Andhra Pradesh High Court - Amravati
The Andhra Pradesh State Cooperative ... vs The Anakapalli D.V.Ramana Cooperative ... on 9 May, 2024
HIGH COURT OF ANDHRA PRADESH
MAIN CASE No: W.P.No.11096 of 2024
PROCEEDING SHEET
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02. 09.05.2024 VS, J
I.A.No.1 of 2024
Heard learned counsel for the petitioner
as well as learned Government Pleader for
Mines and Industries.
The present writ petition is filed
challenging the Award passed by the Andhra
Pradesh Cooperative Tribunal in O.A.No.6 of
2019, dated 23.02.2024 on the ground that the
Tribunal, duly referring the Judgment passed by
the Hon'ble Supreme Court in Greater Bombay
Cooperative Bank Limited Versus United
Yarn Tex Private Limited1, has set aside the
award by holding that the Deputy Registrar has
no jurisdiction/power or any authority to issue
certificate under Section 71(1) of the Act, 1964,
in respect of the debts or arrears above
Rs.10,00,000/-.
Sri. P. Veera Reddy, learned Senior
Counsel appearing for the petitioner has
1
2007 6 SCC 236
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brought to the notice of this Court that the
judgment in Greater Bombay Cooperative
Bank Limited Versus United Yarn Tex
Private Limited (referred supra) was
misunderstood by the Tribunal and has allowed
the O.A.No.06 of 2019. But, however, the
Hon'ble Apex Court in paragraph 90 and 91 of
the aforesaid judgment has held as under:
"90. For the reasons stated above and
adopting pervasive and meaningful
interpretation of the provisions of the relevant
statutes and Entries 43, 44 and 45 of list I and
Entry 32 of List II of the Seventh Schedule of
the Constitution, we answer the Reference as
under:-
"Co-operative banks" established under the
Maharastra Co-operative Societies Act, 1960
[MCS Act, 1960]; the Andhra Pradesh Co-
operative Societies Act, 1964 [APCS Act,
1964]; and the Multi-State Co-operative
Societies Act, 2002 [MSCS Act, 2002]
transacting the business of banking, do not fall
within the meaning of "banking company" as
defined in Section 5(c) of the Banking
Regulation Act, 1949 [BR Act]. Therefore, the
provisions of the Recovery Of Debts Due To
Banks And Financial Institutions Act, 1993
[RDB Act] by involving the Doctrine of
Incorporation are not applicable to the
recovery of dues by the cooperatives from their
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members.
91. The field of Co-operative Societies cannot
be said to have been covered by the Central
Legislation by reference to Entry 45, List I of the
Seventh Schedule of the Constitution. Co-
operative banks constituted under the co-
operative Societies Acts enacted by the
respective states would be covered by co-
operative societies by Entry 32 of List II of
Seventh Schedule of the Constitution of India."
The Hon'ble Apex Court, in the above
referred judgment has only held that the
cooperative banks, established under the
various cooperative societies act, including the
Andhra Pradesh Cooperative Societies Act,
1964, transacting the business of banking do
not fall within the meaning of "banking
company" as defined in Section 5(c) of the
Banking Regulation Act, 1949, the provisions of
the Recovery of Debts Due to Banks and
Financial Institutions act, 1993 by invoking the
doctrine of incorporation are not applicable to
the recovery of dues by the co-operatives from
their members.
In view of the same, there shall be interim
suspension of the operation of the order passed
by the Andhra Pradesh Cooperative Tribunal,
Vijayawada in O.A.No.06 of 2019, dated
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23.02.2024, for a period of eight (8) weeks.
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VS, J
W.P.No.11096 of 2024
Issue notice to the respondent No.1.
Learned counsel for the petitioner is permitted to take out personal notice on the respondent No.1 through registered post with acknowledgment due and file proof of service before the Registry.
Post the matter after Summer Vacation - 2024.
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