Patna High Court - Orders
Bishwanath Bhagat & Ors vs The State Of Bihar & Ors on 2 December, 2010
Author: Birendra Prasad Verma
Bench: Birendra Prasad Verma
IN THE HIGH COURT OF JUDICATURE AT PATNA
CWJC No.1004 of 2001
1. Bishwanath Bhagat, son of late Ram Kumar Bhagat, resident of Village-
Garbhandanga, Police-Station-Garbhandanga, District-Kishanganj.
2. Indra Prasad Singh, son of Sri Nasib Lal Singh, Son of Sri Nasib Lal Singh,
resident of Village-Satmerdi
3. Santosh Kumar Singh, son of Nasib Lal Singh, resident of Village- Satmerdi
4. Dilip Kumar Singh, son of Rapat Lal Singh, resident of Village-Satmerdi
5. Amit Kumar Bhagat, son of Rama Prasad Singh, resident of Village-
Garbhandanga
6. Zafar Alam, son of Abdul Rasid, resident of Village- Gila Bari
7. Ramesh Prasad Bhagat, son of late Hosila, resident of Village-
Garbhandanga
8. Gobind Lal Sah, son of sundar Lal Sah, resident of Village-Garbhandanga
9. Smt. Sita Devi, wife of late Yog Narayan Bhagat, resident of Village-
Garbhandanga
10. Smt. Memeen Devi, wife of Dilip Kumar Singh, resident of Village-Satmerdi.
11. Smt. Meena Devi, wife of Indra Prasad Singh, resident of Village-Satmerdi.
12. Kishore Kumar Singh, son of Santosh Kumar Singh, resident of Village-
Satmerdi.
13. Sayeedur Rahman, son of Nasiruddin, resident of Village- Bhurli Bhitta.
14. Md. Kalam, son of Sheikh Nasiruddin, resident of Village-Bhurli Bhitta
15. Krishnadeo Singh, son of Dubraj Singh, resident of Village-Bhurli Bhitta.
16. Anil Kumar Bhagat, son of late Mahesh Prasad, resident of Village-
Garbhandanga
17. Md. Tahir, son of Nasiruddin, resident of Village-Bhurli Bhitta
18. Kamal Kishore Agrawal, son of Bhakti Kishore, resident of Village
Garbhandanga
19. Bhakti Kishore Agrawal, son of late bane Chand Agrawal, resident of
Village- Garbhandanga
20. Lakhan Lal Bhagat, son of late Kamal Prasad Bhagat, resident of Village-
Garbhandanga
21. Durganand Ganesh, son of Bhim Lal Ganesh, resident of Village-Satmadi.
2
22. Md. Tafijuddin, son of Md. Haidar Ali, resident of Village-Garbhandanga.
23. Dr. Mahesh Jha, son of Late Jageshwar Jha, resident of Village-
Garbhandanga.
24. Prabhat Kumar Jha, son of Dr. Mahesh Jha, resident of Village-
Garbhandanga
All are of Police Station- Garbhandanga, District-Kishanganj
Petitioners
Versus
1. The State Of Bihar
2. The Institutional Finance Commissioner, Bihar Lalit Bhawan, Bailey Road,
Patna.
3. The Collector-cum-Chairman, District Level Co-ordination Committee,
Kishanganj
4. The Chairman, Koshi Gramin Kshetria Banks, Shrinagar Hata, Koshi
Colony, Purnia.
5. The Block Development Officer-cum-Chairman, Block Level Banker's
Committee, Haruadanga, situated at Tappu Hat, Police Station-Dighal
Bank, District-Kishanganj.
6. The Branch Manager, Koshi Kshetria Gramin Bank, Garbhandanga, Police
Station, Garbhandanga, District-Kishanganj.
Respondents
-----------
For the Petitioners :- Sri Jagdish Prasad Bhagat, Advocate For the Respondent No. 4 and 6 :- Sri Ajay Kumar Sinha, Advocate :- Sri Rajesh Kumar, Advocate For the State :- Sri Ajay Kumar Sharma AAG -III 5/- 02.12.2010 Heard the parties.
Twenty four petitioners are the consumers and account-holders of Garbhandanga Branch, Distt-Kishanganj, of Kosi Kshetriya Gramin Bank and they are aggrieved by the Resolution dated 22.04.1999 (Annexure-B) of the Board of Directors of the aforesaid Kshetriya Gramin Bank, whereby the 3 aforesaid Garbhandanga branch (hereinafter referred to as "branch in question") has been shifted /relocated at Medical College Chowk/ Caltax Chowk, Dharamganj Kishanganj and its business for providing services to the existing consumers have been merged with Tappu branch of the same bank.
Short facts are necessary to be indicated for disposal of the present writ petition. The branch in question was established and opened on 27.05.1984 in the district of Kishanganj and started doing its business. In fact, altogether, 164 branches including the branch in question of the said Kosi Kshetriya Gramin Bank was established covering almost seven districts of the Kosi and Purnea Divisions of the State. According to the case of the respondent-Bank, branch in question has suffered loss since its inception and loss sustained by the branch in question accumulated to more than 19 lakhs till 31.03.2000. In the aforesaid background, particularly, because of continuous loss sustained by the branch in question, the 113th meeting of the Board of Directors was held on 22.04.1999 and a Resolution was taken to merge the business of this branch with Tappu branch, which is situate at a distance of about 5 kms from the present location. However, the branch in question was resolved to be shifted/ relocated at Medical College Chowk/ Caltax Chowk, Dharamganj, (Kishanganj). Hence, the present writ petition.
Learned counsel appearing for the petitioners submits that after the shifting of the branch in question from the original 4 place and merger of its business with Tappu branch, the petitioners and other consumers are facing undue harassment in transacting their business. Therefore, in his submission, equity demands that the respondent bank may be restrained from shifting the branch in question from the present location to some other location. He further submits that before taking the decision regarding relocation of the branch in question requirement of Section 23A and 23B of the Regional Rural Bank Act, 1976 (hereinafter referred to as " 1976 Act") has not been complied with. Therefore, in his submission, impugned action of the respondent- bank is fit to be set aside.
Mr. Ajay Kumar Sinha, learned counsel appearing on behalf of the respondent nos. 4 and 6, submits that the interest of the petitioners and other consumers of the branch in question has been taken into consideration by the Board of Directors, while taking the Resolution for relocation of the branch in question and merging its business with the Tappu branch. He further submits that the branch in question sustained loss since its inception and the loss accumulated years after years and therefore, it became necessary to relocate the branch in question. He has drawn attention of this Court towards the statement made in the counter affidavit filed on behalf of respondent nos. 4 and 6, of which relevant portion of Paragraph-6, is reproduced herein below:-
"that the respondent Bank examined the various aspect and future prospect of Garbandanga Branch with its sixteen years result but the Bank 5 found no prospect of any change into profitability in the day to come. The potentiality assessment made by the Branch revealed that at Garbon Danga, the Bank cannot be made to run on commercial basis and the continuance of the Branch at Garban Danga is not viable for the respondent bank as such the Board of Directors of the Bank during performance review of the Branches had been expressing serious concern over the performance of Garban Danga Branch had ultimately in the 113th Board meeting which was held on 22.04.1999 it was resolved to shift the Branch merging the business of Garban Danga Branch with Tappu Branch which is situated hardly five kilometers from Garban Danga Branch service area."
Mr. Sinha, further submits that it was not a case of merger or amalgamation of two Regional Rural Banks. It is a case of amalgamation/relocation of two branches of one Regional Rural Bank. Therefore, in his submission, sections 23A and 23B of the 1976, Act would not be applicable in the present case, which contemplates about merger of one Regional Rural Bank into another Regional Rural Bank, but that is not a case here. He appears to be right. He also submits that subsequently, under the provisions of section 23A of 1976, Act, Kosi Kshetriya Gramin Bank was itself merged with some other Regional Rural Bank, which is now named as Uttar Bihar Gramin Bank.
In the aforesaid facts and circumstances, this Court does not find any legal infirmity in the impugned action of the respondent- bank. Consequently, this writ petition fails and is accordingly dismissed.
However, it will be open to the petitioners and similar other consumers of the branch in question to represent before the Uttar Bihar Gramin Bank or some other competent authority for 6 opening of a new branch either in the village in question or in nearby village for the welfare and benefit of the general people. There shall be no order as to costs.
(Birendra Prasad Verma, J. ) Ashwini/-