESIDENT, K.T.MUHAMMADALI,
S/O.MUHAMMAD., PIN - 679328
14 THE OZHUR SERVICE CO-OPERATIVE BANK LTD. OZHUR,
MALAPPURAM DISTRICT, PIN-676 307, REPRESENTED BY
ITS PRESIDENT, K.T.SREENIVAS BABU, S/O.
JANARDHANA MENON K., PIN - 676307
15 THE NIRAMARUTHUR SERVICE CO-OPERATIVE BANK LTD.
M 612, P.O.NIRAMARUTHUR PIN-679 104, MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT, IBRAHIM
K.P, S/O.MUHAMMAD., PIN - 679104
16 THE MARAKKARA SERVICE CO-OPERATIVE BANK LTD,
NO.F.10738 MARAKKARA SERVICE CO-OPERATIVE BANK
LTD.NO.F 10738, MARAKKARA, PIN-676 553 MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT,
K.KRISHNAN, S/O.CHAKKAPPAN, PIN - 676553
17 THE VADAKKUMPURAM SERVICE CO-OPERATIVE BANK
LTD.NO., F1505 VADAKKUMBRAM,
MALAPPURAM DISTRICT, PIN-676 552 REPRESENTED BY
ITS VICE PRESIDENT, MOHANAN P.M, S/O.GOPALAN
NAIR, PIN - 676552
18 THE CHOKKAD SERVICE CO-OPERATIVE BANK
LTD.NO.M602,
P.O.CHOKKAD-679 332, MALAPPURAM DISTRICT
REPRESENTED BY ITS PRESIDENT, P.K.UMMER,
S/O.SULAIMAN., PIN - 679332
19 THE KOLKKALAM SERVICE CO-OPERATIVE BANK LTD,
NO.F 1073 CHENGOTTUR P.O, MALAPPURAM DISTRICT,
PIN-676503 REPRESENTED BY ITS PRESIDENT
K.U.IQBAL, S/O.K.U.UMMER, PIN - 676503
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
25
20 THE PERUMANNA KLARI SERVICE CO-OPERATIVE BANK
LTD.F770 P.O.KUTTIPPALA,
MALAPPURAM DISTRICT, PIN 676501 REPRESENTED BY
ITS PRESIDENT, HARIDASAN KIZHAKKINAKATH.
21 THE VAZHAYOOR SERVICE CO-OPERATIVE BANK LTD,NO.D
1G9G P.O,
AZHINJILAM, PIN-676 632, MALAPPURAM DISTRICT
REPRESENTED BY ITS PRESIDENT, K.SUBRAMANIAN
MASTER, S/O. VERAYUDHAN K.
22 THE CHEMBRASSERI SERVICE CO-OPERATIVE BANK
LTD.NO.9151 CHEMBRASSERI,
MALAPPURAM DISTRICT, PIN-67652, REPRESENTED BY
ITS PRESIDENT, SANKARAN.
23 THE AREACODE SERVICE CO-OPERATIVE BANK LTD.NO.F
1571 AREACODE,
MALAPPURAM DISTRICT, PIN-673 639 REPRESENTED BY
ITS PRESIDENT, NASAR, S/.MAMMAD.
24 THE MUTHUVALLUR SERVICE CO-OPERATIVE BANK
LTD.NO.MG39
VILAYIL P.O, PIN-673 641, MALAPPURAM DISTRICT
REPESENTED BY ITS PRESIDENT, ANILKUMAR K,
S/O.K.DHAMODHARAN NAIR.
25 THE PONNANI SERVICE CO-OPERATIVE BANK LTD.NO.4841
PONNANI P.O,
MALAPPURAM DISTRICT, PIN-679 577 REPRESENTED BY
ITS PRESIDENT, T.P.UMMER, S/O.KUNHIBAVA.
26 THE KEEZHUPARMBA SERVICE CO-OPERATIVE BANK
LTD.NO.M 396 KEEZHUPARAMBA,
P.O, VALILLAPUZHA, MALAPPURAM DISTRICT, PIN-679
577, REPRESENTED BY ITS PRESIDENT, K.V.MUNEER,
S/O.ALI., PIN - 679577
27 THE PORUR SERVICE CO-OPERATIVE BANK L;TD.NO.M357
P.O,
CHATHANGOTTUPURAM, PIN-679 325 MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT,
U.C.NANDAKUMAR, S/O.VASUDEVAN NAMBOOTHIRI.
28 THE URANGATTIRI SERVICE CO-OPERATIVE BANK
LTD.NO.6895
THERATTAMMAL, P.O.URANGATTIRI MALAPPURAM
DISTRICT, PIN-673 639 REPRESENTED BY ITS
PRESIDENT, K.M.KURIAKOSE, S/O.MATHAYI.
29 THE EDAPAL REGIONAL SERVICE CO-OPERATIVE BANK
LTD.NO.P515, EDAPAL, PIN-679 576, MALAPPURAM
DISTRICT REPRESENTED BY ITS PRESIDENT,
P.P.MOHANDAS, S/O.ACHUNNI.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
26
30 THE ARIYALLUR SERVICE CO-OPERATIVE BANK
LTD.NO.F7730 H.O
ARIYALLUR, PIN-676312, MALAPPURAM DISTRICT,
REPRESENTED BY ITS PRESIDENT, C.M.ARUMUGHAN,
S/O.THEYYUTTI
31 THE THAVANUR SERVICE CO-OPERATIVE BANK LTD NO.P
516
THAVANUR, MALAPPURAM DISTRICT, PIN-679 573
REPRESENTED BY ITS PRESIDENT JYOTHI, D/O.
PRABHAKARAN NAIR.
32 THE KALADY GRAMA PANCHAYATH SERVICE CO-OPERATIVE
BANK LTD,
NO.M783 PARAPPURAM KADANCHERY P.O, PIN-679 572
MALAPPURAM DISTRICT REPRESENTED BY ITS PRESIDENT,
E.P.CHANRAMOHANDAS, S/O.KRISHNAN NAIR.
33 THE PUNNAPPALA SERVICE CO-OPERATIVE BANK LTD,
NO.F 928 MADUVATH P.O, PIN-679 328,
MALAPPURAM DISTRICT, REPRESENTED BY ITS
PRESIDENT, K.P.BHASKARAN, S/O.KARUPPAN.
34 THE PULAMANTHOLE SERVICE CO-OPERATIVE BANK
LTD.NO.F 1565 PULANTHOLE P.O,
PIN-679 323, MALAPPURAM DISTRICT REPRESENTED BY
ITS PRESIDENT , SANDEEP LALP.M, S/O.VASUDEVAN
NAMBOOTHIRI.
35 THE KURUVAMBALAM SERVICE CO-OPERATIVE BANK
LTD.NO.F 1523 P.O, KODUR,
PIN-676 504, MALAPPURAM DISTRICT REPRESENTED BY
ITS PRESIDENT V.P.ANIL KUMAR, S/O.KUNJIKUTTAN.
36 THE KODUR SERVICE CO-OPERATIVE
BANK LTD NO. F 1523
KODUR P.O, MALAPPURAM DISTRICT, PIN - 676504
REPRESENTED BY ITS PRESIDENT V.P. ANIL KUMAR, S/O
KUNJIKUTTAN( ADDITIONAL R8 TO R36 ARE IMPLEADED
AS PER ORDER DATED 11.08.2023 IN IA 3/2023)
BY ADVS.
ADVOCATE GENERAL -SRI.K.GOPALAKRISHNA KURUP
SHRI.P.P.THAJUDEEN SPL. G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
06.02.2024, ALONG WITH WA.1957/2023, 1962/2023, 1975/2023 &
1977/2023, THE COURT ON 29.2.2024 DELIVERED THE FOLLOWING:
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
27
AMIT RAWAL & C.S. SUDHA, JJ.
----------------------------------------------------------------
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
----------------------------------------------------------------
Dated this the 29th day of February, 2024
JUDGMENT
Amit Rawal , J .
The question involved in all the intra-court appeals
preferred against the common judgment rendered in four
writ petitions preferred by former President, Vice President
of erstwhile Malappuram District Co-operative Bank and 93
individuals stated to be the Presidents of Primary
Agricultural Credit Societies and Urban Co-operative Banks
whereby all the petitioners were not successful in laying
challenge to the constitutional validity of Section 14A of
Kerala Co-operative Societies Act, 1969 (hereinafter called
as 'Act, 1969'), Section 74H(1)(a) of the Act, 1969 and order
passed by the Registrar, Co-operative Societies dated 12 th of
January, 2023 ordering amalgamation of Malappuram
District Co-operative Bank with Kerala State Co-operative
Bank.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
2. The arguments raised in all the afore-mentioned
writ petitions, which have been extensively dealt with by the
Single Judge, were with regard to the Entry Nos.43, 45 of
List-I and 32 of List-II of the 7th Schedule of the Constitution
of India as well as amended provisions of Section 44A of the
Indian Banking Regulation Act, 1949 effective from 26 th of
June, 2020. In other words, the pith and substance of the
claim in the writ petitions was State Government by causing
an amendment in Section 74H(1)(a) could not confer power
on the Registrar, in the absence of the resolution either by
simple majority or by ¾th majority as it was then in vogue,
i.e., before amendment can order the amalgamation of the
District Co-operative Society into State Co-operative.
3. The other question was since one of the functions
of the District Co-operative Bank was 'Banking',
amalgamation of banking company would be within the
domain of Central legislation and not by the State.
4. Whether in the absence of consultation with the
RBI, amalgamation as provided under Section 44A of the
1949 Act effective from 26.6.2020 providing ¾ th majority
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
could have been done away with by the State legislation.
5. All these questions raised in the writ petitions
have been answered against the appellants/petitioners.
6. There were fourteen (14) district co-operative
societies in the State of Kerala. The provisions of the Kerala
Co-operative Societies Act, 1969, initially, envisaged
amalgamation of the District Co-operative into State Co-
operative by way of ¾th majority but later by simple majority
and finally in the absence of the resolution either by simple
or otherwise Registrar could order for amalgamation. The
said amendment was caused by inserting Section 74(1)(a) of
1969 Act with effect from 11th of April, 2020 for the purpose
of de-layering.
7. All the thirteen (13) Co-operative Societies had
agreed to pass resolution and for the purpose of
amalgamation/merging with the State Government except
the Society in question, i.e., the Malappuram Co-operative
Society.
8. The genesis of the arguments on behalf of the
learned senior counsels representing the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
appellants/petitioners before the Single Bench and this Court
are summarised hereinbelow:-
(i) Merger/amalgamation of Co-operative Society under
the 1969 Act was provided under Section 14 and Rule 13 of
the 1969 Act and the Rules framed thereunder.
In the year 2019 amendment was caused by inserting
Section 14A providing a distinct procedure for the purpose of
merger by requiring a simple majority by deleting the
provisions of ¾th for the purpose of amalgamation/merger
with Kerala State Co-operative Bank.
(ii) Two general body meetings of the Malappuram District
Co-operative Society, after the incorporation of Section 14A
of the Act, 1969, were held and the proposal for merger was
defeated by 2/3rd and even simple majority.
(iii) Chapter X(C) was incorporated in the Act, 1969 and
Section 74H(1)(a) provided a different procedure for merger
of District Co-operative Bank with State (Kerala) Co-
operative Bank empowering the Registrar to merge the
District Co-operative with the State Co-operative, in the
absence of resolution.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
(iv) Malappuram District Co-operative Society is covered
under the provisions of Deposit Insurance and Credit
Guarantee Corporation Act, 1961 (hereinafter called as 'the
DICGC Act') which extended a protection and guarantee to
the depositors. The merger/amalgamation and winding up or
re-construction of the arrangement of an insured Co-
operative would only be made by previous sanction in
writing of the Reserve Bank of India.
9. On the other hand, the stand of the State
supporting the amendment has been as under:-
(i) Section 74(1)(a) applies to insurance co-operative
bank which would mean a bank insured under the DICGC
Act. The condition under the DICGC Act was in respect of a
insured bank with any other bank or entity with the sanction
in writing of the RBI. In the absence of any permission from
the RBI the only adverse consequence would be the bank
may lose the status of insured Co-operative, nothing
beyond.
(ii) The petitioners had no locus standi to file the writ
petitions as they have no case by looking at the memo of
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
parties and also in the absence of any authorisation.
(iii) Entry No.43 of List-I of seventh schedule relates
to trading corporations, including 'banking', insurance and
financial corporations, but excludes 'Co-operative Societies'.
Though 'Banking' is exclusively in List-I subject under Entry
45 of List-I, the power to make law regarding incorporation,
regulation and winding up of Co-operative Societies would
be within the competence of State Legislature under Entry
No.32 of List-II. The Entries in the Seventh Schedule are not
the power but fields of Legislation.
10. While impugning the vires of an enactment there
is a presumption of its constitutionality and if there is any
difficulty in ascertaining the limits of legislative power, the
difficulty must be resolved as far as possible in favour of the
legislature by adopting a liberal construction.
Constitutional validity of Section 14A and Section 74H(1)(a)
had already been upheld in Abdurahiman.P. and others v.
State of Kerala and others [2020 (1) KHC 507] wherein
all the contentions raised by the appellants/petitioners had
been repelled.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
11. The amendments under challenge were preceded
by various ordinances as the matter could not be placed
before the Legislature owing to the difficulties during the
Covid-19 pandemic.
12. Amendments were challenged at the ordinance
stage through Writ Petition No.33596 of 2019 and connected
cases. This Court vide judgment dated 28 th of April, 2021 in
Writ Petition No.33596 of 2019 and connected cases had
repelled the challenge to the constitutional validity of the
ordinance. The matter was taken up before the Division
Bench through Writ Appeal No.708 of 2021 and connected
appeals. Writ Appeals were disposed of by common
judgment dated 22nd of May, 2022, leaving it open to the
appellants to challenge the provisions of the amending Act
as the ordinance which was under challenge by that time
had been replaced by amending Act.
13. Supreme Court in Jayant Verma and others v.
Union of India and others [(2018) 4 SCC 743] while
dealing with the proposition regarding the provisions of the
Banking Regulation Act, 1949 to the extent it encroaches
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
into the fields exclusively reserved to the State Legislature
in List-II, held that it would not be operative. The Entries 43
and 45 of List-I would not be applicable to the 'Banking co-
operative societies'.
14. As regards the expression 'consultation' with
Reserve Bank of India in support of the contention raised by
the learned Advocate General reliance was laid to the ratio
as culled out in the judgment of the Supreme Court in Ram
Tawakya Singh v. State of Bihar and others [(2013) 16
SCC 206]. In the said judgment while dealing with the
expression 'consultation' it was held that there must be
conference of two or more minds or impact of two or more
minds in respect of a topic/subject.
15. Counsel representing the Co-operative Society
also adopted the arguments submitted by Advocate General.
16. Smt.Sumathi Dandapani, learned Senior Counsel
assisted by Sri.Vishnu Sharesh on behalf of the Reserve
Bank of India by relying upon the counter affidavit filed in
Writ Petition No.4215 of 2023 contended that though RBI
vide letter dated 3rd of October, 2018 had granted in-
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
principle approval of amalgamation of District Co-operative
Banks with the State Co-operative Bank which were both
licensed under the Banking Regulation Act, 1949, therefore
any order of amalgamation of the Malappuram District Co-
operative Bank with the State Co-operative Bank could have
only been in accordance with the provisions of the Banking
Regulation Act, 1949 (hereinafter called as 'Act, 1949'). The
merger and amalgamation of a District Co-operative Bank
with the State Co-operative Bank have to be sanctioned by
the Reserve Bank of India in terms of the provisions
contained in Section 44A read with Section 56 of the Act,
1949.
17. Registrar of the Co-operative Society even after
incorporation of Section 74H(1)(a) had sought the approval
of the RBI for merger of Malappuram District Co-operative
Bank with State Co-operative Bank.
18. In rebuttal counsel representing the appellants in
support of the contentions relied upon following case law:
Pandurang Ganpati Chaugule v. Vishwasrao Patil
Murgud Sahakari Bank Limited [(2020) 9 SCC 215] to
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
contend that the power to regulate the incorporation,
winding up of the Co-operative Society though vests with
the State Legislature in terms of Entry No.32 of List-II of the
Seventh Schedule of the Constitution of India, but when such
Co-operative Society engages in a banking activity, any
order regarding its winding up, amalgamation including
division or re-organization can only be made with the
permission in writing of RBI strictly as per provisions of
Section 44A of the Act, 1949 which is amended with effect
from 26th of June, 2020.
19. The order of the Registrar ordering the
amalgamation did not notice the afore-mentioned case law
but was swayed away with the amendment caused by the
State Legislation.
20. Thalappalam Service Co-operative Bank
Limited and others v. State of Kerala and others
[(2013) 16 SCC 82] - dealt with maintainability of the writ
petition against the Co-operative Society as per the
provisions of Article 12 of the Constitution of India. It was
contended that the State has no say to the function of the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
Society dealing with banking.
21. Reserve Bank of India has also filed intra-court
appeal bearing W.A.No.2114 of 2023 against the judgment
of the Single Bench by seeking leave assailing inter alia on
the following points:-
(I) Vide 2021 Amendment, Section 74H(1)(a) of the
Act, 1969 provided for amalgamation of District Co-
operative Banks with Kerala State Co-operative Bank was
amended by Act No.34 of 2021 and Section 74H(1)(a) was
inserted which vested with the Registrar, a power, to order
merger of a District Co-operative Bank with Kerala State Co-
operative Bank in the event of general body of District Co-
operative Bank do not pass resolution as specified under
Section 14A of the Act, 1969. The said amendment went
against the principle of decentralization and democratic
administration of Co-operative Societies.
(II) Banking is exclusively a subject in List-I of the
seventh schedule of the Constitution of India. Therefore the
State Legislature was denuded of the power to make
provisions for amalgamation of a Co-operative Bank with
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
another Co-operative Bank.
(III) Malappuram District Co-operative Society is an
insured Co-operative Bank as defined under Section 2(i) of
DICGC Act and thus guaranteed its depositors a protection in
respect of the deposits maintained with them. The
protection will extend to a bank only if the incorporating law,
i.e., the KCS Act contains a provision of 'eligible co-operative
bank' as defined in Section 2(gg) of DICGC Act.
(IV) 'Reserve Bank of India (Guidelines)' on
'amalgamation of Districts Central Co-operative Banks with
State Co-operative Banks' dated 24 th of May, 2021 provides
that the Reserve Bank of India will consider proposals for
amalgamation if the scheme of amalgamation is approved
by requisite majority of shareholders in accordance with the
provisions of Section 44A read with Section 56 of the BR Act,
1949. Though the Bank did not have any objection for
amalgamation as per the counter affidavit filed in the writ
petitions but later on amendment was caused under Section
44A on 26.6.2020 providing an amalgamation of banking co-
operative by 2/3rd of majority. Thus, in this view of the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
matter, the amendment caused by the State under Section
74H(1)(a) cannot be put into force as has been done by the
impugned order of the Registrar. In support of the contention
relied upon following case law:- M/s.Fatehchand
Himmatlal and others v. State of Maharashtra [(1977)
2 SCC 670] and various other judgments on similar
proposition. Paragraphs 56, 62 and 63 of M/s.Fatehchand
(supra) read as under:-
"56. Let us look at the basics of the legal situation
before us, before examining the wealth of learning
counsel has accumulated. Article 246 vests exclusive
power in Parliament over matters enumerated in List I
(Seventh Schedule) and the State Legislature enjoys
like power over topics in List II, subject to clauses (1)
and (2) of the Article. Plainly, therefore, the State can
legislate upon any Entry in the State List. We may
visualize situations where Parliamentary occupation
may exclude the State Legislature. Where, for instance,
Parliament while enacting on a matter in the Union List,
makes as it is entitled to make, necessary incidental
provisions to effectuate the principal legislation, such
ancillary expansions may trench upon the State field in
List II. In such a case, if the State makes a law on an
Entry in its exclusive List, and such law covers and runs
counter to what has already been occupied by
Parliament, through incidental provisions, it may be
argued that the State law stands pushed out on account
of the superior potency of Parliament's power in our
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
constitutional scheme. Again, there are certain tell-tale
heads of legislation in the Lists where one may plausibly
invoke the doctrine of occupied field. Examples may,
perhaps, be furnished by Entries 52 and 54 of List I,
Entries 23 and 24 of List II and Entry 33 of List III.
Without fear of contradiction, we may assert that Art.
246(3) read with Entry 30 in List II, empowers the State
to make the impugned law. Why then is it incompetent?
Because, says Mr. Nariman, the field of gold industry is
already occupied by Parliament and the State
Legislature therefore stands excluded. Entry 52 in List I
reads:
"Industries, the control of which by the Union is
declared by Parliament by law to be expedient in the
public interest."
Parliament, in the Industries (Development and
Regulation) Act, 1951 (Act 65 of 1951) has made the
necessary declaration contemplated in Entry 52 and
has occupied the field of 'gold industry', as is evident
from reading Section 2 and item 1.B(2) of the First
Schedule therein. This expression of Parliamentary
intent to legislate upon the gold industry is enough to
expel from that field the State Legislature. This is Shri
Nariman's contention. But what is the sequitur ?
Assuming the approprlation by Parliament of the power
to legislate on gold, what follows? It can make laws
directly on that industry and ancillarily on every allied
area where effective exercise of the parliamentary
power necessitates it. So much so, 'business in gold',
licensing of gold merchants, regulation of making or
pledging of gold ornaments, keeping of jewellery,
disclosure of gold possessions and the like are
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
incidental to the parliamentary power and purpose and
the Gold Control Act, 1968 and the Rules made
thereunder are valid (vide, for example, Bantha's Case:
(1970) 1 SCR 479). Several sections of the Act, some
rules and a few rulings were read before us to drive
home the point that gold loans are already within the
ken of the law made under Entry 52, List I. If so, what ?
Does it spell death sentence on the Debt Act? Or maim
it ? Or leave it intact ?
xxx xxx xxx
62. In the Canadian Constitution, the question of
conflict and coincidence in the domain in which
provincial and dominion legislation overlap has been
considered. If both may overlap and co-exist without
conflict, neither legislation is ultra vires. But if there is
confrontation and conflict the question of paramountcy
and occupied field may crop up. It has been held that
the rule as to predominance of dominion legislation
can only be invoked in case of absolutely conflicting
legislation in pari materia when it will be an
impossibility to give effect to both the dominion and
provincial enactments. There must be a real conflict
between the two Acts i.e. the two enactments must
come into collision. The doctrine of Dominion
paramountcy does not operate merely because the
Dominion has legislated on the same subject matter.
The doctrine of 'occupied field' applies only where
there is a clash between Dominion Legislation and
Provincial Legislation within an area common to both.
Where both can co-exist peacefully, both reap their
respective harvests (Please see; Canadian
Constitutional Law by Laskin--pp. 52-54, 1951 Edn).
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
63. We may sum up the legal position to the extent
necessary for our case. Where Parliament has made a
law under Entry 52 of List I and in the course of it
framed incidental provisions affecting gold loans and
money-lending business involving gold ornaments, the
State, making a law on a different topic but covering
in part the same area of 'gold loans', must not go into
irreconcilable conflicts. Of course, if Art.254(2) can be
invoked--We will presently examine it--then the State
law may still prevail since the assent of the President
has been obtained for the Debt Act. Thirdly, the
doctrine of 'occupied field' does not totally deprive the
State Legislature from making any law incidentally
referable to gold. In the event of a plain conflict, the
State law must step down unless, as pointed out
earlier in the previous passage, Art.254(2) comes to
the rescue."
22. We have heard learned counsel for the parties and
appraised the paper book.
23. It would be expedient to extract the provisions of
Entry 43, Entry 45 and Entry 32 in tabular form as has been
done by the Single Bench, the same reads as under:-
Entry 43, List-I (Union Incorporation, regulation and winding up of trading
List) corporations, including banking, insurance and financial
corporations, but not including co-operative societies.
Entry 45, List-I (Union Banking
List)
Entry 32, List-II (State Incorporation, regulation and winding up of corporations,
List) other than those specified in List I, and universities;
unincorporated trading, literary, scientific, religious and
other societies and associations, co-operative societies.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
24. Article 43B of the Constitution of India inserted by
ninety-seventh amendment Act, 2011 with effect from 15 th
of February, 2012 envisages that the State shall endeavour
to promote voluntary formation, autonomous functioning,
democratic control and professional management of co-
operative societies.
25. In Jayant Verma and others (supra) as per the
facts revealed constitutional validity of Section 21A of the
Banking Regulation Act, 1949 was assailed by public interest
litigation under Article 32 of the Constitution of India
envisaging that the rate of interest charged by the banking
company would not be subject to scrutiny by courts. While
dealing with such question raised in paragraphs 12, 13, 16,
40, 41 and 44 of judgment it has been observed by noticing
provisions of Article 246 as well as the judgments cited by
Mr.E.K.Nandakumar, learned Senior Counsel appearing on
behalf of the RBI in W.A.No.2114 of 2023 that it is a common
parlance to state that the "Legislative Heads" must receive
large and liberal meaning and the sweep of the sense of the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
rubrics must embrace the widest range. Banking Regulation
Act deals with the subject 'banking' insofar as it licenses
banking companies, as defined, and co-operative banks, to
ensure proper regulation and nothing beyond. It is also
noticed that if it is found that the Legislature as a whole is
referable to Entry in List-I but it incidentally encroached
upon an Entry in List-II there will be no reason for the
doctrine of unoccupied field not to apply to federal
legislation. The principle contained in Article 246, should be
taken as a last resort in case of failure of harmonious
construction, i.e., the entries qua in competing lists, i.e.,
once the legislation is referable to one list or the other, the
doctrine of incidental trenching and unoccupied field would
apply equally to both Parliamentary and State legislation.
The Court must ascertain a true nature and character of
challenged enactment, its 'pith and substance' and not the
'form' alone. Where there has been an endeavour to give
pre-eminence to the Central Legislature in cases of a conflict
of powers, it is obvious that, in some cases where such
conflict exists, the Legislature could not have intended that
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
power exclusively assigned to the Provincial Legislature and
should be absorbed in those given to the Central Legislature
and in the penultimate paragraph 61 it was held as under:-
"61. We declare Section 21A of the Banking Regulation Act to
be valid as it is part of an enactment which, in pith and
substance, is relatable to Schedule VII List I Entry 45 to the
Constitution. However, insofar as Section 21A incidentally
encroaches upon the field of relief of agricultural
indebtedness, set out in List II Entry 30 it will not operate
only in States where there is a State Debt Relief Act which
deals with the subject matter of relief of agricultural
indebtedness, where the State Debt Relief Act covers debts
due to "banks", as defined in those Acts. In States where the
State Debt Relief Act does not apply to banks at all, or
applies only to certain specified banks, Section 21A will, in
the former situation, apply in such States, and, in the latter
situation, apply only in respect of loans made to
agriculturists where such loans are given by banks other
than the banks specified or covered by the State Debt Relief
Act concerned, as the case may be."
From the analysis of the conclusion arrived at in the
judgment cited (supra), it is clear that, if on causing of the
amendment incidentally encroaches upon the relief of
agricultural indebtedness, set out in List II of Entry 30, it will
not operate only in State where there is a State Debt Relief
Act which deals with the subject matter of relief of
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
agricultural indebtedness, which also covers debt due to
"banks". But in State where the State Debt Relief Act does
not apply to banks at all, or applies only to certain specified
banks, Section 21A will, in the former situation, apply in
such States.
26. In the instant case an amendment was caused in
Section 3 of the Banking Regulation Act, 1949 prior to the
Banking Regulation (Amendment) Act, 2020. In the post
amendment, in order to rule out the ambiguity in respect of
certain Co-operative Societies whose primary object and
principal business was to provide only long term finance it
was made clear that if such society does not use the part of
its name with the bank it will consider to be only Co-
operative Society but if the banking is also incidental and
over and above the other work would exclusively use the
word banking.
27. Sant Sadhu v. State of Punjab [AIR (1970) P &
H 528] was a case where certain provisions of the Punjab
Co-operative Societies (Amendment) Act, 1969 were
challenged on the ground that State Legislative did not have
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
competence to enact any law relating to Banking
Corporations even if they were co-operative societies
constituted under law made by the State Legislature. In
paragraph Nos.8 and 13 of the afore-mentioned judgment
while noticing Entry Nos.43, 45 and 32 of List-I and List-II of
the seventh schedule as has been done in the instant case it
was held that the co-operative society doing the banking
business though are put on par so as far as Entry No.45
List-I is concerned, with other banking institutions, but while
construing Entry No.45, it was observed that, the Entry must
be limited to the laws which affect the conduct of the
business of banks qua banks. Therefore, the co-operative
societies were taken out from the ambit of Entry 43 and put
in Entry No.32 of List-II. The word 'regulation' in Entry No.43
was held to be of a wide import which would also include
how the Co-operative Society would work. In order to give
harmonious construction to both the Entry Nos.43 and 44 it
was held that only business of banking as such falls within
the ambit of Entry No.45; whereas incorporation of the
Corporations matters relating to them would fall within the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
ambit of Entry 43, but, the constitution of the Societies their
working would definitely fall in Entry No.32, List-II and they
were strictly taken out of the purview of Entry No.43.
28. There may be confusion in respect of reading of
the Entries in List-I and List-II and at some time it appears to
be overlapping or may appear to be in direct conflict with
each other. In such situation it is the duty of the Court to
reconcile the entries to bring out a harmonious construction.
If there is a 'general power' in one List and a 'particular
power' in the other List which specific power could also be
included in the general power of the first list then the
general entry in first list must be read so as to 'exclude' the
specific power from it so that the general power may cover
or occupy all the fields 'excepting' the field under second
list.
29. In Pandurang Ganapathi Chaugule (supra) the
judgments rendered by Maharashtra and Andhra Pradesh
High Courts excluding the applicability of SARFAESI Act with
regard to the Societies dealing with banking activity held
that in case Co-operative Societies Act of a particular State
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
deals with incorporation, management and winding up and
incidentally trenches upon banking, it would not take the
legislation beyond the competence of the State Legislature.
For the proper financing and effective functioning of co-
operative societies, there must also be co-operative
societies that do banking business to facilitate the working
of other co-operative societies merely because they do
banking business, they do not cease to be co-operative
societies. (Emphasis supplied). While dealing with all the
entries it was held that the provisions of the SARFAESI Act
would be applied to the co-operative societies dealing with
the banking activity. Thus, what is deducible in paragraphs
87 and 88 in Pandurang Ganapathi (supra) extracted by
the learned Single Judge it is a clear authority on the
proposition that while in all aspects of banking co-operative
societies which are banks would specifically come within the
purview of law made by the Union Parliament with Entry
No.45 of List-I and in all other aspects they would be
controlled and regulated by law made with reference to
Entry No.32 of List-II.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
30. No doubt Section 44A amended in the year 2020
and Section 74H(1)(a) amended later on but made effective
from a back date provided different procedure that would be
applicable for amalgamation. The pith and substance of the
counter affidavit of the RBI is that, it had never opposed to
the amalgamation by the Registrar except that consultation
from it. We cannot lose sight of the fact that amendment of
Section 74H(1)(a) was effective from 11th of April, 2020. To
overcome the confusion and for the purpose of clarity it
would also be an expedient to extract the provisions of
Section 74H(1)(a) of the Co-operative Societies Act and
Section 44A of the Banking Regulation Act. The same read
as under:-
"74H. Amalgamation of District Co-operative Banks to
the Kerala State Co-operative Bank. (1)Notwithstanding
anything contained in this Act or in any other law for the time
being in force, the Registrar shall order the amalgamation of
District Co-operative Banks in Kerala with the Kerala State
Co-operative Bank on the basis of the resolution passed by
the general body as provided under section 14A of this Act.
(a) if the general body of a District Co-operative Bank has not
passed the resolution under section 14A, the Registrar may,
after consulting Reserve Bank of India, order merger of such
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
District Co-operative Bank with Kerala State Co-operative
Bank, on public interest. No order shall be passed under this
clause unless,--
(i) a copy of the proposed order of merger has been sent to
the member society or member societies concerned by
registered post and published the same in two vernacular
dailies having wide circulation in the district in which the
society situates, for their objections or suggestions;
(ii) the Registrar shall consider the objections/suggestions, if
any, received from the society or societies concerned or from
any member or creditor of such society or societies within
such period, being not less than fifteen days from the date of
posting of the proposed order of merger, as may be specified
by the Registrar in this behalf.
"44A. Procedure for amalgamation of banking
companies
(1) Notwithstanding anything contained in any law for the
time being in force no banking company shall be
amalgamated with another banking company, unless a
scheme containing the terms of such amalgamation has
been placed in draft before the shareholders of each of the
banking companies concerned separately, and approved by
the resolution passed by a majority in number representing
two-thirds in value of the shareholders of each of the said
companies, present either in person or by proxy at a
meeting called for the purpose.
(2) Notice of every such meeting as is referred to in sub-
section (1) shall be given to every shareholder of each of the
banking companies concerned in accordance with the
relevant articles of association, indicating the time, place
and object of the meeting, and shall also be published at
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
least once a week for three consecutive weeks in not less
than two newspapers which circulate in the locality or
localities where the registered offices of the banking
companies concerned are situated, one of such newspapers
being in a language commonly understood in the locality or
localities.
(3) Any shareholder, who has voted against the scheme of
amalgamation at the meeting or has given notice in writing
at or prior to the meeting to the company concerned or to
the presiding officer of the meeting that he dissents from
the scheme of amalgamation, shall be entitled, in the event
of the scheme being sanctioned by the Reserve Bank, to
claim from the banking company concerned, in respect of
the shares held by him in that company, their value as
determined by the Reserve Bank when sanctioning the
scheme and such determination by the Reserve Bank as to
the value of the shares to be paid to the dissenting
shareholders shall be final for all purposes.
(4) If the scheme of amalgamation is approved by the
requisite majority of shareholders in accordance with the
provisions of this section, it shall be submitted to the
Reserve Bank for sanction and shall, if sanctioned by the
Reserve Bank by an order in writing passed in this behalf, be
binding on the banking companies concerned and also on all
the shareholders thereof.
xxx
(6) On the sanctioning of a scheme of amalgamation by the
Reserve Bank, the property of the amalgamated banking
company shall, by virtue of the order of sanction, be
transferred to and vest in, and the liabilities of the said
company shall, by virtue of the said order be transferred to,
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
and become the liabilities of the banking company, which
under the scheme of amalgamation is to acquire the
business of the amalgamated banking company, subject in
all cases to [the provisions of the scheme as sanctioned].
[(6A) Where a scheme of amalgamation is sanctioned by the
Reserve Bank under the provisions of this section, the
Reserve Bank may, by a further order in writing, direct that
on such date as may be specified therein the banking
company (hereinafter in this section referred to as the
amalgamated banking company) which by reason of the
amalgamation will cease to function, shall stand dissolved
and any such direction shall take effect notwithstanding
anything to the contrary contained in any other law.
(6B) Where the Reserve Bank directs a dissolution of the
amalgamated banking company, it shall transmit a copy of
the order directing such dissolution to the Registrar before
whom the banking company has been registered and on
receipt of such order the Registrar shall strike off the name
of the company.
(6C) An order under sub-section (4) whether made before or
after the commencement of section 19 of the Banking Laws
(Miscellaneous Provisions) Act, 1963 (55 of 1963) shall be
conclusive evidence that all the requirements of this section
relating to amalgamation have been complied with, and a
copy of the said order certified in writing by an officer of the
Reserve Bank to be true copy of such order and a copy of
the scheme certified in the like manner to be a true copy
thereof shall, in all legal proceedings (whether in appeal or
otherwise and whether instituted before or after the
commencement of the said section 19), be admitted as
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
evidence to the same extent as the original order and the
original scheme]
(7) Nothing in the foregoing provisions of this section shall
affect the power of the Central Government to provide for
the amalgamation of two or more banking companies (xxx)
under section 396 of the Companies Act, 1956 (1 of 1956):
PROVIDED that no such power shall be exercised by the
Central Government except after consultation with the
Reserve Bank."
31. The apprehension of the RBI that, the provisions of
the Banking Regulation Act in view of the finding of the
Single Bench would not be applicable for the amalgamation,
in our considered view, has already been taken care of by
the Single Bench in paragraph 15, the same reads as
under :-
15. The 'rag-bag' theory:- It has to be noted that
by virtue of Entries in List-I, the entire law relating
to banking as well as the entire law relating to
incorporation, regulation and winding up of
Corporations including banking companies except
Co-operative Societies is within the purview of the
competence of the Union Parliament. It is settled
from the decision of the Constitution Bench of the
Supreme Court in Ujagar Prints (II) v. Union of
India, (1989) 3 SCC 488 that a legislative
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
enactment could draw sustenance from two or
more Entries in the same List and legislation need
not be confined to or draw sustenance from a
single entry in any List contained in Seventh
Schedule. It was held:-
"53. If a legislation purporting to be under a
particular legislative entry is assailed for lack of
legislative competence, the State can seek to
support it on the basis of any other entry within the
legislative competence of the legislature. It is not
necessary for the State to show that the legislature,
in enacting the law, consciously applied its mind to
the source of its own competence. Competence to
legislate flows from Articles 245, 246, and the other
articles following, in Part XI of the Constitution. In
defending the validity of a law questioned on
ground of legislative incompetence, the State can
always show that the law was supportable under
any other entry within the competence of the
legislature. Indeed in supporting a legislation
sustenance could be drawn and had from a number
of entries. The legislation could be a composite
legislation drawing upon several entries. Such a
"ragbag" legislation is particularly familiar in
taxation.
54. Bennion in his Statutory Interpretation (at p.
644) refers to such a composite legislation, though
the observations must be understood in the context
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
of the supremacy of the British Parliament and one
of unlimited powers and which is under no
inhibitions, unlike a federal polity, of distribution of
legislative powers. Learned author refers to:
"Ragbag" Acts : Some Acts are "ragbag" Acts,
covering many areas. The annual Finance Act is an
extreme example. It is divided into Parts, dealing
respectively with customs and excise duty, value
added tax, income tax, capital gains tax, stamp
duty, capital transfer tax and so on. Even within a
Part of a Finance Act the various provisions have
quite different aims....
In Hari Krishna Bhargav v. Union of India [(1966) 2
SCR 22 : AIR 1966 SC 619 : (1966) 59 ITR 243] ,
this Court said : (SCR p. 27)
There is no prohibition against the Parliament
enacting in a single statute, matters which call
for the exercise of power under two or more
entries in List I of the Seventh Schedule.
Illustrations of such legislation are not wanting
in our statute book, and the fact that one of
such entries is the residuary entry does not also
attract any disability."
Therefore, insofar as the provisions of the Banking
Regulation Act, 1949 also provide for the regulation of
amalgamation etc., of a banking company, it could be
said that the Banking Regulation Act, 1949 could make
provision for such measures as well on account of the
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
fact that both incorporation, regulation and winding up
of Corporations including Banking Companies (but
excluding Co-operative Societies) as well as the subject
of banking are both within the competence of the Union
Parliament by virtue of Entries 43 and 45 in List-I of the
Seventh Schedule. However, insofar as the provisions of
the Banking Regulation Act, 1949 seek to regulate the
incorporation, regulation or winding up (including
amalgamation) of a Co-operative Society, it must be
held that the provisions of the Banking Regulation Act,
1949 to that extent cannot apply to Co-operative
Societies as any other interpretation would mean that
subjects specifically excluded from List-I would be
controlled by a legislation made with reference to
Entries in List -I. In other words, the Banking Regulation
Act, 1949, in so far as it seeks to regulate activities of
Cooperative Societies falling outside the scope of
banking and falling within the scope of incorporation,
regulation and winding up of Co-operative Societies
cannot be held to be operative against Co-operative
Societies which are engaged in the banking business.
Viewed in that manner, the only conclusion can be that,
while in every aspect of banking, Co-operative Societies
engaged in the business of banking would be subject to
the provisions in the Banking Regulation Act, 1949 in so
far as it seeks to regulate the business of banking, the
provisions in the Banking Regulation Act, 1949, which
encroach into the aspects of incorporation, regulation
and winding up of Co-operative Societies would have to
be held inapplicable to Co-operative Societies. It cannot
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
be disputed that amalgamation by its very nature is an
aspect of incorporation and/or regulation and cannot be
an aspect of banking. Therefore, when amalgamation
and regulation of Co-operative Societies is specifically
excluded from Entry 43 of List-I and is specifically
included in Entry 32 of List-II, it cannot be said that by
virtue of law relating to banking (The Banking
Regulation Act, 1949) under and with reference to Entry
45 of List-I any aspect of incorporation and regulation of
Co-operative Societies could be brought under the
control of Union Legislation referable to Entry 45 of List-
I. In Waverly Jute Mills Co.Ltd. v. Raymon and Company
(India) Pvt. Ltd., AIR 1963 SC 90, it was held:-
"11.It is next argued for the appellants that even if a
law on Forward Contracts can be said to be a law on
Futures Markets, it must be held to be legislation
falling under Entry 26 in List II, and not Entry 48 in
List I, because Forward Contracts form a major sector
of modern trade, and constitute its very core, and to
exclude them from the ambit of Entry 26 in List II,
would be to rob it of much of its contents. Reliance
was placed in support of this contention, on the rule
of construction that the entries in the Lists should be
construed liberally and on the decision in Bhuwalka
Brothers Ltd. v. Dunichand Rateria, AIR 1952 Cal 740
(SB) which, on this point was affirmed by this Court in
Duni Chand Rateria v. Bhuwalka Brothers Ltd. 1955-1
SCR 1071: (S) AIR 1955 SC 182. The rule of
construction is undoubtedly well established that the
entries in the Lists should be construed broadly and
not in a narrow or pedantic sense. But there is no
need for the appellants to call this rule in aid of their
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
contention, as trade and commerce would, in their
ordinary and accepted sense, include forward
contracts. That was the view which was adopted in
Bhuwalka Brothers Ltd. case, AIR 1952 Cal 740 (SB)
and which commended itself to this Court in Duni
Chand Rateria case., 1955- 1 SCR 1071: (S) AIR 1955
SC 182. Therefore, if the question were simply
whether a law on Forward Contracts would be a law
with respect to Trade and commerce, there should be
no difficulty in answering it in the affirmative. But the
point which we have got to decide is as to the scope
of the entry "Trade and commerce" read in
juxtaposition with Entry 48 of List I. As the two entries
relate to the powers mutually exclusive of two
different legislatures, the question is how these two
are to be reconciled. Now it is a rule of construction
as well established as that on which the appellants
rely, that the entries in the Lists should be so
construed as to give effect to all of them and that a
construction which will result in any of them being
rendered futile or otiose must be avoided. It follows
from this that where there are two entries, one
general in its character and the other specific, the
former must be construed as excluding the latter. This
is only an application of the general maxim that
Generalia specialibus non derogant. It is obvious that
if Entry 26 is to be construed as comprehending
Forward Contracts, then "Futures Markets" in Entry 48
will be rendered useless. We are therefore of opinion
that legislation on Forward Contracts must be held to
fall within the exclusive competence of the Union
under Entry 48 in List I."
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
32. No doubt the provisions of the Banking Regulation
Act will apply to the Co-operative Societies subject to the
modifications specified in Section 56 but there is no
provision regulating any aspect other than the banking. The
reference of term 'banking company', Section 56 or 'the
company' or 'such company' in the Banking Regulation Act
shall be construed as references to the Co-operative Bank.
Thus, the power of inspection, the power of Reserve Bank of
India to issue directions in respect of stressed assets and
further powers as set out in Section 36 providing control
over the management and all other powers of the Banking
Regulation Act permitting the Reserve Bank to intervene the
affairs of a banking company would definitely extend to the
Co-operative Banks with the aim to safeguard and insure
that the Co-operative Banks engaged in banking activity are
subject to the overall control of the RBI. Un-amended
Section 14 and amended Section 14A read as under:-
14.Amalgamation, transfer of assets and liabilities and
division of societies.-(1)A society may, 23 [xxx] by a
resolution passed by a two-third majority of the
members present and voting at a general body meeting
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
of the society,- (a)transfer its assets and liabilities in
whole or in part to any other society; (b)divide itself into
two or more societies (2)Any two or more societies may,
23a[xxx] by a resolution passed by a two third majority
of the members present and voting at a general body
meeting of each such society, amalgamate themselves
and form a new society. (3)The resolution of a society
under sub-section (1) or sub-section (2) shall contain all
particulars of the transfer, division or amalgamation, as
the case may be. (4)When a society has passed any
such resolution, it shall give notice thereof in writing to
all its members and creditors and, notwithstanding the
provisions of section 24 or any bye-law or contract to
the contrary, any member or creditor shall, within a
period of two months from the date of service of the
notice upon him, have the option of withdrawing his
shares, deposits or loans, as the case may be. (5)Any
member or creditor who does not exercise his option
within the period specified in sub-section (4) shall be
deemed to have given his assent to the proposals
contained in the resolution. (6)A resolution passed by a
society under this section shall not take effect until
either-- (a)the assent thereto of all the members and
creditors has been given or deemed to have been given;
or (b)all claims of members and creditors who exercise
the option referred to in sub-section (4) within the
period specified therein, have been met in full. (7)Where
a resolution passed by a society under this section
involves the transfer of any assets and liabilities, the
resolution shall, notwithstanding anything contained in
any law for the time being in force, be a sufficient
conveyance to vest the assets and liabilities in the
transferee without any assurance.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
14A.Provisions regarding transfer of assets and liabilities of
District Co-operative Banks to the Kerala State Co-operative
Bank. - (1) Notwithstanding anything contained in this Act or
in any other law for the time being in force, the District Co-
operative Banks may by a resolution passed by a simple
majority of the members present and voting at the special
general body meeting of the members, transfer its assets and
liabilities in whole to the Kerala State Co-operative Bank and
such transfer shall take effect from the date on which the
Registrar approves the resolution.
(2) The resolution shall contain particulars of the assets and
liabilities to be transferred.
(3) When a District Co-operative Bank has passed any such
resolution, under sub-section (1), it shall give notice thereof in
writing to all its members within seven days from the date of
resolution, notwithstanding anything contained in the
provisions of Section 24 or any Rules or any bye-laws and sub-
rules or any contract to the contrary, any member shall, within
a period of thirty days from the date of issuance of the said
notice, have the option of withdrawing his shares, deposits or
closing loans, as the case may be:
Provided that any other debtor or creditor shall be informed of
such a resolution through publication of notice in two leading
daily newspapers in vernacular language within seven days
from the date of resolution that they have the option to
withdraw deposit, loans, as the case may be, within a period of
thirty days from the date of publication of notice.
(4) Any member or creditor or debtor who does not exercise
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
his option within the period specified in sub-section (3) shall
be deemed to have given his assent to the proposals
contained in the resolution.
(5) On and from the date of approval of transfer of assets and
liabilities of each District Co-operative Bank by the Registrar,
all the assets and liabilities as it stood immediately before the
transfer shall without any further act, instrument or deed,
stand transferred to and vested in the Kerala State Co-
operative Bank.
(6) On and from the date of approval of transfer of assets and
liabilities of each of the District Co-operative Bank by the
Registrar, all pending suits or legal proceedings by or against
such Banks shall be continued by the Kerala State Co-
operative Bank."
33. In Section 14 there was a provision incorporated
for amalgamation of the Co-operative Societies with ¾ th
majority but the co-operative societies were not opting to do
the same. The Legislature brought in Section 14A by
substituting ¾th simple majority. But when that was also not
followed the amendment was caused in Section 74H(1)(a) in
2020 with effect from 11th of April, 2020. It is a matter of
record that all the societies in 13 districts had agreed to get
amalgamated with State Co-operative Bank. The whole idea
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
was to have de-layering. The main objects for causing the
amendment by the legislature in Section 14A and Section
74H(1)(a) were as under:
"STATEMENT OF OBJECTS AND REASONS
As per section 14 of the Kerala Co-operative Societies
Act, 1969 two third majority of the members of the
society is required for amalgamation and transfer of
assets and liabilities of two or more co-operative
societies. As far as District Co-operative Banks are
concerned, as it created difficulty in complying with the
transfer of assets and liabilities, the Act was amended
incorporating a new section 14A, to relax the condition
of two third majority as simple majority, in the case of
merger of District Co-operative Banks along with
provisions for protecting the interests of its members,
creditors and depositors, as per the Kerala Co-operative
Societies (Amendment) Act, 2019 (Act 1 of 2019). In
pursuance to the provisions of the said Act, out of 14
District Co-operative Banks, 13 have passed resolution
in favour of amalgamation with the Kerala State Co-
operative Bank, but one District Co-operative Bank, i.e.,
Malappuram District Co-operative Bank has not passed
the resolution and not adopted the scheme of
amalgamation as suggested by the Registrar.
2. The spirit behind the amalgamation of District Co-
operative Banks with the State Co-operative Bank is
that, on the existence of two higher tiers viz., KSCB at
apex level and DCBs at middle level adds to the cost on
interest without offering any significant benefit to the
lowest tier, viz., Primary Agricultural Co-operative
Societies (PACS). De-layering of one tier will help in
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
unlocking these funds which can be put to more
productive uses.
3. As per the provisions of the Kerala Co-operative
Societies (Amendment) Act, 2019 (1 of 2019) the
District Co-operative Banks will cease to exist, and the
members of the said banks i.e., primary co-operative
societies will become the members of the Kerala State
Co-operative Bank. There is no provision in the Kerala
Co-operative Societies Act, 1969 or any other law to
control and regulate the functioning of the District Co-
operative Bank which has not adopted the scheme of
amalgamation. Moreover, the majority of the funds of
the DCBs are the contributions of PACs and PACs
became the members of the SCB. Since the DCBs have
no existence, if the PACS withdraw their deposits from
DCB, then the existence of DCB itself also will be under
challenge.
4. In the above circumstance, Government have
decided to merge the District Co-operative Bank which
has not passed resolution in favour of amalgamation,
with the Kerala State Co-operative Bank by adopting a
reasonable method by providing opportunities to its
members, depositors and creditors, by an order of the
Registrar in consultation with the Reserve Bank of
India.
5. As the Legislative Assembly of the State of Kerala
was not in session and the said proposal had to be
given effect immediately, the Kerala Co-operative
Societies (Amendment) Ordinance, 2020 was
promulgated by the Hon'ble Governor of Kerala on 14 th
January, 2020 and the same was published as
Ordinance No.6 of 2020 in the Kerala Gazette
th
Extraordinary No.109 dated 15 January, 2020.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
6. As a Bill to replace the said Ordinance by an Act of
the State Legislature could not be introduced in and
passed by the Kerala Legislative Assembly during its
session which commenced on the 29th day of January,
2020 and ended on the 12th day of February, 2020, the
Kerala Co-operative Societies (Amendment) Ordinance,
2020 was promulgated by the Hon'ble Governor of
Kerala on 17th February, 2020 and published as
Ordinance No. 16 of 2020 in the Kerala Gazette
Extraordinary No.555 dated 18th February, 2020.
7. As a Bill to replace the said Ordinance by an Act of
the State Legislature could not be introduced in and
passed by the Kerala Legislative Assembly during its
session which commenced on the 2 nd March, 2020 and
ended on the 13th day of March, 2020, the Kerala Co-
operative Societies (Amendment) Ordinance, 2020 was
promulgated by the Hon'ble Governor of Kerala on 31 st
March, 2020 and was published as Ordinance No.20 of
2020 in the Kerala Gazette Extraordinary No. 1023
dated 1" April, 2020.
8. The Hon'ble High Court of Kerala in its interim order,
passed in certain Writ Petitions, directed the Reserve
Bank of India not to proceed further as per the
provisions of the Ordinance. Moreover, the recent
scenario of lockdown introduced throughout the
country, also affected the completion of merging
process. Hence the merging process could not be
completed within a period of 3 months from the date of
commencement of the Ordinance. Hence Government
decided to make suitable amendments.
9. As the Legislative Assembly of the State of Kerala
was not in session and as the said proposal had to be
given effect immediately the Kerala Co- operative
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
Societies (Second Amendment) Ordinance, 2020 was
promulgated by the Hon'ble Governor on the 9 th day of
April, 2020 and was published as Ordinance No.27 of
2020 in the Kerala Gazette Extraordinary No.1048
dated 11th April, 2020.
10. As a Bill to replace the said Ordinance by an Act of
the State Legislature could not be introduced in and
passed by the Kerala Legislative Assembly during its
session which commenced on the 24th day of August,
2020 and ended on the same day and in order to keep
alive the provisions of the said Ordinance, the Kerala
Co-operative Societies (Second Amendment)
Ordinance, 2020 was promulgated by the Hon'ble
Governor of Kerala on the 28th day of September, 2020
and was published as Ordinance No.58 of 2020 in the
Kerala Gazette Extraordinary No.2194 dated 28th
September, 2020.
11. Though Bill No.274 of 2021 of the Fourteenth Kerala
Legislative Assembly was published to replace the said
Ordinance by an Act of the State Legislature, the same
could not be introduced in and passed by the Kerala
Legislative Assembly during its session which
commenced on the 31st day of December, 2020 and
ended on the same day and during its session which
commenced on the 8th day of January, 2021 and ended
on 22nd January, 2021 due to paucity of time.
12. In order to keep alive the provisions of the said
Ordinance, the Kerala Co-operative Societies
(Amendment) Ordinance, 2021 was promulgated by the
Governor of Kerala on the 9 th day of February, 2021 and
the same was published as Ordinance No.24 of 2021 in
the Kerala Gazette Extraordinary No.649 dated 10th
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
February, 2021.
13. As a Bill to replace the said Ordinance by an Act of
the State Legislature could not be introduced in and
passed by the Kerala Legislative Assembly during its
session which commenced on the 24 th day of May, 2021
and ended on the 10 th day of June, 2021 and in order
to keep alive the provisions of the said Ordinance, the
Kerala Co-operative Societies (Amendment) Ordinance,
2021 (92 of 2021) was promulgated by the Hon'ble
Governor of Kerala on 2nd day of July, 2021 and the
same was published in the Kerala Gazette
Extraordinary No.1954 dated 3rd July, 2021.
14. There exists two types of Primary Dairy Co-
operative Societies, i.e., traditional Dairy Co-operative
Societies and Anand Pattern Co-operative Societies
(APCOS). As per G.O. (P) No.183/79/AD dated 27 th April,
1979, it was directed to take necessary steps to amend
the Kerala Co-operative Societies Act, 1969 with regard
to the establishment and functioning of Anand Pattern
Dairy Co-operative Societies, Regional Co-operative
Milk Producers' Unions and State Federation.
15. The expert committee under the Chairmanship of
former Dairy Development Commissioner Smt. Lida
Jacob, IAS (Rtd.), constituted to conduct a
comprehensive study on the three-tier Dairy Co-
operative structure in the Kerala State recommended
for limiting the term of members of the managing
committee to a maximum of 3 terms, women
participation etc. The same was reiterated in the report
submitted by the High Level Committee consisting of
experts from all fields of Animal Husbandry and Dairy
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
Sectors.
16. In the above circumstances, with a view to
strengthen the functioning of the Primary Dairy Co-
operative Societies and the Regional Co-operative Milk
Producers' Union, to ensure that only the real dairy
farmers can become the active members of the Dairy
Co-operative Societies and its managing committees,
to limit the term of the members of the managing
committees of Regional Co-operative Milk Producers'
Union to a maximum of three terms, to ensure women
participation in these societies and to constitute
recruitment committees to ensure fair recruitment
process in the Regional Co-operative Milk Producers'
Union, new provisions were needed to be incorporated
in the Kerala Co-operative Societies Act, 1969 (21 of
1969) by amending sections 2, 8A, 16, 28, 28AB, 64
and by inserting new sections 16B and 80BB.
17. As the Kerala Legislative Assembly of the State of
Kerala was not in session and as the said proposals had
to be given effect immediately, the Kerala Co-operative
Societies (Second Amendment) Ordinance, 2021 was
promulgated by the Governor of Kerala on the 12th day
of February, 2021 and published as Ordinance No.32 of
2021 in the Kerala Gazette Extraordinary No.725 dated
12th February, 2021. Due to inadvertent omission,
certain clerical errors were crept in certain provisions of
the said Ordinance. Hence, the Government have
decided to make necessary amendments in the
relevant provisions to rectify the clerical errors. As the
Legislative Assembly of the State of Kerala was not in
session and as the said proposals had to be given
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
effect immediately, the Kerala Co-operative Societies
(Third Amendment) Ordinance, 2021 was promulgated
by the Hon'ble Governor of Kerala on the 24 th day of
February, 2021 and published as Ordinance No.47 of
2021 in the Kerala Gazette Extraordinary No.945 dated
24th February, 2021.
18. A Bill to replace the said two Ordinances by an Act
of the State Legislature could not be introduced in and
passed by the Kerala Legislative Assembly during its
session which commenced on the 24 th day of May, 2021
and ended on 10th day of June, 2021.
19. As the Legislative Assembly of the State of Kerala
was not in session and as the said proposals had to be
given effect immediately the Kerala Co-operative
Societies (Second Amendment) Ordinance, 2021 (93 of
2021) was promulgated by the Hon'ble Governor on 2 nd
day of July, 2021 and the same was published in the
Kerala Gazette Extraordinary No. 1952 dated 3 rd July,
2021.
20. Though a Bill to replace the Ordinance Nos.92 of
2021 and 93 of 2021 by an Act of State Legislature was
published as Bill No.9 of the Fifteenth Kerala Legislative
Assembly by conjoining the provisions of Ordinances,
same could not be introduced in and passed by the
Kerala Legislative Assembly during its session which
commenced on the 22nd day of July, 2021 and ended on
the 13th day of August, 2021 due to paucity of time.
21. In order to keep alive the provisions of the said
Ordinance, the Kerala Co-operative Societies
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
(Amendment) Ordinance, 2021 was promulgated by the
Governor of Kerala on the 23rd day of August, 2021 and
the same was published as Ordinance No.117 of 2021
in the Kerala Gazette Extraordinary No.2477 dated 25 th
August, 2021.
22. The Bill seeks to replace the above said Ordinance
No.117 of 2021 by an Act of State Legislature.
FINANCIAL MEMORANDUM
The Bill, if enacted and brought into operation, would
not involve any additional expenditure from the
Consolidated Fund of the State.
MEMORANDUM REGARDING DELEGATED LEGISLATION
Sub-section (1)(a) of section 74H proposed to be
inserted in the principal Act by clause 3 of the Bill seeks
to empower the Registrar to issue order of merger.
2. Sub-section (1) of section 80BB proposed to be
inserted in the principal Act by clause 10 of the Bill
empowers the Government to constitute Recruitment
Committees for the entire selection and recruitment
process of all permanent employees of the Regional
Co-operative Milk Producers' Union.
3. The matter in respect of which notifications or orders
may be issued or rules may be made are matter of
procedure and are of routine and administrative in
nature. Further, the rules to be made are subject to the
scrutiny of the Kerala Legislative Assembly. The
delegation of Legislative power is therefore, of a
normal character."
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
34. Learned Single Judge very extensively dealt with
in every arguments raised by the appellants/petitioners with
regard to the domain of the Legislature and applicability of
the Entries 43 and 45 of List-I of the seventh schedule and
Entry 32 and on analysis of the case law, in our considered
opinion, has rightly rejected the contention of the
appellants.
35. We do not find any illegality, impropriety or
perversity in the judgment of the Single Bench. We cannot
lose sight of the fact that all the other thirteen district Co-
operative Societies voluntarily agreed to amalgamate with
the State Co-operative or with the intend of de-layering and
permission granted by the RBI continue to exist. In these
circumstances, it is fully intriguing under what
circumstances the RBI filed a writ appeal by challenging
judgment of the Single Bench. Perhaps it was under some
confusion by that time the amendment under Section 44A
was caused but in view of our findings there is no such
confusion. Accordingly, the appeal filed by the RBI is
dismissed.
W.A.Nos.1957, 1962, 1975, 1977 & 2114 of 2023
Other writ appeals lack merit. Accordingly, all writ
appeals are dismissed.
Sd/-
AMIT RAWAL
JUDGE
Sd/-
C.S. SUDHA
JUDGE
skj
