Karnataka High Court
Karnataka Rajya Kaigarika Sahakara ... vs V Krishnaswamy on 19 December, 2011
Author: N.Kumar
Bench: N.Kumar
\.....,e
IN THE HIGH COURT OF KflNATAI{A AT
Dated this ihe EVQE" day sf Decembéré
PRESENT
THE HON'BLE~ M131. _JUSTIC EN KUMLAR "
THE I-IQNBLE 1viR;' _;iIi;3_1f:CiE"Al$j>AQHHAPURE
wig: zi;m§¢a1':N9_;238é' gjv2-307* (GM-RES}
-------- .Ag;x:g§N2::;§.0@-»--_w545 '5aé3.,5'89 642 of 2008
I §g_;~"::Am_5ea1_ No, 5182 0:' 2009
'V % 'ix-&f1~i%; was 2907
was: :>e:i::pr:'.:§os.~~'L'?435 9638§§'"%;%"*
_ " §3£'1<it?€£i§"é%i'l\EG. 2:253 52868, 221:? 9f2fiC15
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' 32% gsm M226 and 327% {:§2$G8
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§°:5%'£»<m
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EVA N0; 2382 Q5 2937
BETWEEN :
1.
AND :
Karnataka Rajya Kaigarika
Sahakara Bank Niyamita ._
Bull Temple Road I
Basavanagudi
Banga10remO4
by its Secretary/
Managing director
The Autherized Ovfiiger . _
Karnataka Rajya Kaigarilia if 3 '
Sahakara Bank Niyamita "
Bull Te1'I1I31e~.R0ad . V
BasaV*anag'-;1g_:1i'- .
Bar1g;:1I0:9e ~_4 , "
."P€titiOI1€I'rS
{By ;3:i':».I;iyakL1maf'vS Pgfil, Senior Counsei for
"" "Jay§j;ku:::fa:r S"P2;:i1 Assuciaies, Advocates)
_~ §:§i%v}EE1E:S'¥*;fi'¢331f1}{ .
S;3"5iVé;i:§<:a§€sh Eye?
« " '~ 2 ggeéé V§§:}é'1u.7_{ 34 }7€&i'S
i¥?.,<'.;§=§:s.2:",?iVE_: fird Stage?
A 'wizézci E'§"jf;fi:;3S& 8%}: M333:
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Efifj C: 'V' §§r.%sZ¥1:1a§Wa::::§;
' ' "Aged ;i':'§&::i 8% jgeayg
Rig No.22}, gm Siage
2nd R; Cress, 8th Main
Basaveshwaranagar _. * _
Bar1ga10re~79 Re:3p'G:1<ie.ri'iéA ~
{By Sri C S Kothavede, ' § .«
This Wm': appeai filed 1:;:':~:«-._ ?i"~~€t;f thé Kar'nV3;t'aKfa High: Couifi; V
AC: praying :0 Se: asidé the ordézf 'paSsed'-in this xxyjsii peéiiien
No.23s1:L/2005 dated 1f";2{./.l'g{:37f/,2~'Q1:\~,}?'V:V" *
% _ k
BETWEEN: U ,
The Auth0ris.¢d5.QiTfice% and
Gene1'a1v'Ev*I'a31_ag.er ' . ..
Shree 1.BasaVésLE.:w.:afaV Cagép Bank Ltd"
RaViwai*p€:"Lh ' V .v '
Beigguinfig 4' % ' gifipgeiéant
{By 'Si°iV"%f§g§:::€sha&*a€ S. Shaari, Adxzaaaiefi
' .
£Z=u§z.a*;° A7§§<§<g.E §'?.V@ §'1i::: Mzgiia
abaaéi L§{:§§;§ar$
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. Eiazxgraéé
" _ B§;:3gaum~1 .,H§;€s§:3z:de:'1§
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2
Ex
This W231; Appeai fiieé Ends? Section 4 of %;h€..K;%i*'né;'f;aka
High éieurt Ac': praying to S6: aside U16 Qrder pa,s.~iei:_d.'_i::'jV§F';it
Petitian No, E4636 of 2063?. daieé 29~@2~20(38.
EVA Neg 545 of 2008
BETWEEN:
The Bhavasara Kshatriya
C0~Qperat:iVe Bank Limitsd
No.63/67, 24"' Cress
Kilari Road
Bangaiere »~ 560 053 _ , _ ._ 3 L n M
By its Autharised Officér A V f.;.,A]_:_>p€fiant
(By: €Sr'gi:1'T3.i'81kaI'é¢II1, Sergio? Ckjiinsei for
3211' /' as _'«TaraLgarang:.. Ass_d::ia%:es.§ Advocates)
E. Srfii. €35 §\ziEa;1"i_gé£::r:1g>;AV'[-.'_
W;'QS:"'i ;Ra::3=.:i "
giageé 3.§?:Q%ui 45 .yéa::i§ «
Eie9;§di;':g'V 21?; N<}.5?6'
.. «4Z§3Qr§::*?at§oi:' *Ci'Qi§_:_1}?
"~-:E3}5f--éna;?gfa§' 53*? 828632;
' = --. _;8gagg1e:;e~- .-__ 56a 5%
A ._'"§%:<3 ;.<"L-;ss?:Zjs; £311: Régigiraz' sf
2. 4
i:';9wi:»pe%a::va 5GC§€'§i€S
, E iirvsés, E;!E'3rga>:::a Rsaé
'A : E;£a'i§é3h2vara:m
V §§_*3;z;:ga.§I::»§€ Q» 588 G3 wE€3§£sn§€:3"{$
Cf!
{By 8:71 RC}. Shazlihappa Advacaie fer R1
81'; ES. Indirezsh, HCGP for R2} ' * L"
This Writ Appeal filed Under Section 40f. VKé§;fma:3.iia~..
High Court Aci praying to set aside'~th.€a &onTjlerVpé1'3;3€:d E1: the
'vVI'1'i Petition NO. 1756 (if 2008, dated .
'NA N0. 588 Sf 2008
BETWEEN:
Sri Sharada Mahila
Cofiperative Bank Li:d., [
R€pI'€S€f1t€d by its Authorised vv
Officer and Manager _ ' V V
B. Shobha ~
D/cs late
Aged about 453 yeéirs '
Registered' VQ_VffiC~--:: 9.: 51.; V
J.C. Road " _ _
Tum1:uri55'Z2 _ ' ' .MAppe1Ian1:
' " By SE37; 8%. €%2i:8.he::d§°a, Advecaté}
.....
§:f'§ .§)33::'§<ja';::f:s;s %f§§€§;ar
SE6: Ea:_:<~:E§:+§";%§:s'i;:é1§'§2:: VQ<ii€}9"af'
Agéirf. aiscmi 6Z3'j§F€»'2L§s
R53': I'§;Gg§,.,'§§§§.&2 -fE{5E55;§}
éifidagaiégé;«.£X*:e;2sie:"2
" " T?1I:::§:i::,:: * .,,R€5§en<:§e:"2f:
{By S51 S, {iha:*:éras%1€§~:a:*aiah, ;'%éve<:a€;$E
3:
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This V\f:'i€ Appaai fiied {finder Sectiarz 53!: GE th€_E{:2V_1}:*~:1»3":aka
High Ceurt Ac: praying :0 set asidé the Qrdesr p.;1s::»e;::'ri:f: 'Urge
Writ Peiitien N11 11?6 af 2.0089 dated Q4-03~2QOS ' ' ' " '
WA No. 589 of 2008 >-
BETWEEN: '
The Lokapavani Mahfia
Ccyoperative Bank Lt<:i.§
Represented by its Autherissd
Offica and Manager V
Sri K S Sunfl Kumar '
850 K Siddaramaiah
Aged about 39 yeara Vv
Vinabha Road _ _ I
Subhash Nagaifa _ _ "
Mandya ~ ' mAppe11ant
A 1 " Advocate)
ALVS:
E' ,.;':';m: Méiiadaaramma.
.» 4/' ii; EEzEaha1i:<:g;_:§a.h
- figéé. 3;':3_s::*E 38 yearg
_ % "3::@;:a;aja:§:;ga:gh
£0' €:fha::::a:2fl/2
Ags-«:3 ab.-cu: 58 }7€33'S
ggtfi are :3/ai 2% $12353
V " r 4_ Behind Qauvery Eiigh Schsgei
x _ ";:'.%%s,ivana::§ap;§a Layezzé
' 'égxzamigga --- 3?: 49:;
The Béififii}? Commissicner
Fviandya District
Mandya ;,.Res;3%_>hfl€i§,i'$._ *1 .
{By Sri Sridhar C.K., Advocjaié 'f'0:r .
Sri E; S. Indireshg R3} "
T333 Writ APD€a1 fiked Ufi€i'fi;"M$ectiof:.}'£'cf '*:hév;KéV1Vi°nataka
High C0111': Act prayingto set_a_sxi'.:?e'>:1f;e Gfder__pa$3sed in fi'l€
Writ Peiition N05 1680 of 2QO8;datE:d;22-=Q2~2OO8'§ "
'WA. No.64? af2GQ§ '
BETWEEN :
E
The Ai1£h<;i*iséd"Offi<éé:*, A, _
Sr¢¢_VTh3?a"gair:aja C_Q'=«0_pef2:.t_iy'e
Beinkv i;i:1f;ited;i:'ffi'eati » Qfficc _
N?;>.5,._9"%C*i.(:s$ < " _' __ '
ENa§rasimha.raj'a""C§éiQ§i'3:.é
Bang:>£0re ----?'f§3i3G. E} '
é l'v'§a§;3;g.:::*" V
'§:§«<:£ Tbyagara§::--~{.ZG~a§€§a¥;:v<3
. f%3fi2E: Léfigitfisi Head Qffécfi
' = % 9%? {Z3683
" . ifoisay
' . "*Ba:1g"'a.?é_:~:i<3' ~ $68 SQ
..e;§pp€E§an':s
{By S1'? 'E"'ara%;.a:"3;:':a., $615319? Cauzésai fer
EVE/' '§a:'a}e<:a:"a;:r; §;sSe:%:a€e§., fifiayegaéas}
.--~ , Sr}: §;§'€aiga.raj
AND:
Smt. Nagamma
'W/<3 T. Nagaraju
Aged about 41 ysars
Residing at No,1i3
9"} Main Road
Magadi Road ; ' * . «.
Bangalore - 560 GGQ " MRc.»:é;:é;&nQ1¢nt_V§
This Writ Appfiai fiifid E§::'(ie:r. §':é€:"EiQI3 4: o'f'--£h.s: Karnataka
High Caurt Act prayingiij se-it a§Sid€~.V_'ih€"'.QI'd€Y passed in the
Writ Petition N9, 2559'? sf 2_QC5;.V€§8.f;€d } f2n2§08.
WAN0.5182
BETWEEN: ' "
'E116 Jar1.a;€;1*v3., Cmofiéiratéiirzé ':3ar:§{"Lié;;'
3?"? Main? 8?" AC If{1SS ', 2 '
Maiieshivafam' V M
Bangaieré :5 'E359 'C355---. '-- " ---
Repres€:1te{§;«--i_)y 331:3 ._ A S
:3§..i'EhCi"E§€C§ {}ff:a:e:* ~ "
Gsiiéyaé E~E%§a§";a;ger 6 . Jiigpefiapi
V ' $32" "§'a1i'a}§a:'a;1: $@r:ic:;§ 3913:1833 Ea:
' Ta§'8i}:8;§af§"i z'3§>SSG{:TE&f;€S, ,!§§1'G€8i€SE
.v 933:" %
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. &;.g'5§ abaué; 42/? 3:53:53
K x Réséfimg at 'i\§e.,.3E§, 913" Main R.3a§
..5mw»~
<1"
_. _ gfizrzi, K; §--IVEUj=':hy
433? Bieek, Rajajinagar
Bangaiere --~ 580 (318 ..¢Respg::;:'§e1f:: L. * 3
This Writ Appeal flied Under Section 4
High Court Act praying is set aside the Qr<ie':v'-passed in Iihe" .L
Writ Petition No. 12219 0f 2009, datedm2't3 ;Q8;2OC'9}" V
W P NOJ9128 2007
BETWEEN:
Sri Thyagaraja CG~0pera,*:iVe
Bank Ltd., _ L
Nefi, 9* Czees, N. R. Ce:)IOI1:~,Z A
Bangalore - 560 0.19 _ '
Represented byj§:--sj& 1: V :
Authorised C>ffice:*§v' _ _ V _ "
Sri ShiVa1inge'gd'_wdav"3L_ _ ,..Petiti0ner
_ ism; 'E':A,ra};zira,n3, Senier Ceunsel for
'Mfg. 'i"';::'2;ka1fg5;1x_; Egseeciates, Advocates)
é'fi'{?D :
. "ii-afeEa:e EsZa:::dhas'é%«§?éL:::y
Aged _ai;c>::':AEi~?3: jzears
V'R§€S§'§§§:g_éef;_'§'§f).'<?<§58§ Q9'? Cease
Sub: 3:333:33 fiégglfaea
Ba:1;gaEere.~.~ :'i%i§--:"~{} $2} .e.§;espene§en%:
' " AA Eifrie ?e:§*::£e:: is fiie§ zmefier firfleies 22:5 311$; 22?' 3%"
" _ ':Z1e'--.??.€3'I§e%;:iz::§e:: {sf Eedia, §ra.§;;i:1g' is qzjaeh ehe erdez' ei" iiée
E
E3;
Eé/L
' ":%;RBL:%:;3jgm;:-:..«
33:}
DEBT R€CG'J€1"':\f Tribunai in A,S.A, N<:>:E}7,»"2Q%'?, d',§:"1:%.:é.{:§. V<:?*."}Q"
200? at Annsxurewfi as unsustainable. ' »
'NE' N0. 7435 of 2008
BETVVEEN:
Sri Thyagaraja Cc>»c:>p€rative
Bank Ltd.,
No;5§ 9"' cross, N. R. Colony
Bangalore «~ 560 019
Represented by its
Authorised Officer _ , _ ._ V ~ _
Sri TC; Shivalinga Gowda A =...V§Pf:titi0ner
(By Si:?:'T'a:aL£:afafh, Sér1idrVV{;C%i1ns€1 far
M /34. Ta1".:i1_:ara;9: As_sbciates; Advocates)
Sri H. Vkgnkatssh V' 1' _ _ _
S,/G his H;=;n;:;na§:.ii;a§a};
Aged ab0ui'€Z%_£Ay€ars_ A _ "
Rssidinfi at N G,5,G4; :3" iii Czcaga Roaé
§'<§'% ?s="£;5--:in Rsafi, §":";31€?_{E§<: ,
B§:1--gg.E@:€ A re $43 ..,%es§:::::2.d€n§
'§'E%,§'s";3$Ei% Pe'i3":::'o:1 is fiieii mafia; gzéicéas 228 ané 222?' sf
' Csihe Coxgizfjéutieza cf Enciéag pyayéng 'is quaah £36 9:336? sf '£326
*Q5€:c9ver§; 'i'::b:m3;E if} £11353; N<::.§3;"2GG'? ézsiafi
1;} :E..~j2€}@? ai 5§§:2:s:§<u:"e»E:;
ii
'WP N3. $838 Sf 2368
BE?T\Fv'EELN:
The Textiie: Co~0pera1:ive Bank Lfu:i.,
Devanga Market ..
Jumma Masjid Road I
Bangalore --- 560 053
Represented by its Authorized Officer
And Chief Executive Officer _ x V V _
Sri G S Ramesh ".~,..Pétii'i0n§:
{By Sri Tarak9:*a.:n;. LSéf;;1<>i" --C'a1i1:.se1 fer
M / sa Tarakaram- Asévociatfia, ArjivQc.ates}
:'3¥l'L13?.£
SriS.Krish1:{éL V.
8/0 D. Subraméunii'V.;_.»
Aged ab€;n;:1i'T=-1».2A§%;¢ar§fiA: &
Residing at_N0§2,€§2.A..V_4*'<% -- '
W€a\zers'{"10iQn,y' _ V ' ' '
Gattigere A _ ' _ _
Bangfa§Qre~--:E.§€3-{}85-'_ ;.eRespo:::de:1*{
Eetition is ffisé a:13ée3r Ariécies 225 3.33:} 22? :3?
{;:3:i:7s€§Ejuii9::"§f Enézlag graying 'go gzgash ihe aréar <35 éhe
$33-'§f_ %Rsgégsergv.'Vf;:4€mma,: m AS§. 359.8 5;? 233% daisé 3»-:é«2iC,%S8
a: }:'{1§'i€Xuf$?f5_.
1 1§sfa§§'?EE$ :3? 2088
V' éixéshnaswamgf
Wm
E2
S/9 Venkaiesh {yer
Agefi abaut 65 years
R/{:2 N022}, 31" Stage?
21"? B Cross? 613" Main
Basaveshwaranagar
Bangalore -- 560 079 « V L.
{By Sri C S KOJEhE1¥7a}(§';,A&i"§{¢!Caté} _~ . " - = n
AND:
L Th6 iifintral G0V'er33;neni = V
[Unian 0f India) _ 'A 1 3 .
Separtnieni; cf Eemécsérjiléc ;~'%.ffEag'~r$ '
Banking Division _ V
Ministry offizzancfe arits < V _ .
Con1par1f¥;A;i3T9;ifs 4'
New D.3'1h:i.__ 1 f " .: ' '
By its:Sec:1fe'§;ary"" '
2, The Kafztaiakai.4Raj3%a.,Kaigari1<;a
Sa.haka:° .8321}; N£yaj:i:.:.Ai'fh 3 '
Sufi} T€mp1eVVE{Qf&:f§ "
BaSaf€¢anagu:E§._ . " "
Bangaléré W568 €334
,, ._i§:g' its Se€f&:€a.:*y' V
V. ' \ ' 2 _, :,§m};z§*:3r§s€d Qfilce?
_ 'Vr1:§';f3..§.2i{;§';_a1E§j§}£3 'Ragya Eiaigfaréiia
._ :"§e3:'1é7:§:::2:.:'§5a::§§ ?~=E§ya:m:'{§39.
' _ 321:1 ??:::.*I=_:p§C-- R935':
" Bavsaaraééagudi
Bzémgglore -- 3359 SW;
_ V 'fhe §€;€e€f3""%.--'§ Eazzég 9? E:/zfiia
' ' "i§rE3a:: Baaigs $€pari::;em
?€mpa§::mg3. Rsaé
Bangaisrs « 560 {ESE ...Respsnci::2nis_'»i'-._
(By Sr: Tarakaram, Sesnior Counsel forf _ . ,
M/s. Tarakaram Associates, Advocates f01*'i'{2_:an:i'VR3;
M/s, King & Partridge, A;i\%sC'a:€s for.;R4§;" ._ V'
R1 senredi, .. 5 *
This Vvrit Petition is filed' u_nds§i;'\5rfi:é]es
the Constitution sf India? pray1_n'g_sbio quas'n._ ti_1sV'*no"ti'i'icati0nV
issued by the Central Government.ihifoughiisidepartment of
Economic Affairs, Banking Dix/iisioii_;'--i'Viinistry si7Fi'nan<:e and
Company Affairs, New 'D4_efi'}f1i yids, .Anne::1'ire»A, dated 28~Oi~«
2003 in ss far as {he pstitisiisrsenssriieéi by issuing a wrii
of Certiorari 0: any other vqijivft, 'Q1'd§i'F,Vff)Y"Cfi1"(§C~ti€31L
WP N0.22127'_Q}€2Cii{3"5'_.
BETWEEN: 4'
1, s,"s;"i*3ra£ia.shi7'§. _ .
53/53 S? P, VS'1:brafnai*i~sy"Seuy
Aged absnt
Z S; Pssffiinis. _ V. ._
V ,2' s S. P. V'irr§--E"§.k8;8i1
V. :&§f..}$i1'€ 5:3' §<;:'s;fs
- if ~3si'i;i;"aa:?s géfesicizirig ai
'_ st 3 £22, V .i:a%2ii*i Rags
8&5 €:*<:3sj;~_:~ f'iiasi:si'* Mshaiia
"'«.i¥i}?s'5sis i,.?€i:iii,snsrs
{By Sr: §%'§&§iiiai:§Li§i, {lg }§EiSSEii"¥i't§ié:fg Aidvscaisi
i/«
' "a%J;1-: t§1:::'3t
£3;
It. The District Executive
Magistrate and Deputy
Commissioner
Mysore District
Mysore
2. The Mysore Merchants
Coeeperative Bank Limited-..__
Jetganmohan Palace Road;
Mysore ~ 570 0:24. L' _ _
By its Generai1\/Iarrager ~. mResp0r;-dents
{By Sri B. s. R/a1ééhe'ne§rE;; §§d§'é'e;i_{0f R2;
This 'Wri't_" P6*§;iti01'1 is filed uf1dei*'A:--*--ti'eIes 226 and 227 of
the Constiturtioh ,_Qf~-..IrjL-:1i'a,«.: pfayirtg to' direct to declare that the
respondents: 1_F1El'€{'_E_.'I1O "power}ftQV"seek§ actual possession cf the
property..giVeit,_as'<:seeu»1fit3f_' to"-t.h..e":10an ameunt under the
proxrisiogas of'tE3eCVti0ri.' t3(4}.._e;f M1 1} of the Seeuritization and
Reconsttfuetien. -.E'Vi;"1.af'1~{"§i§L§ ' Assets and Enforcement sf
Security f:?.t€:'~€ST; Aet; "
sf seeié' """
Sr? E'; Quztéfegefleesh
Ageé"'ebe%;s't' »§~?"§;ears
C;R,?e tate. $;'i'7i G lemishmepps
" Eifat gs; 3 38? Mam
.. ttéagav aragalga
§s,§ean Eéagar ?est
'--««-Easjzgatete ~ 356?} {L633 Mfietitienes
s /,
5
35
{By M/54 K. Narayana, AdV9<:at€s}_.--:_ ' '7'
AWNQ;
L The Bangalore Mercanifie
Co-op Bank Ltd,
NQA9, Hospital Road
Shivajinagar
Bangalors w~ 580 051 _ _
(Rapid. by its Liquidator/'\V..," 'A
Authorised Offic6f}_,._ A .. V
2, M/'s. Modern Markc::in'g'Vlnc., V
A Praprietomhip Cfjncérn and..I?.--¢p'td;';,« '
B3/'its Pr<:3i:>5 "
Sri M. 'V .: ' ~
Aged 2ibou:: 43 yéacg ¢_ 1
3/_n %1.a:e'3;_n' C9.:;;:Ma£1iC1:_am «
Rfat N 'O; 748 / 8;. ' Rarriaiah Lane
Ba.SaVan:<1gé;;':"- .» Z * .. ' '
?v'§ai'§:1':9;:ha1ii V'
Bangéigre g~ 5438 ?:3;'3§?' N.Re3spe:3der:I';s
{By 73:; fE'a}:a}:aram, Semis? C:::u,::sۤ far
Z§";§fS';- f§'3;:*aka%'2;f?: A3se€i:a.£;e:~:~§ fiaaévacaisg fa: RE;
' R2 sérvsé}
A ?§§fi£c:§: is 816$ 'ii§i§€:' Ariiciss 226 anfi 22?' Q3?
:';§1e C£:E~"%S§:§§i}ii%fi 9:" éndéa graying 'zg §L§,8.:*':%h the ::::*w:i:::é dated
" 2»E~5----2Si}.?f7;' iggueé by $336 RT Baa}: {A21ne:<§:;re~z%} 35 ifisgfah
' V;2.:'S§'é::*-airy, u§*;:a~'x:§:'€§ 312$ unsuséaéizabés.
3/
E5
'WP N0. 35 $84 of 206'?
BETWEEN:
Smt, Shivananjamma
W'/0 Andaniahg .13: _
Aged about 53 years :
R/0 N0.883/A, 4131 Cross
3rd Main, Prakashnagar T. A " '
Bangalore M 560 021 " _ _V ..,PeTt 1'_tie§ne.i:i
{By Sri A R! Amara:;::a;th a11.§_» Adflrécafié)
AND:
The Bhavasara KSh3tI'iy3.*" . V
C0~0peratiVe Ba:2k_ Lémitksd _.
Sahakara Sadéana _. , '.
Nog68/6'7, 2461 f_;'ir<is's3'..__
Kilari Road ' 1', b 3
Ba:1ga1:3':€"'--*~ ;,,Respor:de:::'£
_ " 4(Bg'Sr§"iTgLra.1{arai:j,, Senior Counsei for
' M/'SE €'ZTar*a i<;a_raJ:ié:§s$aciat€s, Advacaieg}
ER/':3?' ?'s'::'f:2Z_§;<7: £3 fflfid Lméer sifliciga 226 and 22'? 9f
_ « ':§3:9":Z'@:1:":9§L%1::?,':§'é:~f.§1:: ca" Endia praying is €331 €316 rscarés {mm tbs
:'§%?"" ..§;:Ev€;fE§i€Aal;3_a%v CE'v'IE\:'§ Court at Bangaiors :3: Csiviiscw
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W5 9 Subbayamaiah :/
ANS:
EV'
E'?
Agsé ?3 years
Penshalaiah
S/0 Subbaramaiah
Aged 53 years
Both are residing at
NCL142/A, 2% Main Road A :
Sonnenahalli Further Extensién
Bangaloré --- 560 04?
{By Sri 3 N B1:§é;:,_V"'Adva¢é;:e} T
Bhavasar.3gKshat§'iyaV' ' - _ _ _
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Eiii,/3, '§'a§a1;a:r'a::1 Ae§ae§a'iss§ Aévscaieg £03" R3,;
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E
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datézi 13*' Septcimbsr 209'? {Ar:n€:Xur€~D} and aisg sf
sake published in "The Hindu" daily nexvspap€§f..__tiai€d'VT. 1'83?
Septeypber I007 {Anr1eXu_:'e»-E}. 1 " --'-~ "
W@3N0199920f2OO? _,w_
IHYDNEEN: I
Muitaiah
S / 0 late Vénkataramanappa
Aged 24 years
R/0 H.NO.3371
18? Main Road, 1151 Cros;s"'»~..
Chandranagara
Kumaraswarny Layout H _ _ u -- . ._ =
Bangalore M 78 " 3 « ,;'Petiti0ner
__ (3 A5f1{}{)Cate)
AND
E , Bé1aérasafé::_"§{$3I:af£:'é;2:; CQ~G§€3C'a§§¥€
Bank Lirri. §§ Sahakg zfé; Sadana
Regd. €_3;fiC<3.'§§§{:;8:2f§7, 24331 Cress
_;jE<:iEa.€i Realsi.
v.'¢[._\"Bs;:2;g21i_0§e «- 53' *****
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'agagkzzfiw
S.ah':f= Rafa Saéana
.. Régfis Gffics E'~EsS§3;'§'?, 24331 €:§"%:"sSS
V "»7EiiEa:'i Raaé
' ' -- Bagzggaigre - 53 mR€$§®::§€2*:{s
: / V
{By Sri Tarakaram, Senier Counsei fGI{'i...__ VV V 3
M/s. Tarakaram Associates, Advocateg fmj . f _' -1- '
R}. Served}
This 'Writ Petition is filed und'€fVA1*ticI§3s "ia_r3(§ of b
the Canstitution cf India, prayir1g'._t:o :qu;§;shT»fthé'-sale"-LL._:1c;1E§;a:'e
dated 12-iE2-200'? issued by thé;__Ss3cV:or1d ':f.esp.0:f1dC_fi't.
Ar1nexure~B.
W? No. 235 of 2008
BETWEEN:
E} Smw; Kokila K H
W/0 P.D,;Ia'yaran1' . .
Agfi 50
P D. TJ'aj;;;1farfi7i V' . .
S279 iate Dora? S'x'V?§.1'fi:J: Haida
Agefiisiyears * " =
§:m.;§»
Beth afé fie €33' 'ii're::;s
_{€}f:i<1i:a Réirazfi T
- __é\E§a:* Su:1dafa::':"*E§§€::2Qr§&E Saieei
"f:iVek:a,a§gar
j ":§f.§€.'E}, 'P§:é:"a::; V
I§8';:2§aE_e;*.éf 5&3 Qééf? 4 g Eeéiiianera
' 82:21 RE. Seséipazzfia S: 3.8. Prasaé
' ~ fiévacatesé
' TEE': BE:avasa:*a Eisfiairijga Co~0p€:*a%ii/*6
2?}
Bank L€d.,
'Sahakara Sadar1a"
N063/67, 24"" CFGSS
Kilari Road . ~
Bangalore ---» 523 .z._R«:sp{:j:1dé:r1t<--A
(By Sr: Tarakaram, Seriiar {20;.ins€:1'fQf*- ' __
M / s. Tarakaram As$0C:iat<:s,'-Adv0ca;t<:s'} , «. V
This Writ Petitisn is fi1éc?--,iir2.:;ie1' 1.?\".rf__iciesV 'V22? (if
{he Constitution of India, pfayi11g to"--déCiarég that the
respondent has :10 pmver Q1"-j;1;§1"iS'€{__i,Cti0fl""C~Q invoke {he
provisiens cf the Sec1;.tji"U'zat.ion,.iI;:1u_Re:c0nstru<:ti0n of the
Financial Assets Act 2002 3:1' ':36 13.5 p<:ft:i;;f<:;.:er is CGIICQIIEECL
WP N0.1O56 .
BETWEEN5: _ '
Sri A PHHOIIIQQ , ' _
859 J' A:-<'f3}<i«rzatha:1V _ __ T'
Aged abaui £51» §;e3;r$ 4' AA =
Rgat Sid Ng;'?23,!."g
site" :§;!o;fz;--,. Naw 2 g
" V' .553 e:7Zri;>s;b:~*;.,.A §€;amacE:3:':d:'ap§a
Lajgeuf, E,§IfLf§.}?:§:'z;-ZSIEES. §a1ya
Eksbbai 'EE.af1gi€ .V "
§3.a:::g3E9':*::'''i : _§{5i€:} £383: ' ; .§e§i%:iof;e:'
féri E'; {E Chaadrashaiiara Refiéy, Aézzosafige}
«. " . '§%::eB?3avas3ra Kahafiizé a C99 eraéévé , V
._ _ . 1 3 2
§f:§.§1§;<: Lia" %/
"Sahakara Saéanefi
N063/6?, 25531 Cirasg
Kilari Road
Bangalore - 58
Rap. by its President ..._Rc3--pbnde.nt«.
{By S1°iTarakaram, Senibr C.O1A.J.I1Sé1'f{.)I'~_ , "
M/3.. Tarakaram z¥\s3_eciaté's_, AdV0c:;'ii€s} ;
This '\?Vrit Petitianjs fiieii.-'u:1£:i€rV';<§rtic1e'S'2:265;3nd 227 of
the Censtitution sf India? 'p.ray.ing:.f;:j'q;;as11. the natice issued by
the respendant Bank datedl2~_1f2:52OO2?:_ undgr sectign 33(4) 9f
the Securitizatiezg and R_.<§éoVnstV1_'u«f:ti0"n 2«;rj;g:1.. Final assets and
Enforcement of .:S-excurifiy VInt§3res't.."»ActV~ 2002 and the public
au<:ti0n n0tice:'Viss';,m;d 1:1. t11ie"Hir:'t;h_: 'd.ai}y..Vnewspap€r fiated E7»
i~2008 vid<:.fiL*ir;c§;I_.115e~;I -M ;:iespeCtiVe1y.
WP Nof;u1_0 <::f:ié_>(§.§3:'< '
BETWEEN; " _
S1': 3 .2153:-3.:am :Eh&i ~
Sf 'ifianégéi Bh§;'£E~ _ _____ M _
Agézi aijffiazi "$3.2 jgaazé
'R§$§s3i1":g '$9; '§xE_e7';v1:__?5:«f E
' -..4fi¥_M3i::'Re':::§;;. _{3_E.3ama:a§ ?ei
" 'V " g:3:T§;
E»~::::':'§iaé§f::; G E 8 ,H?€§}:"§§i3};"}33,§
{By Sm: E'x!§&::m4::han P R fiézfscate}
V' " Tbs §§f:8;Vasa:'a fishgérégfa {Zs3~@§€:"e2%;§v%:
Bank iiéw
22;
Mafieshwaram Branch
Representefi by its Manager
and authorisrsd Qfficer
2* Sri Krishnamurthy Raju
S/0 late Nanjundappa Raju
Aged about 61 years .. :
#N0.1?'4/1, 6"' Cross, 4*" Ma.i1:1 __
Shamaraj Pet 1
Barlgalore --«~ 560 018 :.R€5_V90fi€1efifS
{By Sri TaY3.I{§tYaH13..'SV€E?iVCiT VCQUHSSI V161'
M/S. Tarakaram.4AE*soc{iat§:s, £3'-..d250VCa.tes for R1)
This VK/'tit Petition §§_VfiV1(:--d L1,:1Lier'V25';rti£31.e2:§V 226 and 227 of
the Constitution VVlVf_1dia..jV praying_f0.VVquash':the notice dated 14-
12008? vide z{V\n:i;c:;ur€¥<,A§ 355 fzija aé"®<jheduie property is
concerned. ' V V' V V = ' '
WP No. :3?2Vé cf..§2:Q08V7'§V
BETWEE¥1'i;"'V V' %
Sr': 3 $amp?s.:.§;V§:u:VfiarV "
S/'Q B€:'>';ai*aju V ' ' V
Aged»a?§;3u;i _____
'f€e;s§§E:"1g Z??? A fimss
~3::sé:;§n :;4o3:a:%:a, __
V{3_%3;é.V:::,3;:*3§VV'E?_¢{h
§a'?g§}E}O§€V '-~ VV ;,.E3€:€£i§8::zer
E EVE;/'S9 'éfasuiéi fiissecégieg, éiéxrgeaéea}
VV V ' V?:;.~;?5iW3"V4'
fF:ie:V éasiihorizsé {fiffécer
VVfS:'*s£;3 Subiamaneahwafa
.§::>»§;3%::*atim3' Bamk L{d.,
A;-Q§:--Ra§ai}1a Bawan
N:::Ji_36, R. V2 Road
Vifihaweshwapurazn _ V '
fianfgaisre ~04 ' L AAAA H .¢.L§i'ffS§Q:I_ f£§:3.:7
'_ jay M/S. Asia: Legai aTg¢mg;%
1 T1::$'§a?:~:: Féiitibri i$ ff?i}e:§V":i_:1de:4"23;;':§L€2;€s' %+{:;d__':§£2'§' eff
£116 $£1:1sj1:if;11i:ix:a:':-- .~:_3_f--I13;dia, _ praymg"<t§ direct Vihgfireififififidefit iv;
--£1;£_'i)p -333 prmseedvings ----a$ _-ggaiinsi jtiié 3:-ale :1a"t:c:e_ iss V
Lizi;-_ ., ._ 2 _ 15:;:1ai_:é1pp;:cab1e-;fm » .
24
All are residing 3:':
Deer NG316, ??h B Main Raad,
Yelahanka Upanagara .-- v _
Bangaiere ~ 560 084 .HPeti'fi;i_:;ne}::~s L"
{By Sri C R GQu1a}2':,'J15;E:iV*{;:%§:fl:) . «
AND: A ' A
The Manager
The Nehrunagar Co-operative
Bank Limited No.17}? _
15': Main Seshad1*ipL1rar::., _ 3 , .
Bangalere ---~ 560 028 ' V _T " v"», ;'E?.€spo::é€ni
(By f'3:rivTara§karéi1'11, Seriiar Courisel for
34/5. ,§£1I'Z:'Jf:€:tI'5f€A1'If:'.'ASS§CiatCS§'Z5xdVGC8.JE€S for R1}
This Writ-::_P6.:titi(5n' u'r1d"::rVArtiC1es 226 and 227 of
the Co11s.tit11_ti'or_1'«:i:i11 :I;n.d13,V p__rayi11g_.tc" declare that the action of
the resVp0ndé'nf'»_VBa'r:k ._i,r1'~.._issuir1g notice dated 20-11~200?Z
published nit: .the':"'-Hi;:1d'u_A Dafiy daied 24«~§1~i/Z007 as per
AI1X1€;"X'LI1'€~~E and3jS=:{ ;h€'~.:x%;0Véefiars datsd 24w£}~2GG'7 as per
§m11eXur€s¥'B_ and F} agains}: a fieafi persm: as ifiegalg vaid and
'i7sfiihQU.§l.,,§H§iSd'§%'f:i(}'11.5 "
. ,. .. ..... ..
8;L?:.W'ifVVE;:2,;E;\%é%
E ' V §:"i ;€;'av'§"£.'i¥;T::':'s;d12;E<;:3:::a:'
,1' :13}. fgigiji. Shankarayga
Eageii aboué 48 ytsara
" {§8,E':{€ Qeeéa
' -- ~17*§/J' (3 Sr: iéaniss V¥'ad:fi/mmar
figed a';::o*:s_*%; 4-2 years
Bath are Residing 3.:
N014/1, 29"? Cross
Old Chamarajapeii
Cubbonpei . --- ~ . V. _
Bangalore » 02 . .P€f7;f;§§}f}€I'S
{By M/'$3 AG. Shivanna & 1':'1!(.:§,v'fi€.)'C'fEl1Lt?S)
AND: V 4' . V V V
The Authorissd Officer . .
Textile Co~0p€rat:i\/e OffiC;¢f'«- _ 1 . V
Textile Cowoperative B3_n1~:Li::y;':«::¢fi}'Vi"
JQM, Road H " .. * "
Banga1or::~:~ 560 _ ' 1.«.;Respo::den:
R Advecate]
ThVi.:.i%_.§Vf:tV_Péi§§_io_nis .f_i1ed'uI1§iér Articles 225 and 22? 9f
the Con$titu£:'c»r:~ of Iijdi3.4,"<3raying to declare that the: action of
'ihr: 3;'r3sp0n--:ie:1t V' iniiiaiing iha pmceedingg uniier
SRP'RASf--A<":i: 1:9' Vré€.Q::ef--~._:he='afieged ameuni dues fmm {E36
psiiiieners "::::<l vsubséquexzi; erder Annexure-C passed by the
BR'? §n_ASA.4'Z;52€,'fiZ}5, diiifiéi 5-WQQGGS and Grdsr £':'xfiEE€X'&f'€-J in
ASE: "§}j§0V.€}§§;"2QQ'V7.._Vda*逧i 2E,~Q§~2G€}'? and SE56? E'::1n<3§:u§e--~L
~*f1.,a3;€{§_ '£.§-v2-»2SG8 Qésgéé by the EBB'? Recmzerj; 1-'ippeiiazis
'§T:i'§§.1f:n5}' a;2i.C§ifz?c%s2:1a§ SE6 iéiegafi aaé wifi/gee}: juréafiéctian'
%;?:*% §*§a,*3:é'<2é"_':;.f ';駧8
' 3E.3*wg§_§;'
", §§3§?3é?ag7é:~... "
' V.gi''~:«Z;;''3Q Sizidégpya
._ " _Age:§-a.E39u%1 Z5 yfiazs
2%
Residing sf Gaiuzu
'?::mku1*TaEui:
And Districi; ..,?e€i_¥;5*§ner~.' 'V' '
{By M/3. AVG Asgociaieg, Adx>0c:*a:e:§}ij b
AND: '
1. Thee Authorised Qfficer -
Sri Sharada Manila CQ~Qp€'f3fiV'€ .
Bank Niyamitha _
Having its Registérad =:)ffie;:--':'
J.C. Road . 7 .. " V
Tumkur _ 5?: :0: ' '
2. Sri Sharadei Mahilfa C:>'~Qpsrat::z¢ ' *
Bank Ni§'afi£¢3:a. 4' _
HaVin_g*iis .4Ré:gi.$té'1'€}i.4_ C}-{fies-£5 '
atJ.C'. mad.' "
Tumliufw;-_5?:Ii,.3:.Ql. '
g=;presér:i:e:d i:s4S€;c1'$taryf
Manage:-r. V' ' ' ' g..Resp0n&€nts
§~{f7a4h€:1€ara, Advscaies}
E¥riiV"§%%?i:i§a:1,V§s fiééé urzfifir ériisies 228 afié 22'?' {if
" «figs {Zi_£§:::3t,::2é§_Q:1 Sf E:f};'<§i§a5 prayégfig 1:3 @3335: éhé: ieffifir E85-S>'i}€§ hey
' . i;Ei§:._,re;~s-:§:>oz;;i§§:§:V~ $12, 2G»8Z~2§€fj:89 in :\E'0,§£§ pf§§.'i§C€§§ ai
'=_é:':;2,$§:":g :'é:~_jC',. *
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» ;§a§:a§,aE:$h:::i
' , WVz'a--f:E;*i §sfEun§§::}?:a§§a
' "zégigd aéaui 51 :;€a:*s
" V' ~-fifzés '-;3_::5f:§$i9::;~. A
2'?
R,/'a*: N0.385'?'., Main
Gayathrinagar _ V 3
Bangaiore - 580 O2}. ."P€tii:;{)m=:i°"-- ff A
{By S111 KLK Law Assaciaifis, Adiroéateéi
AND:
M/sa The Bangalore City C0-9p>'
Bank Ltd"
N013», Pampamahakavz'. Read L'
Chamarajpeé «
Bangalore ---- 56002.8 4_ -' , . V .
Rep by its Auiheriged Qffittét" "».,fE?espond€nt
2' ACE :5€§€t.B8.é'a£iia--«Rao 8:
R1~P1;;:'i1s.1;LQ_th.an:a,Jéxdjiecates)
This Writ.fPVetif3.Qr; _1'S'~.f_i1ed under Articles 226 and 22?' of
{hes Constzitutgen {if 'pgaymg :0 quash 311$ ncstice dated 10--
i:33~2GO8 Aigsued by"th:% '2':-as"po:':de:1t vidg Raf' {€35 BC.CB;'AC»;'
SARE'AESiA;.5_126/2G_€}i?:ii28 igzzder 1:116 pmvisieng of SARFAESE
ACE, 20.52.; by"p;:tEi:f:g; thee ifnznovabie preperty Sf thig §€i§S£iQ1":€1'
Ems gigbiies ausfiofi. an 28~G3--2i'§{}8k, aids .A;3:3€:2;ur€--A argd; 3236227
.,.........¥._).
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Bpangaigre M 5% 02:: ,M?€*i3Z'£if:t3:';§':I1'. _ '
{By M/4:3. Iiiié Lawvéassgciaigs, fi;fiv@c3i~ééjj t f '
zfi_?fi3§?.3.; .
M/S. Thfi Janatha C0~Q§3€raiiV€
Limited
853 Main? 1'? ':33 {3:<'e$s
Maileghwaraxn
Bangalcre ~« 56$ Q55 -- ' .
-'~' . by its authafiseé G:ff.'i£e1'i ...R€S;;3ezi:d€:3i:
_ __ -- . Lzjxigzj fa?
' :§ z§ciate*5;;&.c1:%:s:w;%aie--s}
22% of
"cé daieé 1"?
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efv-gragaerty af 3113' '
1;;-__ pi€e;:§:i{:$§_
133
Bangaiare - 5176;} C332 i,P6iiii0ii<A:::<
EB}? M,»/S. UPASANA. Asgaciaiss, Advoca,--:i§:s'}' 4' j"
AMNQM;
M/s. Bangaiere Mercantile
Ccroperativet Bank Limited
N049, Hosgpiiai Road
Shivajinagar
Bangalore --~ 560 001
Represented by its . _ * '
Official Liquidator V --_ V, Respandeni
(By Siii Tarakar;ini., ::3:31i.i0r' C'0u"nLs--3i for
M7 :3. Tarakaifani A;5:sQcia.t'e$, ACEV(§Cat€S}
This W_T1'*i'i"1?§31'Lii.:§§_n'Vis:_-fiiéd 'Li;{1d§§1'f\.;I'JEiCi€S 226 and 227 (if
the C0nstii1iti0i--i_ pf Ifidi.aV;'~.,'i_pr_éiying to quash the proposed
auctieninggivQf'=._s<:1'i3:diiie_V ggrapérty an 28~3~2008 by ihe
raspondgéni at "A;hHii1iStr3iiV€ Office at No.49 Rama Areade,
Hospiia1'R<3ad, $hia.?é:jifiagé:;5'5Q 2361, at: about 3&0 p.131. as per
Vicie §11nE::§ui:°<?~E,' _ °
WP iséguéssii a§2«:i<38
_____
Hi; " ,§~i;;.:i:i_a'--ia: Naiii
_ mt»
. "-i'_%i;';":s 323:: ifgiiiri, giiagaifij iiiiaiié
A V Aged. siiésgzi 5'? j€€3i'S
f§~i.~?'~$, EF'3:€ai1 Kama?
V .. _vS;'e"Eai§ iiiii, Eiiagazaj iiiaik
V §§g$§ abgui 31? 33315
Beiih are rsiaiéing ai
Nae }.'?é31--55 8?" Main
8133 Crass, Efijayanagar
2nd Stage .- __ '
Bangalere ,,.,Pe:iii.§}n~:%§'s '
{By Sri B Y AChar,:';5;iiVé3?C«a:€:'}
AND:
The Naticanal C0~0perat§v€ Ba11k--.Lfci.,,
N053/1, Bu}! Temple Read u '
Bangalore - 560 019
Represented by tihe 4_ _ 1 ,
Auihorised Officer ' VA I " v"».,.}?.€:3p0:<:&€:3:
{E_.s§3 Daiansiriéi if §;é:%;i§; r§s':'V<>Cate)
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(By Sn' KG, Shanihappa? .E§dVQC$fL:é:%'..:: M
1. The Bhavasara Kashtriya
Cc>~<>perative Bank Ltd,
By its Manager/AuéhorisedjéCfifficer '
Sahakara Sadan .
No.63/673 249* CFOSS
Kflari Read V «_
Bangalore --- 560 853 V
2Q The Assistaijt Registrar' " _
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BETWEEN:
Sri RR Srinivasalu
S/0 late H R Ramaiah
Ageii about 70 years
R/0 510.888, 5"! 'A' Cress
183*» Main, 6"' Black
Kararnangaia _ ¢ '
Bangalore W95 . _ "_ |ea?"€tfii;§,G.¥n:'€r
{By Sr: A "'<3QTpA§p;a§§.é';vsh'§ 'z§{ c§:§0'ca:€§
AND:
Sree Tygaraja €;3Q~dpera't§y<~: B.:c;11k;'Lid.., .
Head Officeiat N(5._.5, 9*" C'i'--i§js.s' : '
Narasimha,raj'a,C<:iiq:1;; , V "
Bangalgire ' _ n _
Rep. by1.V'itS-_Gene'i*:.»:i- M'anage':'---- ._ ' - g..Respondent
{By Séiieéh Se}; éxfivactaie}
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2113 Cmas, 2?"? Main Rgaei
Gandhi Naga?
Mysore
V' _{ ' 533.? 8:? B; Mafie
., .Petit*é?;§fi'ér jg ~.. _ ' 4- '
{By Sri R. 8. Raw': A;Ev0<:at<':%}" = b V.
The Deputy Csmmissiones
and District Magistrats '
Mysare District
Mysore
The €1'f:y Cewoperatiizé B3f;}_§uLi§;§,, --
Rep. by its SecretaryV_ ' v .
Sri Harsha _Re.ad A ' '
MYs0re-1;" ' ' ~~~~ ~
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2% Smi. K? V, Fatima
Aged abaui 371 years
3, Sucheta
Aged abeut 29' yeayg
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' abfiui 431$?
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By its Gesnerak Evianagsr
3. The Authorised OffiCer~i:u:m~
General Manager
The Malleshwaram Coweperativé A
Bank Limited
W} Cross, Malleshwaram
Bangalore » 560 6303
4». Thé Joint Registrar sf C0--0pérg1t:::e
zéocisties .. .
{U/Rule-441}, Arb:<a;a:gi':on--'_ce::, "
Karnataka Stats Urbéjfix ' {Zea {if}
Banks Federation Liglwg V
K.H. Road _
Bangalore» Q23 4' ""';'@,R€SpGfid€I1f8
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36
JUDGMENT
The Constitutional Validity Csf item {V} of S!_ft)¥* , SGCUOI1 {1} of Section 2 of the-A Séc1g;i*iiisafi:$:::___ Rzcorsstruction Gf Financial? f~1ssetSA.V_ find Eirifigrgvemelrzté F Sécurity interest'; Act 2002, for réferred to 213 the 'Act' is the: subject 'rf$:1_§:.1:er/ urther the petitioners in the saidAVV_g2_sjfiA£V séeking fem"
quashing sf issuézd by the Centralfiinanca and Company Affairs (Banking Division} éleieé . whgre zmdsiz 'ihfi Qeniral {:iG§?'€I'1"1E_11€fi'{'!5S'§%éC§§fl§.s'3é§ éC?.e~é§3€:'a:iV§ Bank' as ésfigsd in Ciause 'V " «--.f:€§}v- a f8;;-{:?;§::s.n 5 $5 ?B'c;;:§:§r:g Reguéaéian gm, §§si§, 33 Eaizk' 56? V' ihis :92?' Act, ~ "%"'§:::> vary $31316 pstitigmers chafisngsd the aaiifin sf ~ '_':;E:a é;':.;¥:E3:3rises:E effisgr ii: issuing ::a*::Eca: uzgisr Sséiéiézz 33%} GE East 81": 'ghfi g1"§%.éf§'id fikai ihs Ac: fig 23:3? agpiécafbis E19 ihfi § 5 ma;i':;€rs.§ fizey arse péaseé b€fG:"€ Skis Qsufig Se: decésiag. Eéensex 3'?
bans advances} 'by Cewaperaiive Banks hi: 13f,:P,?v'C:_,v;3V3_::'E%_'1»T;1,/05"
The learnéd Single Judge 9f {hi3 Cgurt allgwed ih§H:?é§i??f;:;é't;i'§§§5éf;, by hi3 Ordfil' dated 12.07.2007 foiisyging the" . Apex Court in GREATER BoMBAY:=co-Q?E1ia:*IVE BA 3.rK*':£;:'D Vs. M/s UNITED YARN TEX»P-YT Li1":t2_.;," & 9&5; :;¢po§~:e§:i AIR 200? so 1584 and he1d"V'£h%§. the C §g:>mpa.ny as defincsd under Sectien «Rcguiaéififi Act, 1949! does 110?; iriclude or ""t1r;; g>, --V.T._'gfiioperatixre bank. Therefore, the Ijaitéj: ioans advanrcéd by C0~operat:Vé thé same, the Bank has preferrefifi' ,1 V
3. V_ _v L§E'@§_?GWi:.:,'§ judgment 9]? zihe Eearneé Smgie " Szfé-1:f€:'€2i Wrii §'é:'i£ii:3nS Szava baa: a§@w€s:§ anfi Qhaiiarigisig %:h4::sé"e:::~§;e'::;;'A' .§§J:§: a§§€aE:3 3:3 prgferrefi, Simiiaréyx §§'§ti'E"S gasséfl %§g afiiizzaziéies Léfififfi" ?;§f'i€ €i}~§j,3€5I'8;t1V€ $eti€:§€s Act i{:av€ §€~P;i1';_*'E:F'1a§.€f1gEd 32:2 sfivsyaé 21%: geiiiians befiare {Elia Caart. » ééiégziieri @?.3;€S"§§§1T} gf E333: ggégfi 5:33" €Qfi8E§fi€§'8;'§i§}'E £2: 22$ {E2636 3132 mass Eflaéierg are taken up far cozzsiéération tggejtizsx-V_and £Eisp3se~:,i sf by this commsn ordsr, HGV~2'€V€I', :[email protected]*,§V_I:;é 'p':zVi"p._é$%3 0§ csnveniencst, ihe facts in W.P.N<::.27:'35V/{)8 are' SC§.:{;v¥1{"f:9"ha25é 3: . fé.<:tuaI background.
FACTUAL MATRIX 4; The Karna':;«;R;?4 S% h%§.kara Bank Niyamita for shgft h€;*§:n gf:eg__V as the ''Bank'', advanced 103:3'/" "fe<gfi:«V.'i1:d;isiri6s, a registered partnership€.f§Vr1fi?';.v_;f1{é fiefault in repayment of foam {G the first petitéoner 'vi Krishna§5J;;m}*; -~V.:«:§¢s;,§v:a§np:ien iha: ha aixmed and §<::sses;s_«:d thé slj%:ve§§i::g"??:c2«:i S€ bearing ?€0.2.2L 2% E £33052; 5?"
«..?§:;'Ea§;iQ\:;'3??f{5-L.AB§Vs::{:§~:,, E S'tag'é§ Easaveahwaza fiagan §8£Eg8§GI'€~8§, ?;Z_::V"f'aé:§. "v£}{3.,_é' :f<£":Er.:{eé:E;:%€ pmpsrijgz is awged and §§SS€SS€§ hy E316 séscsgéfi psééi-:§g:é:, %h€ xxriia 3? '£126 firs: pséiéianegi, E216 gscsrsd .j§€¥:§:ie:1~%r";§3€caI::€ the {miner sf 'She gaéé §:"S§€f"£:J zméer a '~é%.:gi$:§§$§€§ ggéfé: éseéi ::'3:«31:§:fi 2Z.Q?.;?:{}§3 €X€t"ZE.Ji€€§ bf; '$16 fire': 5
3/ 39 peiiiioner in f8.§"{}§;J' GE sesand fifififiiiillfiill A<':¢9rd2Z:":g'_< ii: is a Sires dhana praperty. » L. 3 5' The Bank. instituted which Eater same is be F€~f1L:fEib_fiF€<"i'V' undm" Sectien 70 of the Karnatgkeé:CQfofi%:':*a'§:f<=; Széficieties ACL 1959 and abtained 'Aki/S H3Z~€:ec:h Induatries and <:t1ArV1'€rs? in appeal, {E16 Kamatakga by is arder datéd 09.09.2003 and I'€3II1B.I1d€C1 the matter r€:mancL ihe secend :*€spoad'vé':::: Sestigzn 13$} cf iihe £132, ciaiming iiséfif _3 .sV "Egan? an pa? W25: C9--e:s§e:'ative Ban}:-3 "3'§71:"©";g§:!§?} 2/_%:3%:e~f§1i:'& Hfe"s'§%;$i1d,enE :3 31:3 a:;'ih@:':°S5@ efficazz E2: the '»§ai:i_§:5§:~s::é%:1i%2gs; :hs aiwséééng hause beéangizrig ':§ {he wiée 9:?"
_ 23:13" :a:a:E v§'é:% El? far 3338.
'£525 §é%:§:ie;:ié':95 _:é::'as éescr:"§€d as ejwzisé '$3? {ha féérsé §€"fi.§§®§1€§'
8. "Fhe authefieefi effieer gzgrporiing fie €}:8i_;f§:i_e.,xi,~V.'V}1iS powers under Section 13(2) 95 ihe ACE, issuegi {}1.{)1.20fl4 ':0 M/s High Tech Indlgeufies, discharge the loan borrowed by it 63 days {mm the date ef the :ni:f'.i_ee. ;'i':._e e'py was fomzarded to the firei; 1v9eeei';ved it an EZOLZOO4. in the :'§e£§fie:jer shown the ewner cf the schedule is {he same by filing statemerféeff':?pjeetiog.";o%1%' He also filed.
'W.P.Na.553'2§; the Validity ef the Said ' the authorised officer preeeedee. rzetéee dated 3E;G3,2CIGé purpefiiizég 'iLei"':a.eVi u:.f;:--dei>. Seeéien 13(4) ef the Act? which made «-she v:{E%3:'=;i:b_ApAe:,§v:§ener *:!G"""af%:e:1fi like Wrif; geiiiiefi, ie ififihidfi Size "=§ra32fe§'_fer,_q;éé;1:'-§§':E:j":g ef the saié §esseee§e:: neiriee. B}; eéreer égfhig Ceuéi Se': aeéée ihe gesseseien neiiee Vesiiéz a~~ fiireeiieré :0 the reegenéenie '$9 CG?)-$§§;€§' fire: file <e'§:{ee:t'E~s3:<: iéiieé '$3; ihe firs: §€'ii'§i@§§€f' fie 'she neézlee ieezgeei zeiéier "=___ '"$eet:ie:} 33%} sf fige éei atifi E0 eemm:/znieaée file i"€a$8i"}§§g ///l/ iii} €§€her accepting 9:' regeciing {E6 saznia The: secargd sent; a commumcatian is {he first Qbjectisn without assigning propcjgj r€as§:sf1'¢; : §tzitf:r:.::iL1%;'. Considering the materiai 0bjeCt:0ns ,_ and 2 Exiled W,P.N0.l§38£:h-Q5 % xr':--,:§.';§§§, chafienging the campetence 2iI1C1' ;f' i)é:!TTvi'SC1§VCiZi{V3;Ii 1:5€%spc>nde:1ts :0 pmceed againsi the " dxvéiigfig house of the 2115 petitions: (443 sf E116 Aci.
The said zxfrii V.x/:*:3:*e§ vayfier dated 24.08.2005 directing th; élfiove greunds before the Debt th€ cauge of action arises.
The secéztfi S'i€pS £0 pufeiish She pegsessésn n§:i<:e _date§" : Er; 'Vfiaya Karnaiaka', Kannasia gfifewé-:.fé;i:§;e;* 22;{}§';2{)7{}5, '§":1e§€:a§'é;6:: {ha S€CO§}:§ E°§S§{)1I1d€§"§il 56:2: "1%"-._A;i:52£§:7i:"::;,:2%ca§i015; bsazmg' NCs.~%28§f$5~§§ éaéefi %1'.{3;2§V2§i3_§"::§;:%a:€:i§r:g fine féisé gatiiiiezzer, ihaé {ha §§"G::%€f'i;}?' §€:3c:§;§3*6§'i.a$ gchfifimée yregfiezéy iharsézz zgaauéé 'Q6 Saki an 32 13.3% air}; in $35386 Cizcamsianefia iha §e'::§f{éa:2€€ Eifasfii $1335 2%/fii; gstiiiiiézfza gfieiiifig quaghing 3? {E33 2/ £2 nofices éaiezfi Q:.EO.2{}O5, pubiicaiigfi <3? pessessaior: in {ha new paper and squashing the entire pr<:;cee_e:i:§:.:1§:s; under Section 13(2) and {4} 0f the AcV:,m::1c1ud.ih;§' $c::hedu£€: preparty.
FINDINGS 8: REASONINQOF JUDGE 7', The 1<f:Va.rned SV1f11'g},§h5ard the writ petition filed §;}1éiE1't ihe definition sf "Bank" undeii as Banking Company.
5(0) of the Banking R€guIati§%§.;f1'fic:§V or ezzcampass $316 $9» agaerafixss Barééi. E'héér€iGr€: 33:1: praceesdnlgg Couid E13155 b€€E1 'vV'§;*'i§:iEi;f$.€:3; fay 3-;ij2€ Ci:%4*Q;g"€ra%§a/'6 Bank ggainsi the geiiéiensrs ?J§€;'1E'*3E::' .,fE"E:€ du€§ 35 C9»<:2p€:fa':ii:,?€ Bank azad E'€3CG¥€E"j£' pr@éae§fi::gi$.iE:%:rVé0f am 56%? :€g'L2Ea$€fi.; inasmlgch as, zmrgiér £336 §<f_.a:*na*:aj:£a {?'e~»ep€3;*afi:i¥e Safiigiieg AQL 3:23? amaunt @223 by .3 _ §:%§';:f€;':é%:* ice the: {:€}"G§€fEi§E§""€ Bafik, 3. é§$§:3%:$ c:::a:': $36 f'8..'i$€§ __ "a:':2a'«3:'* ;"~%;€:::§en ?S Q? {E26 Qa»a§erafiV€ Saciefdes A63 50:' resavgrgr 2 5 ,/ ¥ , 43 G? the S326 ameumie The e1e3.n§ng* 05 'Bafiking Cempaefig.-if:»_1:1}:et necessarily be strictly Confined to the Wards usee! of the Banking Regulation Ac; It for Parliament to say thai Banking Company' as defined in Seeiier} Aged operatsive Bank as éefined in C0~ eperative Bank as fhis would necessarily lead t'o a 1AQg_iea.1V jfiéfat there was a eonseieus eXei:211Vs'ie}§-.ei>Vf from the purview of the Act. Banks seems U} be eomprehensivee self» e0n:ainee£er:fi j?3'*€:n1€C§i€$ avafiabiie :9 them under {he {:§7C}§€T3eé}§'?$: fieeeieéies 'Act; Wélfie eehez' banks ané finaneiai «inst:-iu'i§e,_e,e éid r:e;%E"*r':'a'é%e such S}3€i€§f;' remeéies 312$ %:§:ey have 'fie £%é..?Ce{§§ Qeurts. 'See Age}: Qieesi, in ihe afeeeeaéd judg:éen§_?ia§_ Etzeéé eke}: the {Z9~epera.i:§xze Bazeéis performing '.{u:1e?;§0n5 2%?' {he puéiie with 3, iieliieé eemmereéai éeneiiexz as "é;3je5ee'ed 2:23 eeegseeate beeke eaaeeé be eeverefi Eeéijg' £5 05 E éeeiéeg with "'i:sar:k§zig'1 "fee eafejeei 9? Ce--epe;<°e,z:§ve %V/e 5:39/isiias is 110:: igcéudefi in {he Ufiian List, ratha' ii iL3_[k~:_0i><:3:red undsr Entry 32 sf List H of Sevenih SQ'/h€dL§i€ Csngtitutiona Thereforfi. he hehj ihafujhe A<:i"£§= '§if£)p}iCE.}5*1é". 'V 1:0 the bang advanced by Coweperaiiys procesdings initiated by Ehc': CQ»<_{?pefé{«g§%é Ac': againgé; 'ihe petitianérs, s 2}.id (}f'd€I' is in appeal, ' V. I '
8. 'afipgéifi ihs peifiionexfg in the aforegaiii these writ petitions sf item. {V} sf clausg {C} gf :;ub»s€€§v':'a::E}: =63? 2315 AC: and ihs rzotificaiian égaueé _L_é.r:ée':" ' éhfé fégtii-, ::%:§2§§;T'a:%§§£:'g§;3§:oNs j fig H ;f;i"}€ Eaarrneé Cssmzssé {:33 '$33 p€§§'{§€)fE€§" Sr:
..'L§*:§.§%.Z*€;:.$;a,§a chafiengifig $16 vaigidiéy :35 the afefeaaié §:*sv§s:§:2$
-- anzj €133 aoiifieaéiazs isguafi mafia: 313% grozrisisn c:a:i:f;6::§§::§ $135 E %/ ___"1<:%?i:he;f éhémgs, e; reeevery eseeeee £21 eesgeef 95 3 eiaim ef ifie 4-5 express exclusion 0f Ce~eperai3ive Secieties in Entry 4143 _£;:'«et 1 and the express inclusion ef Cewaperaiive Secietieés ef List {I separately eieariy indicateegijhat gee " :':é5i§1':,<5s 1Ei'{;i'éie3::sa.I' V Scheme was designed to treat {$0-Gpeeatiife Vais institutions distinct from eer:i<;r__:2u:ienS;,_ 2 T11erefea1f'cvg...,V'§he (:O", operative Societies/Banks :5 been eevered by legislative Entry 45 ef Cevoperative Societies/Banks ie not L131; It is expressly the Central Legislation iiifie {he Cooperative Bank which ieT:S0eiety constituted under the Ce~ee£efei--ive "ef éhe State, en par with éihe Cerperalie 3aIi§§S_f::s3:.i;he"'puif§eee ef zreeoafeegzg sf fiues {rem ihe 'V"e.g::Q.;/gér :_;m§er 8/3e gfeiifieiezis ef Seetéen :3 sf ihe file'; "flee :':a*£:*a:;dae.iie.: {if ..;€3%;.:eee:*e.%:izze Basie into the gen makes {hat erefiéeiee eeeagrzeni ie iihe yeeé ef "Size iexée e§ £226: AC': azzzei fie éhge eeE:e:':':ej.e::{§er1y§eg {he éaei. 'I%7'§:e Kereaéeka Ce~e;aerefiVe _ ;':?%:*eie§,§'ee E12: fie e eeéé eesziezieeé eefie eed ii ereafiées azeeeg Society fez' any debt; Que io 27%; U;f?':d€;' Sectian ~x§1;1€ Karnatiaka C0-«operative Societies ACE. E'; is a availabie :0 the C<>~operative SQCi€ t'1T@S .' Cg"
operative Sacieties/Banks cannot Central Legislatisn and §h6y>[Vc::__;nn0Vi'-Vijé categeyy as Corparate Banks offienforcing security intsrsest. The cannot be 3.
Banking C9mpany or a take {he same colour fer the «ejusdem generis is attracted. ":i'0 scheme, scope and substangié fieiegated :0 the Central Gove;':::me'::a: 'g->5; $6-,;§i'is: 2f:':. 2--{..E_}'{'c}{v} sf {E16 Act E3 sxcassive and a:bi€:'af'jv_f Nd"§:_iiCE€:i5'n€5s. Ea} exersisse GE" dfiiegated gowsrs are s:i:§ {»m»_A---?.;s};»;?a:i§a::ié:':*t.V Fhsre 33 H€}fi"}if},g in {E26 £9? ii} Eiméi '?'Z'3il€"'E;f}_C}:'xr;*T.:'3:f"'«§.1§ft ffhsf: iiffirzirai {}evem:;§:eI:*: as 3:9 $36 :%*a:*::€x3.«*0:*%: 9f 31% 'paééécy G5 iéié: Aiégisiaium afid is éagigiafisfs ififfifiie 'E'h$re§@:'e? 3:333 iSSU;§' 55;. gaéifiaaiien as SEE §%:2:3;€2:u:'*e--§: is afbitrarjg amé naéi _ §j€%§1é=*{}§E&f§€€ Wiiéé {hes priaeépias 0:5 ai'1€§§§E':§;' :31' szzbfirfiinais '-»__ 'Eégis;Eai§V$ fmnséién gevsrfiing Q36 fifiisgaiésn gf §Q'»%7§31 31$ 9*;
I €X€§€'§fS€ 0f deiagatsé pewers by ihé Canirai G0v§rfi_%:.:%é:1: by Sestion 2(1){<:}{v} 9f the Act is :19: Within the poliqjy cf the Centrai Eegisiation. C€ntr5{:Tbb» indicatsd thé class and catégories i0 be déait by ths Act. The type,-4_§1atfif€.v.'fii3d is be specifi€é by the ggrtue of its delegated pewers CaI1I10P§.'.i;3€ b%fik§, which the Pariiame/3*}: étseif Agannot A{}Q$:{"{3'~FV iaw, Thersforeg he submits t_ha£f;jT.%£he ":%:ai<if1'"no:i§fi;:aii0n...§a1S0 requizes to be ii}. '¥e:' <:a:>r::':.é;,.. Camienfied ihai aiéihaugh Erzirfg 5:23 'E25: E §'€33.i.€_SV]:£C} it;:{:0:*pe:a'::Zc>n% Eréguiaéion aaé wmdiizsg E39 :§§._::':s.éi;ig _€s:::§9€at%Q::s, iaciasiing bagging, izzszgrance améj "'5:::~s;.;:e;a: :7:;"ér;:f.%7§:;':;i{2:;3 $323}; ESE masiazdiézg €§-i}§§'§'8i§V€ Sesieiieg, §m§':*.§,:' §i;_§' iagaéissifisafig? c::a*2f€z"s §§§§Si§§'s?€ :3Q§Xf€f' Em feiaiiészz is h "B.:3_§Z'::§§§§~-*.:'3§E €326 Cenéraé iagisiatalra aaé 9:: $28 Pfiffigffififii, IE2 "$§:e':*§i$€ §f execzgiiéze paws: in €516 gyfssézzi, Cass, vxhich is ::§~ 48 exienshze with Legislative pewen is under 'the The law reiating te eenstruetien ef the §,eg31e1a'£§V'e~ various lists of the Seventh Schedule gewefi 7a::d.;§e'~ . lenger res integral. The doetrine'.__ efe pestulates that where a partieu'1e.1j.VaefieA:;'is heigié' ; it-L'iS eorfierlnerst ef pewer the 2 fseheduiee the iegitimaey of the aetien with 'ea "view en the pith and suhstahee of ajhfie --examine the {me character of the and effect, in erder to determine ha valid exercise of the power er whether the exercise ef pewer "';?¥2'he:'e a aehien is f01l1"1§, "fie relate in eeéhsieheeg *:«:;«...::, iegie within the eempeteeee ef ihe "E.;egie2e;iu,_;*e ahd ee:éSTe§é.§e2":%i§3,? ihe eeffespehciing Exeeutiafe, Ehe "'Aea.%i'z;§.e_":g:s::"::v::>g3 - 1;: he heéd ihfra eires, even if the same inei:ief:taE,_E};? téeriehee upee. iegies which are euieiée "izhe §f}W€I"S 'W€_'::=i}:1§€f'Ffi'€i.%¥3}7 ihe agpheahie Léei ef zhe Seveeéh Seheéeie, Ehe "é"::e:e""§e.e%i fihaéi éheee ageeeere fie he 9. ezzeeefieieé everieg fie '""é'ee§eeé; ef aeéiee 'iaigee ae eee {he gewer eemfezzed by {me Lie? 49 with powers c:31r1fer§€d by aaather 333%; would :1o:l."3..ll°ect._th€ validity" of ills aciianl $0 lang as ths pith and .% falls within the pewer Cenferréd b}:g'.;h6 Ll:§f'Wlll'C,l9i"0p8ra:éél'» relating :0 £116 Legislature/Executiéies C:C*13.(;€I"l1»§§d';~ flfflm me dactrine of pith and subsnianfses t:A£€'VélCtiGifi.v:'.l;3f!: v:h¢vVCenfral"
Government in issuing the alsc} valid uncle? the ClOC1:1"iI1€E of p;;fix}65s;.VlA;yiihg:r€b}? fhé pawer of the Legislature _a.:1d power of the cerrespending the Various Lists is recognized lélmcillary and incidental topics _ power. li; ls also well €stablislle.€l!?:§1;2lt 'ihfi Ligts in Ssvenih 3€hedul€ mug: E16 rrsaé' ":.lil:.€f:' Widgélgt gasgibée manna', Sg reaflg {ha '--;>,{3w::v:l'e£_'-~C€32j:r3;l {§<§:%ér:1m€z:: e::<i:€n&s is Barzking wlzézla £5 l§lfi::':§_:.é5 Gf Lia: l gf Seafsmls Szshsclule. la 8% far' as €3a»e,§é:3:{i_x;é'73.Vf;%bcis:3*:i€:s engggeé 32:': lganliiag acéizriiiag are ¥:'az:c€:*z:<%:fi;':.il:e:g C.l£8§§}--" fall wgéihér: iha gaéé E::§:*3r, 'lbs Camral 'fisgfaéégmeni will §:2,d2*spvJ:a'§Ey have garisfiécéiiarz ever rhea: ':9 €:5<;"i€:"1lL ihat {heir a,€:{§"€l§;§€S ara :3? félats fie, Ezazrikzing E// aeiiviiies. The Very faei the: Elrrirjg 43 2:25 L23: E eipeeifieafiy eontaine wards excluding C<:~~operaEiVe Secieties_--o:rhefea.$' 45 of the Said List is not Se limited Vi:;<;?_icate-S"fha:§_':t}'£e'V'Ee:2E:e;é_ie'~ net: to be eenstrued as having any ':~;ue.:'.j'1'Ei:ni1Ea1;i0ri§' Tiiey pointed 01.1%; that the queetier: .im%Qlved" in 3:17.13 xé7;fiiV.e:pv3f;ifLiei1 was L' not inveived in Greater Bombagwflegcgerciiive Ltd case. However: the Supreme s~a1Lci e~9,ee specifically took.
netice cf the impqgned C0~operatiVe Banks within ineiusien to hold that in the in respect of Recczvery of D€b{:§f;.'E)§ j/:Fi~;1'en.eie.ViWfi1s1:i'£uti0ns Act? 1993, C0» e§eraf:iVe"Be.::E:;3 Within the previeiene ef the said r 3?: a"1£'i?§V:'ewf<}'z*e§.":f; i?:»?3.s eeeiemdeé "G23: 'she aferesaid '§f®é£'iS§f{}§§,S;i8'"~ifliffi zjiieéef the faei amé fiie noiifieatiea éseeeei; 'i;H'{':€§:'iffi€'._SE:;§f§~,_§f}:}'J§S§(}H ie Eegei ené 158336 and de :10? suffer fr*em_a:1§; §:;f§§'::;':§: and ie 215:': Eiafaie is be egeasheé, /, 51 ii. '§he iearneé Singie Judge in ihe judgment did meet netiee dause {V} of Seetian notification issued under the said H}:'ovisiQ*:1;"v' --.:Z';11'V""£h3:: é;he'x learned Singie Judge has held is, 3 (:.?.3e~0jpe&1f.fit"ii*e_.:B'2{fl§;' fall within 2. Banking Company definezfi {:1 and therefore? it is met a Bank the fight ef the aforesaid statutory pr0vi:s.j'kj;r1s3 is eereneeus and the judgment reqmffes {Le POINTS I~_'_QR 63¢-Né3:p1§:R_A?131LoN;_-V _ E2; £5: _"'3{Jhe aforeeaid faeie and aivai eerzieaiiene, i§:eV.,§Gir:*{e $5133: ariee far eur eezzeiéeraiéen are as " ,3 ' "_'§f._%ae;i?§er isiem {3} Q? eiauee {{3} ef suf:2~:3ee::'s3z: {E} sf Seeiien :3 ef the ziez" :13 555533 sires {he s:'L'ez23:::':§i:e;"a '' '{';23Lf: éifheéher £326 pmaéigiegzg Q?' {he 525: 3:: paeiieuiare Seeéiens 23, 34:: E F', .58 azéfi 3? are €é§§§iCQ§3§€ fie €:'Q~ 52! aperaiive Banks cengiizuzed sander {'?:€'4;1¥'§.'.Q'F'§f;Q~§§vaiCQ C@~epera£i:2e Societies 362:
{3} 'Whether the impugn;éd'-. " {$laEt«é:ci ' 28.01.2003 bearing N5;s.é:.§_:*'é5(E}- Lissuedv item {:2} af clause {KC}.Qsf'S;£,b~SéC{iO?1f1?;{)vf':SéC{i{)2"Z 2 is' liable to be qggashedw-----~~ L3. 'i':'Ai*:E~;[J";sgi§?é.tixfé"~fi¢id in Censtitutional terms has to be éetermmeti 31:1 'iS:F;§i%:S"Qf'.z§_%€t§éf}:€S 24:5 arm 24% and Entries 43, 44 a:<:g¥.45 Sf E' '3..f1§ §:}"é:££.'~§? 32 af LESCE 3 GE Swenth Scheduie ' ;:,§ :§':;ie~ €:e:s:%;;::§:z§:%:::a:: <;§§%:§:a., " V, " '=.:ra&"i:f:;r; €erp@2"a:z'§n§§ iracéuding Efififiififigg Engagrance §:;{f%%:;3«:§§Vifi§« «%%é_§ >:i§§'?:::§ E38: 2 T§'€?'idS ag ugzées:
$3, Iacargagrsaééang rggazéazéagé ané wiadizzg up Q? 2/~ and jinaficiaé corporaiiorzs bu: net iE"i€'§léd§TZ'gf .(::{} operative SOCiE'{i€S. .
44. Incarporcztion, reguiaticrn and Corporations, whether tradingfar b%é:;i,_ 'with;
corgfined to one State, bi:-u: a_ [fiat >'*fr_{:c:iz;ciing',;"'«... universities. .
45 'Banking' Entry 32 3? List E reads 3§$'M%i:';d'€17?;i" =
32. fnc:org;:iCzjczi1'o:":;V'}*eg.é;Er:;iiQ}:--_g:zrz§+:i «Vyinding up of corp0rg;_:i}:ns,??'Lbther' .tFu::h t_h.ose 3jjéCified in List L and Li;niv¢%.;<:.itiéS*; >2/'L-f'£*i.'F:i£'3€')I'}':1£;'I'ClVi?§3'CV4?§ irading, literary, s<:Ee'r:ti _z'é; -- réi:§§i0i:;S» az:rii""w3:?1er Scrcieties ermef z:L:_s:3(:5u€"i:>fis;=a:Cé4Qpér;::'ive gecieéies. E5; ii ié ":--1.e<:€ss:n'y ga careiuffly see whai :in€s€ Eilifiés a§é::«,, E.1:':f£:°§,: éE3"<§§€33s Eéfiih ingcirperaiien; :'*§gL:§aif::@:: afsé xarisdiag é:;;V'é::fV«::é;§€:::g '€5é:4p§ra'?:i§::S' Ii; §{}€$ fie: dssai wéiiq bankéfig as sz;<:}'i'." <ié3 "$26 333$ ezziijyz $28 v;e;t:5's~§ éinséudinfi banking? .L,iz:5<':§:3:1Cé 3.314;? finaasiaé cargaraiieag' E23226 :3 be uméeygtaad ii":
§;§"3;€ {:a§i31"{€X?; 9:' $336 G§%€£2i1"";§ vvgrfis *§a<:9z*p0:°a:tie::§ ragaiaiisrg 3512:? '§ 54» winding zip' i.e., Enéry 43 @6933 with :?:1carp0;*a2i§<:sn,_. arid winding up af a. banking insztituticvn, but suchg Entry 423 expressly excludes c9~0p€ra\:iVe'~S§:c11étie'::.VfI'£2n9:". its purview, Similarly, Entry d_€al§s Stags Cerporatiensa whether !;rading»'0r;'_n0t éenfined ::v{j".i{;:.<€:
expressly exciudes universitifis. this when we lack ai Entry N032 infiorporation, regulaticsn and wvigding Az;_;t:_f'<';f_ gither than those specified in gj-1;:r1ii§IE3';"si'f_L1i8':jSV,':'V.'u'niV:;c0rporated trading, fiterafye §ther socicaties and In ether words, what is €X€2}Ll§€fl ni§% «iilé is inatiuded in Eyziiry 32% '§3e:'efQ;j€, 44 of List 2 912$ Enézy 3:2: of Lia: C!§C%'.',.§§'@?;».'--{§€f:E%.§A wié%:VE:9;fi§<::i::g aciiviiy as such. ii is '$633336 "%:a§:§,{:i:g fiijiéis }::..Tpi;.:ce3 as Separaie 932:}; 3% Ezséry 43 "§hs:"efsre iii Enzry 44 9:" 2.33: i arzé in Emry 32 GE 2.331: E; _ )§:>_.3~::§s:i:':g~~ azifévitgr ca:*:::e::a': 'afi 353:3} izézéia "I":;<;:Se Ezsirieg exctiuéfi I A3 peigisé Gui $3}? '$38 Eapsx élaurf; 3:: pgragragh 83; 31:: gaase sf ggggzgg Bfifisfgéfi' C€}@PERé'E"§':fE EANK :;2"::2.3 :5 a %;,w $5 csfiperatixze seciety E2218 a Eimiied cgmmerciai fu:1<::_j<;>::T;'-.i_iE;s::'; ii is (covered under Entry 32 sf List H. If a CC3~C>§€IT?¥§V§:i';?€:" Carrying on ::ommercia1 function without an_y"'1i-::d:1'taiiQn, i:f1_€fl,;, it falls under Entry 45' Thereforfi €53ségiviiét?1§}, 1:j'ahi>ii:11g"E31115 under Entry 45, whfither the.__sai<:§ Q§>f11m€;x:iéd vf'l}I1C'_{::i€i}Iv?1' carried on by a e:0~0§erative s<§<:.i_ei;;_ or by fany Njationahsed Bank 01* a banking institgtion, T 158 Apsx Court in the Case of RUSTQM ._:§::Oo;?E_;?5 Vs. UNION or INDIA, reparteci in éieaiing with ftheae entries and the W'Si'€§, "0"a§;R3T:1gv"'i%:3L}s h€}&é_;as m2,de3r:--
._'Z'?:<::> €Xp3'"€SS€OFE "§3an§<z';2§" i3 (335 giefirzea _ Efiééiéézrs. siaézaéa e.>«:<:epi Efiéf Banking A =..4__V§e§La? gn{i§:r: ;§iC£ 29é§, if mag; Es resaiied {hm by Séééien 5&9 gj' {has .5735: "éa2":§ii:':;§" mgang '§Z§i€ " ' ._Q£cvép€é:*2§,. fez' 5:539 gurgéasg af Eerzaiing 52;' §?":&';>*€S§???6?"'§£, VV * Qf cégpfigiig Gf mmrzég fmm {he pabéicg régiéggaéée gr: 56
demand or eiherwise, and w:Zéhdre.wabEe_'v»§g2., T'~. cheque, drafi 0;' otherwise". fhe definition . A' include other eemnzerciai activities which a''b__:inviCin§j % inséizutiorz may engage in. ._
37. In modern tin/zeS"'é«:2:I%sdica .elS'ee.é;>hei'e§ ezitraei business, ,banking*''' shmehts rehder and compete irz. r?«A€'z*:,'?i6?5?73rj¢"'§§"'--Vf'§;"h variety ef miscellaneous semieee Fer ee;isi5:.iy.ents, the zest for c:1?,e:e2fnfz.inir§§ aeheit "?VkA$ezéiZ':€r1£g_ff'n'1_eans in the e0nsii§1:i?er;dAE:_ ariyimeommereial activity which engage in? great efjveefeéfiiyievépill ifitz«f§dz1ceeZVVV€n the content of that e2e';:2re'3'fsi<::;1*., VV igheh bf eonsiitutienai erztzy in 6: Feéiercé V Ceér;s4i:':u'ée{e§_; which eerees ea: «CZ jieid ef ;£eg;is£aEie:2. d{'3§€§'§d ugeh 4;: mere sefisfezeéerg
7. ._ Eaagaés.
'V ' Ehe Zegésiefiee eniry in Lie: 3' eg" {he Se:}e§3':?:Seheeiu§e ale "'§r:3;r::%:§12*zg"' cezd 3'3,§€ "Bar§<e§"" er' "E'v::;?é£{s Eb izzeiazajie wiihie éhe eoerzeéeiéeri ef {he '"'~e2g::>ress:'ee; *'§r:2,:":§<:i:":g" in E32333; €§ ef 39:3; $2 §fl?,U€§' fie héegéséeie 5%: reeeeeé ef ail €:'O{?"Z§?":€E'C§@5 aeiiviiies §'?
Leiziefg :1 banker by {he eusiem cf bt:"éi2§€€I"S§"~.§%'<, ~~. auéhorizy ef law engages in, would re_$iu'E:«' rewriting ihe Conestituéion. Investment of % iegislaze on :1 designated éQ;3i;':»~e0z:ers ineicienéai 50 the topic. A E€!giSlG:f'i1?Eg enthfg.' in expressecl in a broad dszisignatéori'=indi<:a:is<z§z ihekj Centaur of pierzary power'-flash: reeeisge 5; S conducive is {he widest anf;g2lfiaz.ele,_,"subject .h,QLQ,eL%er tie iimiéations in .:ihe§Vje.cie3g';AZ"schen1e which CiiSi'T'Z7:)LLi'€S iegisiative the Union and :he 1.:;rie field of "banking "£e:"i:*i;Clude trading activitiiés ""n<7>?"i?§€i?ig~*£né:d;énz:az to banking erz.s;:'rCb:a:?h '%;:p0fifi-:ifiefiubstafiee' of {he entry "irade and eez12:ne'r:--e-'fAAi:(: ' ' , §Gefr£2I:{_E: QF P:'i'H._;§gN3D SUBSTANCE
-.i;'1:;_é"'A_§e:<; Sam: :11 the Case 3f 3 S KRISENA gee
-- 232 §ée%d ?%S .;§.2::§':.&€:§.':*~ $i;?--§::.i1r~2:,3§'"'§«¢:§:é;'L: --sf:§:*;%-:f*E QF gzmgas repmee 2:: 3:3 :95? Se éw//,»/"
"'3°?1e b:::s.i<: assungaiien an wézich argument sf the §a;:{;2eiic::2t$'_3*es£s is {hat Qf Zegisiatian seé out in the sezserai grecisely drawn as $9' be migitazzziig e3;;':;i9_ié;ié:Zi;2% then, it be. F6'??t€}?¥}.§§§*f€(}1.«. { censtniing (:1 federal ii: iiiwét «' essence of such {:1 Consfiét§ii:3t;- _:h¢::{é:
§ 5: disivibmiisn af _ the le_g7_:§§£::_if_'iv.ég_ powers. 9f? the
--Fe¢ier:1i:iGfz_ .b€::D€é§fZf--"fhe rid 5:53 Prczfiéiicés. % We' 'scheme of ~ wan .:--:*:z§¢331 uzhefiq. {fie .;dsj_ I ' _ V' ;s'i;::,§*;;:§:%t2%:_4.%;:e;r:e;+:::§:::z A5».::i:,_ _ 3:5. k%fea§[ra: 'Car:3££:u:ic§:%:'.-- far & 'f1:e%¢g¢::L% :2: 33.32% and 9:2 {fie aapseg gr: ' ' " ' * E?.
5% to this? situation that the Privy Cottneté evotveof.'tE§.e:<«.._T"t-- doctrine, ihifti for deciding whether can totgtiigrzett ' legislation was irztra virest regard must tts pith arzé substance. That is to"so.y:. fa svtotztte found in substance to relate to agtopio tzzitlziti tfte'---.. Competence of the legislazfuret ttA':;ftouZd be to be trstra; Uires, ever: thou§:}t"vit mioizt Vi:'2(:ioZerV'it:cztVZ;LjV trench on topics not ..__tts ' "iegislative competences The' tfieotushment on matters beyond its ooniptetertoev rr;.zaLLi on element in determiniztg .:_/;)he:§fteif oolourabie, that is, ;j;§f;€if§t§é?'__w_£re. t:he1g_tu;9e-- a law on a matter t?3.eV'legLslature is, in Z3*ut?'t;"??2oi27e;i/%::fi.;g ort'._o;""§ubject beyond its ::ot:2petenee;"V'VEj§oAt;' that is not the position, titexttéze does not ojjfeot the vires of' V .l,o'w "wen as regards tfse area of V 77 .. ..... V4 9 e no j ,;3;j2:%A'Vv:J§et:e egos gee Eaettt 33 tmée§':~ _ -Iepex Court to the case gt STAEE oz?
'geegsztelgée Vs; o. oazettoélfi gee ;§.§¥QTEfER eegéofted 8G "fifier the dictum cflord Selbome in ;. A' ' Empress Us Burah, (28:78) 3 AC 889, efi--qu<3'tec£ vsifzdn appfiied, it musi" be heici a::»~~e.e:tZec§ ti'?i:i£€VI."fhev"
Ze islaiures in our Count assess'--elenag. '.<fi:::e§':é}"*---.. Ty}? _ 1 , _ cf legislation. This is so Veperz «:zfz'er"a'he dz'vi'--;9:iQfn 'of iegéslative powers, subjeet to "this the supremacy Qf the __ZegisZa:w'es.._is.._ve0nj"ir:ed__A:«:a.'ithe {epics mentioned "E?nt2'iesi-- Conferring respeciiveiy powers an-T-'them; it has been ruledégjh .mang;Weifi meant to be rruitqdfly 1<:'_r:e s'§m%j;et"i1zV1 e§43VVV'n0t really 30, They ve£nd"geVfe to be regarded a,s.--e.:2m¢:;az:5 0]" categories. When infin Such enumerated powers Cf §eg2.i§§ee:iof:'wVeXieV: éiéere is 5: eerfiie: beéween :'z'z.:_{;z§ Li:37z'5:.V_v€: as Ezeeesséarg is examine {he impugned '§eg§eE:,::'?§en i%:"'£if3...;2:E'§/2 and sufjséczncee and eniy if 'A "éeE2eef§ §;':Ij§'e.::vd stzééasétznee feiis sabszaniieiig within V an ¢::.%2:n:2»zes eenferring Eegésiaiive geewezi £3 " V Size §e§:§ieE;:i:'er: eeiid, e, séiggéz' éraneereesiee apes: Q sésfiezi 129:: eéfzsierzeiéng, @1215 was Ease' @6235? eg; .. £113. in Szzbremanyare CE/zeiiex' 2:;
= i'}ez,::zda2.r:, 39%?) FCFE $88 e: 9233;
{AER §§éZ PC 4?' e,: 16, 523} ix: ffaefe-iieaeirzg wards: 53
"E: mus: ineviiebiy happen frem {time to ihat iegisiation éhough purperting £0 deai A' subject in (me Eisi, teaches also an a s:é'bjee:*eV.€f:
another list, {me the d§@"eren£...provL§'ief1é"
enaeimen: may be so eiesely i::ierf:w{.z%.eCie»th«::ifbZii*:Véie,___ A adherence is a strictly verbal ifLte rp.retat:ei; .eUOiLld':'. . result in C1 large numbef Q{%':2:1ic;Liuee being invalid because the legisZq_:_z)§z'e__e:rz§1etifig'* «fhemvvéinay appeai fie have Ze;q.iS«fate.:_ei VL"a;..?;'b:f1é,\idden sphere. Hence, {he ruie wilicfz: by the Judicial impjzfjned statute is exan1i}.;;ed:i:}Ee__. :j--'3;)f£?i:'e;hd substance', or its the purpose of :ie:er:e;2é§z;;g :¢;;:?<:e'{'?f2.eeV2"- it §.é""Eeg£eiaiion wit .-V respeez' Seiiesfe 'in fegis _z:s:'._«:r in éhai.
'§?2z;_é diériuzée: éiias exgefessig eppreved arzé "}?a'z§§§ie§i bg"'§?<3e....'J::die:ai Cemmifgiee in Prafuiia 'A E{;};:%:.;cL3f §z>;..V5ar:§£ sf C{}?Z"iF?£€?"'€3€§ Lid, Eihuineg $4? Ind 3 $535 2&3? 353$ $8? egzd the same view has 'VV§3ee::"e§ape%eeee& by 53:53 Ceuri en mere titer: ezze e;;:es:§ie'r2, 3:' ie eggs/geiig zeeii sezéied eke: She gee:/eez' ie V' A. , Zegisiaie en e §G;T??:C ef iegieieééeztz f;'£€§'§"i€S 29:53': i: ehe _ §3e:,::)e2*' Se Eegéleieie en era aneiifiezg ezeéier zefziefz ear:
% 52 be said $9 be reasonaéig ingiuded in the given.
E8' The Apex Court in thE>:.J€a~é_'§t3f POWER CORPN, LTD.., AND Q1*HE1i's STA?'§E "OF ASSAM} AND ANOTHER repmed in "';*2:bo4) 2- .Sl)*.E'f!2Ef$A'1:'§ COURfl; CASES 552 held as undfitgf "In ajederal.Ac¢;z?:S:z':ii1itiQ':;, {here is a divisian the Central and thé" Controversies often 'the; other iegisiaiure is riat _ legislative power, and €féx€3'GéZ»'€'f?h:'%'"i§;1'_§'}:'5;_:§}?;é"é";>:é§z€??"S carsstituiionai Eegislaféve fiawééigu zf'és;_a§i;:3: 'iféé iiiamzie as {:3 which Saw V__§:"L':}C%u§.CE §rév€:iéiI: €&S€ w?:€2"e E955: She ifrzian as V" SéaQiéLe§isi§:E*;;r£$ have :%::e sampgzisnae 3 Eégggs, éiriiéie 25$ preyida 533$: 23" any *Vf3§'aé}2'§§V:fj§:2?: i=§Q;f {Z {aw made by the §€g';§§:§§§,i?/é?"€ qr" Q Sieéié 'é5;';rep2:g:'z:;:":: :9 any pmzjigifisz gf 252:0 made by j Fariéamené, which Fgriicimerzé is CG3"§'£§€§€FL€ is "~;:?:2£:,€:', 9;" 53 gig: §m:;z's§::,>:2 an an €}:'fSii?'2§ Ems; 222135:
"res§€Ci ia @233 fif 5336 zrygiisrs azzumgrazééd in {$33 Cenettttent List', then, subject t0 the }3TOL3iS{Of153~.V:_S:f,_' Clause (2), the {aw made by Par'Ziament~'**sttgztlt A' prevatt and the law made by the tegtsZatu:*e_joj': State sheezil t0 the extent of t3"l€'.f€f§*Ltdgfl::7.;'tt3t},t Clause {2} provides that where: a Zazt73nia:.cte_.'bg AA legislature sf (1 State with resjyeett. to enej the": . matters enumerated in the..__C?3nettrfer21_t Li.st"e0fttctt'rts' any pravzisions repugnant___ttj wtf1eV._Vprov.z'3'tone qt? an earlier tau; made '?:tt,i"'Paritan;eht..§;f.:Cz?7t existing Zaw with respect to the ':tHen.~,._ttiie:V.£t;1'w so made by the legislature Statie-..§ttall;,'g:}*° it has been resereeti of t:h'e'V'Prestdent and has z*eL:*eiued, f:)'re:';ai'£,izi the State. E8." It is from time te time tttat ve232&Ci'F?;t:€:'TE:VVtF?,Qtig§"t".§3Lt?'%3Q?'iiF2g te deat with 0, subject ~ '€22 :£:%§"té?Vv'§,t'S§ teaches' ates en es: subject in anether Eist " arte§:_;2.t'tz'reVa feeie Seeks as if ezze tegtstetture is
- ttte tegietetttee field ef a3"§§_f!'t€§"
'' ._"'VEeggt$te;té;te. Tttte mag reetait in e tatge tstzmber ef ééttetcttzteeét eetztg d€€§s:t3"€§ t::?t££?t"t3§§i§:i§i8?EGi§ Egeeaztse .. t'tze"'tegtsZate:"e enacting testis may etggeeet to have V * ._ _§.egteEe,teé ttt @ jtetct resezeed jet the etttaet' tegtsteztute, 'LEE; examine sefzether e tegtetetteeza ttee inrgsugrzed on the fieté {if ether iegistatures. in' or in substance, or is irzeidentaii keeping i:1~--i§ie:J_§' , A' the true nature of the enactment, the eourté Eizczve evolved the doctrine of "pith ar_z_el.:~:_t_ibs tcifteefgr the':
purpose ef determining ttvheittet-..ttA.»ZegiSiat'ien___ it with respect to matteffix in 0ne..itst 0?' e5?i€'.'A'O't3'Ler.'i~i ' Where the question fort cieitetmineitien' -{Si particular law reiates tg partieui--a_r _ siitbjeet mentianect in one orflthe .Ae'thi.evr;'the Courts Zook into the substance Qf-I if the substance _{3j7.the the Union List ttzerz ..Vez1eri$i::eFiment by the €;'Ila;Ct'1;Tt€I7i:t §£_3VT.t Listflitvould not make it i;*iz}éii=:i,. ':j;fE'hi$9:fi.;;;;eifieig§='Ee eéifize' be established by the Privggzv it determined appeats from Caritgfiét er». A"a:.A.1st:fe;i--iei" Jirtveiving the questiea ef V.iegz'sic:ti:>e eemeeieétiee cf the federaiietz er the '°<.$tt;tes; {Ii E{'%;£:{:,l{5:EI;'Ef...'{:'§:~)§/EZ'i:'I¢§r€$& Thie a2§QCE?'i?"é€ came is be e$te,i::§ie'?:eci in izidtci and tietieee its geriesie free':
ezsiqeiefi by the eezirie ieeiueiing the V §;'ig_ éjeiineii in deeiiirig with CGé"1§E'$E?€?'S{€S arising it esttier jeeieteitiens, Fe? eppigirig the erineieie ej "eitiz ewe SL£§83Ci§"i:'3£3%? eegard is te be tied {i} te tiie _,5e:teéet;ee;{tt es :3, 2.i?§'?.G§€, iii} te tie meiri ebjeete, erifi {iii} tie the eeegje aeei ejieei e,/it ite leeevisierzet é 83 332 E3: legislative éflify beirzg €Xpf€SS€§_...5_1;l>.%i:l";}1:f'€)§'.fi§:l désignation indicating the Centaur Qf plenarjall-._:po[_w=eVf I"(t3C'.€'lVEi 3 mciraning conducive to th€£léX3id'€s: a,mpli.tl§:dC.;.VS'u'bjé'Ct however to limitations inherent in lhelkderall _--sc'l1e1ne":.v{7hié13V clistributes legislative power 'b§t;Veenv. thé Rérxld thél constituents unit. These Entrigszsg" 110 bl: mutually «Exclusive ars sometiméé occasionally Overlap, and aré i<:>:'b__§3 simplex of broad categories. time to time that legislatiQVn.i,hAé'u.§lh filo' '«:lez3.l"l\A>itl1 a Subject in ene list €{}uCl'1€S:l._i3.lS.{)' lalzoiher list, and the different gmvisiang lsitlge e:éaéim€:§f_.'LVmay 33$ 39 closéjly lnterfvirlned thai V l3l§nd,.{%é;§lss:rencé'%@_.a S'§£Y§C?;ly verbal imiarprséaiién wczulfi regal?
:3; lazgfésl m,;::{§;:.:::' ef Siazues l3€l.F£§ {l&clas.:seéV iriazalid bscausé ihé l#?i°§f_§S§.3l1:1};i°?-x:«lléf:v'£_:_8;{:?§"'if§zgT them may appfiar 2:3 l";2€i*'"$ lagislaieé E23 3, _§a:bié£'§:€::--._'. Spléezé, 'Eh fiéaamlrze whaéhsr 2% lsgiglaiéan has :£::;§>§31jg§&V""e:3, 1:336 fislé of Silas}? legislaiureg, in faeé GE' Er; l --.Si§i§S7'i€1'::C€g Q?' :13 inaiéeyzialé Zgesging in vieiv Elie Ems; §§i3C§,:3;§'€ sf 5% the sngcémeni ihé CGUE'{S have evehiad the d0<::'£ri::& and substaricé" far the purpose of detérmining'i-zvhfigfiiéré legiglaiion with respect to matters 17nW;<)11_'}e li;si"?:2'r' .Giher;'?-1:02 ascertain its 'pith and substance'; Q1i"';:.<;; 'tr.1_,1€~ _ha,fu.E'::A é§:::d charactsr' far tbs purpeses ~'§f ~._.d€t€I'I"nif1f.Ugfiwiififfhél"it is.' legisiatien wiih respect ta "When in an organic il."1St'1'iiI;flé:1"1'[. A "e:?£'§:zfi'i1€;rated powers Qf legislation exist am} rivai Lists, :1 is necessary to in its pith and substance, and substance falls substanffiéilig? Qr_--:E;1Vtries conferring legislative pewar, ié ':}}Qe slight Eransgréssian upazz a §'§Ef25 List; nsififiisiafiflifig, if a stazute is {Quad in substance rssiv-3_ii% :_:3.a=~*§0§3§s véiiiéézz {E16 5:'GHE§€ii§E"i€S $5 {he Esgisiaéuya ii 755 ":9 %e inira L/'%'?'"€S§ even éitmggh ii migghi iz:€i::i%::éV€9£§}§ £§*§:§£§3 9:: ispisg 319$: uiihim 21:3 3egf§s§a'i¥J€ {i'QE"I§§€'i€1"E(3€;. The axtszzé £25 £323 €::5§§acZ?z::1€:":£ 33 maiéars ___"W§2é§:E1e3:' fiéfi Esgigigiéen is €§I}§=f_')'%;1'8f§§€§ thai :39 zxrhaihsr in the :: %:y<)Vnt§'~A.£i5 §C*€3fi}§€?:§i'}{3€ §"£Z2'i}7 be 831% eiemezzé in §€'€€fE'E}§§"iifi§ guise af making 3. law an a matter wizihirz its CGI:1§$T;f?j§"i€4é;~v.'{I'§€ iegisiature 13, in i:'uth§ making a law on a sub_je%:t COH1p€'i€1'1C€. But, where that is not posif:i{§:1',-- faéf V Gf encroachment does not affect the Vi_r€:s§'0f'=:he Yaw' ~:%§';zgri:1V;1s yegards the area of €ncre:>ach:f15~r_;i§ equ;.§I'1fy'._fi@z§£1 éetiied iha: the power 1:0 iegisiate an a i€§iS'i."~it:id:n cfirries with it the power to Eegislaté fiffiich can be said ta bra reas0n.31§>1y* in¢1u_:i @:i given: Thus Courts 3001: mtg the Thus, if the substance of fhe Union List then the thc3'..--"v<££1;:%;ctment an ihe State List weuifi §%1'3k€ appiying the gréncipie 05 "pith 351$ §u?3$ta::c%" Vfiegafd is :5} be had:
' u 3 {£3 _ §:} E§:€ €:3aC'im€:{:: as 3. X,§;'§'iQ1€, "83:: ' €13 main r31S}€:::Ss., azzé {jig is £336 gasps 332$ effect cf 222:3 gmviaéoag
-[ §B§;3Ec*f:'*$ SF €32 A2?
68
28. Eieeping in minfi $1636 principfas is: :_::°3.
éhe Act.
The statement of objects and 1fVeéLSQ'z:s'_f{::¢r {fie ézrgt makes it clear {hat While the:
progressively Complying xx7ithV»i';<f;:¥;§:::atiA(.i1:e;}. ;10rm$V and accounting practicess,zthergég-ar;§ céi*'t»2;i:: éféas. iriiwhich the banking and financiai se§'::§:_ playing field as Compared to otfv1e_rV'p_;;rtif§iV1iié1%h{;;%~*§ markets in the werld, Therf?-k;~ fagiitating securitisation of finan<;ia..§.V2;S's£%i's::*<;:f institutions. Unlike the inte§:1at.:iu::AVé.V£' §:»:j;n%:;'ba::k3 and financial instituiiens in Enéia {ins :;fi$~f4_"h3$;e g§{~f§:F pessessiezz Qf securities and SEE, Gm' Eégaé ":a:::€ws3€}: reiaténg SQ Qsmmercéai ¥I;§a::Vg:a::€§é:a:§s.§ia.s :39: ksgi gace Emit}: '£219 chgmging csmmayciai ;:§:*.%_:éf'§_;:€s7"3f;i;g:E f§f:":é§:€:ia§ gasiaf résfarmg' Ehig has raszsiésé 2::
_ s§0w §3as€, 3§: 'féCG%'€£'}' af éaféuiéing 3623.113 351% §"§}O1i§'§Z3:i1g Esvsis sf ;fé{;:r:¢L;e<:':'f:::':r1§:;g asasais 95 banking 333$ fiaazzéial insiiézgiiéansé " .E§9;_;?a';$i:*:;h&:3 fiommiiiés E 332$ 11 and £%"i§§'1}?8:}"E.§§:§fia {§e::::z1§fi:e€ éif"/V '*€;'E::~: bs":7rswe:::"s assess: as "§?;§E'"i"§§§"§G§"Ef@§E3§ ssssi; £1": scsoféamce $2'?
constituted by ihs Ceniral Gsvernrzisnt far ths sf sxamming banking sector refsrms hays <:snsiderf<~:~«:i_ t}51é:" changes in the legal systcim in rerspsgt of thése' committees have suggested enactment new'A1égis'Iefti.QfiIgfgr securitisatisn and ernpowéring bariks sV;é;héi...V_VVfin3nCi2.,L* instituliions, to 'iake pOSS€SSiOfi'vh">{:Zé_if}? sind to sell ihem Without the inteiszsiétjos ,1.th.e' It is in ihis backgrsund, is fs.§:i1iiats...séc3:rfi§ssti($.fiV.':3%fjfi%;iancia1 assets 0%' banks and 'fl/;\I?i:£1/i'V"(j1"'V*9£j:t1101lt ths benefit sf underlying easy transferability sf financisi """ _ sssfi1*:tisati0n company 01* rscsnstrscfigjnVc:cr;§§;s11f§':s "'a'<:'qu£rs finazzsiai asssis sf b&f2kS and fi;fisncia3'4";r:s:::2,;:i0f;s fig' issue sf dsbeniurss gr 'bonfis €31' assiszgrfiy i:é"::*:e naiurs sf ésbsazurs 931$ smyswsrésg "E}a:i;Z~gs;§s:i:i.fi::s.:;::':g31 irssfitsiiszzs is take gssssssism sf sscugéiiss §ivs':;_ fer f§nas1éV.:;§sZ asszisiiazsss asé sséi er Essss 'aha same 0:' Eséis V:::vs}:* ms:/gaigsrgzssé :31 Size svszzt sf d<sfs_u§'£;., Ls" Céassiiisaiisn 95 i« /, %§/ 378! with the diréiciiens given 0:' guiciéfines issued by U15: .:R$é':%:ve Bank sf India {ram iifflé is time, this iegislaiion zgrzég DEFINITIONS 2%. Tbs Aci defines thé wjord gflciilk' z?Lf $i;'E;i3v*;i§)VIj} ..2{i}(c3. as under:
"2(1)(c) "bank" means (:2? V "
(ii). ;i,¢z§} <37' or for {V} --- flank which ihe Centred may, by neigficationf " fé} {E29 yurpese 9;' {E2219 Act;
V V u"£?5e?'§';1%t?"»v4:: :A.TSi€;;iis:: 2{}}?::{a} as uaésri ' }h{a,§ "afébf ghaii have 55:8 meanifag a:3*ség'n:e<:f; 2:3 :5 :3": aiazgse {g} af géséiarz 2 Of Z323 AA ' '§€C€}§}€§"y Qf $85215; Que {G §::7;n,§2:§ ma Féizanaiai VV £':*9:s::ia€z'@Iis 3.6a 2993 52 gf E935} "FE 2121} 2 {cl} ""'See;xrad Creditor" rrzeczrjéé' bank arfinarzgiai pr sang?' $2" graup sf banks 0:' _ T inciudes ~ V __ _ V' {i} ciebénture agépéirsgzigé» ' bani: grjinanciaz. §Z%z:::£iiuti¥:5:';;. "i {ii} er rec§n$i:?i:¢'%iQ§. , -- ._ whether ~ {ii _ trzazsi set % fer the seéziriiiézcéizfiz cafrzpany 33* _ ' as _i2"1E Ta or firmgzciai % f=fli?@i£?' séswiiy """SeCure<;i Debi" means ca deb: :vhic:§:'~._€s«._< secured by any securizy interest;
2(1) z(fj "Security Intere:~tt:'* is if} as under: _ t ' _' "Security interest? _mearL7 'fight. TV£2Z'ii-8: a:n;d':} interest if any LUf1cefs0a1,:é:' S property, creqied iTZV_..j:Cv:1¥Uf)L£i*.,_vOf §ir:g,< .v§e§:'izred creditor and ~.._:';3;)?tgage, Charge, hypothecation, {ham those spec§fiéc:Z..in sjéctidrt ' 226 """ Béiiigkirig. R€gzi.3éti0n Act, £949, for Sf[10I'i§ hereinafiéir :*¢f€;:::eVd«%;@. é;3.A{::' was enacted fie csnsalidafie ané; amanafifhev law :*eV.ia;Lizi:ig :0 banking. 3% cemgrshensive "V.'_{i€§3fE§'§§.{}Eff§_ €}i': "'sa:§k§::;§7'«' S€3 as :9 bying aafihirz S36 scape Sf "-.VA1€§i§§13~ti@gV9£};éviéefiéuiian 33} §r:s€i§1::%;iGn$ which rssaisjys degaséig, :°€T;:ay::{§31%<i?3§:8g1& $3 oihszrwigs far iezzfiizig 31' izzvesémeni fl arzé §E::.;3 §:3 éséniéigé sths? farms sf basiaesges aizfiséfia 5. bazikéfig' '. €3Gé'"§);f}';?gfi}' 2133;}? angaga is 36% £32.23 3:: $516 $93 §€C'§l§1E 3 0f {is As':
W35 §u?::$é§iu'is:%§ §y $18? 23 :35 E963 Wéiich ssams E1233 § :/ effect from 01.03. 1986 made this ACE appiicabie 1:0 C_Q..a:§p4§§:*ativ€ Societies in cértain C8868. S<3cf:io:1 3 makes_.§V_:t"'C}{évar_V' "--:i':__1é1éf:
nothing in the BR. Act shall apply ti) prixxiargf..§g:§i<:':;V1t:§fa} Credit moiety; C0~«:3perative land rnc$;ttgagAeAbai3k'; and 'afi-y_ Gizhcr c=:>~0p€r3.tive society sxcept nix' E1516 méanrisr aI1d":<:~.__ihe :§exf.enf. specified in Part V. Part V 0% Act to Cewaperative Banks. ;':t_;:.»: ;'s'..c:_1: p1'cv:>;\A/'i§Al;§d that the provisions of th€ B.R. reiation to <30-« aperative f:§3'e3/'i relation to banking companies ' Viarovided in clause (a).
After (sci) was introduced which dafineg ;v'Cg;;apveraVi;'{:;¢' under: "$6333? =V.€.'v::%);'~O§?%3f€1£iE}€ Bani?' means a Siaiie Cc» Bank? Q Cenérai C9--a::pe:'aziz'z;€ Bank an/CE a V _ 'V ' §%'i:?j:::;{:} ~':§ ;Oj§€?'&§iU€ Bazzia " E2: ciaziéa iécvy Pfimargg €e~a§é:°at§vg Baa}: is ésfénad as ., 75% {CCU} primary i"§a--operz:ziz'z,>e Bcmfc meansv"<:;é4 operative society, ather than 3, primary <:2g;ficu.l:L:zjé:i§ _.__ é Credit society-
{ij the primary abject pfiiifiiifidé..§g*U.;SVi3?éS§"=Qf'*ij_" which is the transaction :;,F_bankir;g'I3usineSs; A V' ' {2} the paicbup shciV}*é««.';::4eg,?3itaE"<ii;:¢E féseffves af which are less ihcafane Z-i:l<h"ra:g3e:é;'3;¢:and H V {3} the byfzflézws gef; w?'z:';:h'=. d»;)' nae: permit admissiQn'Qf ' Qifhéf' $z2§O_g§§:*rc_z_1§i§>é society as a membffifg 1" ~._ ..
""" :hi§"";§i::b4cZause shaii not afiply to C<::~operat€ue Bank as C:
me%22.£_::ér_ b'y».suCh C9~Gpera;:{v€ Bank vS:zbsc%9i'E:'i§: g1 V .50 'Share capéiai Gf such my "~§'.;3§e%°a§{a%e S§{§€.§§?l.'€';L{{ affaznais presided 32; iéze Siaie ' V. 3 f}0A;:e2:'r;:%:§s*vr::}"er the pwfgsese: _ 23¢ "T3413 afarssaid §3i"®'J§SZiQE3S» malazs E: $2.633" iha: figs ~_{Z':2~5p'§r&iiaze fiarzég 9:" a {:i3)*Q§fi1"3f£§Va'3 Saciaty, HG1?£'€"~£'€§} by E,/ . §.'A:Q;}_;j'§si ép§§i$3 Iia §3nE<:i:1g campany wéaicéé flees 313:? iszicéude 3 'E5 virtue sf Sectian 3 3f ms Acé, the 516*; is made 3.pp1i§:.;:;b!£:4€::"§§ Cs»- Gperaiivs 3803:6563 Part V1 Seciian 56 sf the Ad. applicable to a C<:,>--~e:>perative Bank, {§§}~b0perati»~é'.:§3'r§iAifi Primary Ccyaperativs Bank, etc" v€£:::chV_- " businesg af banking as defines? -2;.nd€r" ihé A{3'L; "
24. Chaptsr Iii' AC: deals with enforcement; of'E3:§cu1*'ii:j}*"'ififcré:3?.;}.__ ti-§'c:c:i.;:'i<':éi 13 {1} reads as under:
_ ".:gfVvV_V$}ecurity interest, 2} ..§;nything contained in Section 5:? SeciVVi::»?:??f:_"€>?_Qé':.ki'f--:e Trarzsfer Qf Pmperty Act, »i3fv.E§358TZ},"£fi{:.~§'l§gi securizy i2"§€€'?"é3Sf {:§"€C£§'€'d 2'3':
fizzsézgr <:§;'"-.s:%'1g gsaured sreditor may be enfarced, V. i:§:':.§':§;.::§ 3&6 iéiéfiefifign af {he Cam": 8? izébagnai, by 3 _ §$'i.::§%,'.3;Z/»..44{{:?.T;::€V'::'3--?.'if{3%?" in acsardanse wizfh. 55363 pI"Gii€Si$?'2S Qf ' iérzgéeréézsing by LES ' _ ' Sari Eésiksavaée, SE13 36331265? 9012:3361 Cfiffififiééfi Qzazi §5::§ CC3~{)§€f3"8LfiV€ Bank cerisiiizxteé uzzégr 'she Eiarziaéaka Cam ?§ nperaiive Sncisiies AC5; is not a CQ»<3p€raiiVe Bank under Clause {sci} 0f the Reguiatisn Ac: and is not applicable to 8. C0~0p6:rativ€:;
scheme 0f the; Act, it is 110: intendeéato 'tn:
Bank He pointed. eat from Ss3iCi':i_§>ns «Vi 7? the definition Of 'Deibt' containéiiiuiéiiinyvbthgfi intention was not to make appIi.Ce¥:I:fi§> _'i.n€.¢o~01néintix7e Bank Secondly it was cigntendgdifiiai is issued under item {V} i of Section 2 0f 31,3 Act by the of the opening words {such is necessarily a bank of the naiuré: =*p:<:>vision wiiiéth is ssseniiaiiy gi pubiézj invaniéééndi i§3.€:rei%:::ré"'..?;h<3 naiificatien making appiicabie 3"'-*';i_:e f%_€.% aw Cn~@§éi'3;'i;iv<3 Sank: nei cenieénpiaied. Even '"s::§i%i'$:2:iésé';«,_iii:?:"sai{i pE,"@'V§S§G3f3, is inn Vague anfl as ins grntsisinn €:>s:i§~;'i? én igié.i;%*:_£::€ieé 90636? has be-3&1': Cnnffiirgé an {:26 Qenimi '§}®'連"f}§".%6i?;i, is iegisiaie in 3 fifiiegafgszg wiiicii is in3§3ei*n3iS:3i?9iai A "§'_:€,I'E':§,'E7fa"Z1. 9:: ins §'L1§§{_.:{E1E€§1§; cf ?;i"':€ E'a§€::~»; C':@'i:,:"i in {E16 C338 ni _1_f7i&R;2:Az*ER BQMB3? §§~GEER§'E"fVE giéfiig min gm goiiiend that the Cwepsraiiare Bank is not included wiihiri :hj€:V.§}:>;~Vf:':;§_iie:1 0f the banking campany in iihcé Banking Eherefereg the saifi AC1; is not applicabfig,
25. In Greaéer B0n1}3a;;':iT§§)w0péi"a_{i0e B<:7;~":i%;f ca§_se. {h_é' L. questian that arose fer c<3nsid'éfa.fVi;vi<3::V' apfllgiicaiion of Recogrefy of debts due IvIv]'.'étfi;1lii()fiS Act, 19933 far Sh.C:;"'L hereinafttéf' Act, :9 8 C0-
operativs Bank Stan? Ce:>~0p€ra1::ive Societies fell for csnsideration in the said d€CiSiQI:f1V_VaT€:EV2iS Liizder: . A «. f;NTE'PPi%,§;*;':,x'§;§*;% é:§ CLA, USE:
_ 52:} , §%%?1e:?g.er She R525 ac: aypéies :9 dehzs A " {7d2;!,€. :5; c@~0;:2:é%°7éiiiv€ §a;2§«::*s Cfinséééuiafi uncle!" 532:3 » .:;£*::S~ 295$; as:/e 22/zscs gs: 29% gm {fig gym»:
%--%_g:':,~ "
bQ9Js2*§?:5T§Qz:«:%;: £33335:
" I 4' g'§;3}H' §éif%:£iher {he Séaég Legigiaiugs is a:Z'Q?"?"駀:'fé3?E§' fa
-5a::az:: Segisigiian in regpeci' cf' €Q»Qf38§"{2{§U€ Saaigfies incifiefiéiaii émgisaséin ' Eusirzess <3 ' banixiziéz in {$293 E E//A Eighé 0j'En£2*y 32, Lis: If sf Sevenéh Sehedulé Qf €'ons:1'2iution?"' Under1i1::~i1g.. « It was answéred as; under:
"7 1, Pinallg it <:ou€ci"V"L'L».:fiot bé ;:2i'h飀 Amendments in Ch«:;p:er&..'§r'." 56 Ac: by Act No.23 1985 "'-fCo~operative Bank" in Clause A{<.?r.:§)_ '--ar¢xi; jVV--cE)~operative Bank" 8'z'.1A,"«}«'z'é:3.:f"'--..é;_x_'Vg:VV:f-'réssly 0:' by neces;3afg'«.__ qpgjlfi :9 » the cooperative banks ér.¢ifas1:*;g:ting_.1Zmé'i?L€<3_S of Viéanking, u V"£}Vré%..--.sia:*:ed above and adopting §':E'I.'E'/=QLS'4:.i:./';E? inierpretaéion af ihe V §2_;'5:;:'siié:;n§?; €:fiE1eA%'v~9E:é'iJ:arziStaius arid Enfiies 43, 4% z;_.::: §f"L:'si{___.§ and Entry :32 9f 22:3: .5; of $315 A "=SC?Z€duE€ 533;" 5516 C0n$i€2',uE:°,0r:, Z58 angwer %§:é'§3§;j;"e§'§z::g as :::2de:":-
' -.";C'a~ope2"a:i:;e Basfiits" ésiabéisheci Lands? {he §§§s2f':ar§;§§:é'ra c§~9perr:g€é:;e Smieiieg Ass: 3§§G §;?%%{3;;'€§ A 'éicsi, 3966?}; $38 zénéihra ;B}'"§.'?éEI§=3S§% €;'e--e§3e:"a2i§v£ Sa<:2'e:2'es giiztsf, §§54 §;%P€S £36, E§§4,§: and i%%,e mui£i~Si<:;i'e €3e~eper0ziive Seeieiies Act, 2382 ACE, 26302] irarisaeiing ihe business of bankjifig; noifall within the meaning of "banking as defined in Section 5{C) of the Ba.q!§ing AC2: 1949 (BR Act}? Therefore;',ihe;_p:'§§viéiiQ.fiS is '« Recoverg of Debts Duejo BCifi_i§L§"-and :.E?'ir1'ei'f1<::icil':'; Institutions Act; 1993 S Doctrine of incorperaiion :;1;_rei'nQi'v..§1ppl.ieable teii the recovery of dues' ihe from their members. "
89. The 0f;?.':0~aper:iiive féocieizies eannoi be said 163% .by the Ceniral 45, List I sf ihe Seveniii ihie Constitution. C0-operative S::i:--:ké fieeperaiive Saeieiies fieis uezieeieci fig'..vi?:e."~~'"reepee:ive Siaies woiiici be " _;eo7eered b§;'-- ._ee«0pe2faiii2e seeieiies egg Eriirg 32 ef " V"7{§.f_ Sevefiifi Seheaiuie af ifie €ens€i:'iiiien ef V * 'V "§z::9:iis:;i "f?;.;»'?'. " _ in iiie eeuree efjuziigmemi, ihe Sufireme ijeuri eiee "<§eaii;%;%j%i1:: ihe ea; gem 3% am} 33 ii §"€8;§S as 'ij§:§€:'Z W. % 3/ 88 SS. Tfhe Parliamené had enacfged Securitisaiion and Reconstruction of , A' Assets and Enforcement cf Security Interest. 2002 fthe Securiiisaiiorz Aci;'!_w.hieIf: s.?iciZ'l '" be' deemed to have come into fz_:>rce~0_r3-: i2J~'5?..'&c1'L;,:"V cf June, 2002. In Section 291) cfihe S'ecuz7;t:safit0n Act: ' same meaning is giuen.._V/:'iG._cb:he.V. uzordgi cempany' as is _<_:1ssigr1e_0__i__V :«:>V__i:?__jén ciause of Section 5 of the Aci. is/3§AgjC£i{'t._if}'cEf definition cgf 'banking company' Act but white ciejfining . Pc:.*Z§afi1e;:r§§" gave five nzeanfinfigs icifici one of which :3 he Cenfrai Gauernment is {:Llii"?ZO'F§$.:ri3ffZ¥€ 2{c}_'{'U}' {he Ac: :0 specify ciny purpose ef the Ac: In earerczise cg}f""§'?ziI--;f;;£}:L'>e§;' {he éeairai Goyemmen: by _ 350:: f::%:::2:§e .e:::é::z §8--§E~2G03§ has speczfieci "ce- ""'«:.0§g2e;"a:z':ie 5%::c;,i<:.55.«a§ defined in Secfion 5{ee:::'§ ef {he :2 "ban§c" fig Zgfiiézg {he eiefiniiéee cf ise» Ae§e?re;ii:.3e_--E:an§5 cezci Erémerjg ce--eperc:§:ee Bcznic' V regfiéecgjieeig jcem Secéien §§, Céczzzses Siccé} Gi?"££: ' Eeéévfi V cf Per: Exi "fie parééameaé hes; éfaus; V' " ceizesisieniéy mczcie {fie reeaniag Q2' 'banking ceegeang' cieee" begend cieufei is mean ':2 cempcang engaged £33 Esenjciizg, ajzé es: 5: cc»e§er::4:{:;:e secieigg engaged in banking' and in Act N923 ej while, amending the BR Act, it did net Change' definition in Section 5[c} er even in 5{d} eeoperative banks: on the other .h4ancE,' separate definition of co--open1_tive-..b;;inl:~§ in..'Secttif)n_ .« 5 (cm? and 'primary co§operattz:e"b.ank' ,Stection; ' 5{ecv} cf Section 56 cf the"*~Pnrt .§/70]' Parliament while __ enacting the' V. §ecttfti?z's:c1_tionf§ Act created (it residunty pnwer 'in_ Seetien ,'2H{c}A[v} tcr specify any other bank the purpose of that and "ea-operative banks iby :2'8§GI»2003. The eenteiait Qf clczuée plainly excludes :t1;é"eJ3£*g5;};;; of t*efe"re'nce banking company being of-..zcefete.nce ta" Ci ceeperattve bank for t?tteeLtecasene:"ftre'ttgaL"Section 5 is an interpretation V .::ia,u:sé:' .3_econs:iZg;;v. stibstitutien cf' 'eaoperattve bank' fey' 'E§antctn§=«vee.:7r:pczny' in the definition in Sectten 5&2}, e;'at:,:e ?"8SL£§€ in an absurdity Fseeegttse then teettéd reeé tttzzs: "eo~a;>erattve Bank"
V mer;:n;§-V_c2;ng eemeany, wtzten tennsaete the ensinees ' .;ejfleen}s.:tng tn Endtn; tntrettgg Seetten 555e,} dees ziefine "ee~qeez"e:ttee §<:tn?<"' segarateig by €.>€f;§f'€SS§y éetettngftneerttng etnttse Eeetj' tn Seetten 3. '§"§':e Pefttefnent in its wtsaitem nan net eiteted es"
1:;/'
-M «.""_«'J§%'Ei€.§'}'A§S; émgaagnacé in fififigii' brecseamgsb which was 3356 issueé 82 madgfied {he definiaian bf 'banking Section 5 {C} of the BR Act by Act No.23 of zg6;:':; ..._f .. A'
31. As noticed above, 'fQ'o-0pera:'i'uaBank"_ was separatelg dejfined Clause [ccij and 'primary covajagfaabe simiiariy separately c:Zef€nea by Aclause meaning of 'banking fi*::erevj'0re, necessarily by str'iczf§y confirm}: tile wafiisflxused in Seciien 5{C} of {be 'intention bf {be Parliament was :oV,a"r:fin§3 £fL2AA"§',o;ag:_>efa:iiae bank' as 'bankring"(:bfg3gaany;«_ the easiest way ;fbr'}£h1é"' that 'banking cavmpaanyf' ériizall -.fnc:?:.r:,ir'z" «.fbg;z§Eing company as dvfgfinedb " .:;e*c::on<V""<5_{_c;. and shall include 'ca 9g:,;era:'i.ué m;:z%'%j;z_,}za .i;i:'n;r:1ary baoperaiive bank as insesgéeaiibbirz and {cats} in Sebiian 5 53;' AC:
3 _§23 Qf 3955 ' Clea: {ram the aféamsaid gassage, 'finb Abs}:
--V€9ari¢%1?€§_Vcansié€r Keg: {av} bf sciaage {CE bf 5ub~$e<:€i:>:a {E3 bf ']:§e;,:m_;: 925" 3% {be As: ané 'ins naiizificaéiian dafzsci 28.$Eb2{}€§%S // /, "'e«w,, €3{§'sf'pQi"a§€ hanks? 'sihezz su€?:2 €aw@p€:"a§i<:€ Eankg cafifiai; $36 83 under ihfi afarfigaid }3§'OViSi€}I1S., it appraved H16 E6gis_4]..;;*§::*.§§T~::1€>§€ adapted by the Earliament while enacting the residuary pawer 'under Section 2{1){c)[v) bank as a bank for the purpase of A-cf,' 3 u 295 in that afofésaid judg1fi:<§'ni.th€ Supreénée Csuri, at paragraph 81% it is heifi "He*_{€ie,_ z§hc§3'VV'écVi~4<)i7er_f'ci2§i';;r:3_ Zéaifllfié pverfonning junctiaifii commercial fLlTlCt£<T)fl #5;.V_<fi9jz50sé2§fi :t0..Ajcorpofagzté banks Cannot be <v>z:#:2V;'2'Tz'%<<3.c2;A:*f:.fi7n€§*§; "--45 53" I dealing with of caaperatiue societies is 130% §;ri{:E:;dé<:?. €r':«V.i§:<§"i;?i*:;"i<2}i Lisi :2:1i§z;e:" ii sewers gander _ .Ez:irg' §::'§:2_::f ,;{§z'si 2 €,}}""S€v€r:§}2 =$<:%zedule appended 3::
' 531$ C::r2s:iii;£§i::::...'7' 3{}.__ V _ @§:'$a§efu§ §€E'%,5;$8§ 9f 132% aibresaid ::>'§3€:°2;'at§en mags 4:: {'§§a§T'i§S7éa§ if a €@~0;0e:*3.1:§v€ 83.3%: £3 p€f'f€Z31'E1fi§g Vfu:2<::§0:r:$ 5:51' '* é%:$ gsaifiéis wéééz a iiiééiiifié a{2::Q:::2€:'€:%a£ :'u:::::'é%s:: as gpgsgsd 2:<> """~«§§§W §§'}i:~;' 3&3 bzssinms sf ixznkézzg, fer {ha gszzbiicg iiéers, 84 Covsreci by Emry £5 sf List I deaiing with Bank. _.§~I:§f;v§ék'€r§ if C0~C)p€1"8iiV€ Bankgs am perfamfing functiens fC::'i_i';hé' a corporate banks are performing f:;g_f1Cti0:1S;.§f1C3':i_"SQCEE'bafgké » 1 are COV€F'€d by Entry 45 ofLis1: I in tha afaresaid judgment th€:Q3:.pex Cuégft wa:3 éQ.i:c.ejr1'1éd with' 1316 definitiam sf banking CO1'£i[3éf1:,7.VV as .'cZe?:f;i_ff1.€:r:i Vfiunder the Banking Regulation not include a cc}-
epéraiive bankg co~0pera:i_Vé_C:e:iit :g¢><'§i€ty',"V.'pr1mary agricultural credit society, :3::Q~?}p¥3ra4_£ixze"'?5ar:§: and primary credit society' 35 'E'E:er:=:.fé:%%§V;V;f:':;~:;i"':§":é:r aferesaid judgment 0f the E3;_§EX {3eu':*:.. 1: is 5E'c;§:' £31.21: évhégz {he pr{}v:Si<;=n3 of the As: is {S has *-i~is..§p'é§_€fé 33:1. 3'---;Ce»0;3éf3;iiv€ 33:1}; fifsé it 323.3 :0 b8 asceréainsfi %:1v§"2a3%7zf,§:'<2r,fV'::.:fz%;;':'iA';1_ iizyaperaéizzs Bank :3 §€§§G§'E1'}iE'1§ fE§fi{':{§Gi':S {$3 the _§Vi;f§:§]:;"E !'§5'v;':§:.§"§§ 3, Eiméted {30§1"}§'3€E'Ci§.§ fuacéians Q1' fum<:£;3;G":;
®;e €rfa:i*::::3?:2g fig; 322:3}: $s~$§§ra%1;iv€ Saaks as zihs f%.:E§C'{iG§3 £2?
"§i3a:fiéi1:§" £5? '£16 pzzbéécg if figs i::€}~%p€§"'S;ii'i7€ Saniis 335 ca::°yé:1g " '..¢{2zz€.::i::€§ is "gas fiamiaéng R$gU.§:::zii@:': A23 Qf 35%»? 33% E336 neiwiihs%;ar:é§r:Vg the fact 313% ii is C<>-Qperaiéive B22;:1Vi:<;,' é.iV £3 a ban}: as defined under {ha Rat azzd the lava:
Parliameni in View sf Emiry 45 05 List I of {G such Bank. it is 9:113? Whey; 5: CT0{vQ§}~:.:jfaf;§.ve'E§©«;:§;e§}z £3 "
Ca£'f'§f'iI1g an Samara} aciiviiées,__g::d "{'§§k:s1: 313:3:
banking activity, then {he L13: H and the Act is not 2t1';j5'g§::aqI;';VA1V<.%:"'§.'i'.A<§':':«$fi §1f;_C0~§fi§éf$tiv€ Scecieiy which are Carging a iimited extent.
Therefara in seasoning cf the Apex Cami jgn CO-OPERATIVE case is not applicsfibie :0 a {3£:»~é::pA<:1'aé;-ivs Bafik; igiI%:.s:§§'9;s:§::;':':1},i busimass is 'bankézzg, ii; {E26 Cass 0? R38 éci $1311 éfia éefizzitiofi as %:€%'§fi:J%§f:€:%"fr S%3€:'%::ZG§: Ziéé sf iéza Said A5,'? éefizsizsg 'bazzirgsg éié H93:
§::r:'Ez:;_d€__v's. .c--§:é»0§€:aé2'_:f€ hazzéa 'E326 aaserés assé iisrsin *3; 3:;a.:i§<;é:2'g-- "$@:*§;:2a:}.j§;. Ass ms ésfméiian Gf Eanigirsg $i3m§a:@y as 3 E /K 88 definiiisn 5:? Banks» 3:: {ha REE £61: dis? gs: Ci} Ogeratfszfi bank, the Apsx Csurt held that Qparativé socieiiés cannot be Said to have ihéb Ccsntrai Legislation by reference 13' Schedule $f ths C:::ns1';i:ut:e:1,. ' '-in f/égétof ihfiugh iha définitien ef 2{E){§:} also inciudes a bankif g . §'»":I rv;"'~§<;:V)AiV'ess3§§,* states Such athér baggkg Vvhigghi may by ngtéficaiion This previsien is it far that mason? in the :«5§.z'_':'>VV<%V:§'<V»v<<iZ<:31)::'1: took mate of the fact that $.?;§e« maanings ':0 {E26 Weré Bank and Cssnfnza}, {::£3'{"%1*Ef.: §f:3;,€.':'~':?;Ai.;3 é.{ai's,Eic::'is€Ci 'hf; Sectian 2{s::§{V} $5 13:13 E15': ' V' . figs'-si§{'€<;5;§7:x; 8;§}}7 <;5:§éf"§:;I'g7.::§< fgr £16 gurgsss af éézis 3:25;, TE'u:"EE'1a3%; ii i3:ai:€:'s 'iEi:é3».i 9<:~:f><e:rci;s=:3: af this pswgr, 'élhfi {$633333 {}@ver::::;€::*t "?é§%__§:%;£:;ii§§c駧%:g::§ ééiifid 28.{§E.2€I@3 has s§6<:i§i€d ma C$~O:3€Zf3;1:%V€ ba:1E<:'g3v;'$':.<§€§inefi, in Ssciiegé Séscéi :33' the BR 5%: as 3. Tmazzk: by §é§Eé::.§€ 332:3 逧§::éii:ie:: sf z:::}~a €i"8;§;"§'%:'€ $322}: 313% rimarv $0» ' . A3: A 3;
apsraiive baziéi zsspfistivséjg item fiaégféiezz 5%? §a3<:t:%G:: Esfsei} 22:21:: 8'?
{CCVE af 193:6: '£1 E: .3150 :1<31':::Z::efi that ?arEiar§és::':.._'»TthuSa Conscieusly made the meanmg of banking beyond doubt :0 mean a Company engaged iI1'a-nd Vnot . a Ci}-C:p6:ra*:iv€ society engaged in b}:?;n1<:§_ng 1af1'd in E£<:':" of 3965 while amending the BR-.___AC1:, Aiifdid definitien in Sectien 5(3) er €v€:1 '1fi ':3{d) iiiéhigifi é};:~epera':iv5: 'banks; 01:: the othar it z;:__s<:?£;§a.rate definition 0f c0~ Qpérative bank in VSectio;1" 5v{c£:Vi} 2f0~operatiV€ bank in Section sggcazj Séctié)h\»~': 5'3 V 9f the BR Act. Parliament 'égrhiigfenadtingfha 'Ac': cfezited a residuary power in Se<:1:i0n:v'V§'i{A§:Ti3[{:*'){;§f'}_to gifiiver bank as a bank for the purpesexésf 'ihafi dié Specify <:o~ogera*:£ve3 banks by gqgzificatfiésfi _ d3.:éfi :2:8:.'{}E,2GG3. E13 iatsrpreéaiian céaase «g:;§a§:i:ij§}' agggiufifis :hé"'€§féci $5 a rsferezzce :0: bankiag sanzgaay "V.E:_3:ti::_g"{:iié::S%:*{:3_dE" 9:" §'€':'€€'I"<3§:€€f Ea 3 :':G~aps:"ativ€ than}; "$26 ?a':*i';a':*:2€:':§ 'i:;51_ its xsiséam 33335: :30: aiieréé or maéified igha .§€§:§n:*i:::€>:";u {:5 éV§"}af1}<;E'E'1§ e:a:::;1§a::jg" :23 S€Ctiii}f'i 5 13:3 95 as $3 Aci by 3%: $2" E§§§, §i'e1a7ev:3r§ ihs pfaaiigisfis sf E325 BR, 59%: was ' ' §4§§§ §C«i€ agggiésabie Ea C@~e;§2:a';§v€ Seaééeiieg as $163; a;3p%§; :9 air is: % > E é % , '\m¢f "i{:€'§1"§i:S.::§. §:%Q'if€§'Z{}§f3:€E}.'éZ §,$S%.}:%§ a agéifécaéimz U;1'E§:'3i€I' the afayegaié %/ 88 relatien E0 'banking C<:s::1p9:ni$s szibjgcf; {Q the medificatizms $6: 921: in Saciéon 3 €c2-9p€rat2ive bank is separat€:13r.--«%iefi::'éé:i'---- 1_.:i:":'v<i_é;:V Ciause {Cd} of Section 5. The resultant pesitidrz 'thé'=?bam~:§ng' . company' as defined under S6CJ£iQI:f¥._:5[¢C.'}','}f 'iifiiih' i:3;:»_éS net inciude a '€<:=--9p€rativ€ S§je:i_€_t;yl §'Iv_(:'»";}'&»"<?'v'<E'1°'.'fi'."';A§'if B_?R. applicabie :0 3. 'C0~0pera9:iVe 'i"i%fEJ,é: 10$ Séfition 56 of the Act Therefore, the zmder Act means a bankjzlg camfiaggya ('/'1'cA"*.A'.L.».¥.:E'>v*:T"»"_ éjf the Act definss banking compafivzf is it is in ierms of clause (5) Therefare, the word 'a ééauge {(3} @f subwssction {1} @f Seciéogé {beg Cayogsrative Secieizjgz The BR. 2%? is mada é:p§§i£:Ei§3§e'*.€é" a Cg~9pc:::ra:§ve Ssciety by 'véytus Gf ««S€cii§€; 5:3. V-Liiw §:%i$'€';":::r:«:%€:* éhe Agza a residuazgz graiyfisism is *.§i2as::ié'é 'E:2:§,: ::%8;§{V {sf siéaiég {xx} érzf aiauae {C} 0? 8z::'b~s§€i2?3:": {1} 9f Se{:i"iQ ;?1 :2? gnfigéréifigz $35 Sgrzérai €«m:'srn::}€né ma}? by rsséificaiégg __ s p€é:§;§:§ saéhér Sank' fer 3:315 pargsse :35 {he 3:32., 325 8?
previsier: Whicéi is dug? publishsd in '$16 Gazéiie 95. an January 281", EGQ3, which reads as under: *'MENISTRY OF FENANCE ;::1xia§:i;g;£'I?z4;i'€5%' f§;§'IF'z§:r?5: ' " {Departmeni cf Ecanéfmlc . V {BANK:NGJ;:>:1{gs10N; V V J' ;V0?zF1C._é{2*;:jA;'-- .. _V _V §'\Few 9ezhi,----.;fie 125%» 2903 S5 0. I C!5(E2§ §:'"f2L isxiééfcisie " '};:f ';:}:3--z;:;i<2rs sanferred under: Sub~se€tion {I} of Seciigr; Sr_3 C;u%ié':§cz:iQz1'}ancE Recz:>r:s:z'uc:i<:>r: Qff Ergforcezrzené Qf Secuzrfig En§é=reé<: Q; 2§§:2}, {he Ceizirai G§ve%:ra--:2j§;s;v:E v?éz¢fré§:3y" '«5°§e::-:'j"'z'$es "CQ~0pera::iz;e B«:2r:§€" atfefingéé ééazzée 503$} Q?' $665537: 5 Q!' Bazzfcing " a:Q §§;3'::a§{:§'§€2_n 4%Ci,HH§§4§ 52$ 9f £949; £23 'baz2.:»c' far :3/ze V " .;§j"'-..Sec:sr{::§sa:é§:z and R€€GfESi'§'LéCi'iC2?5 0f "--§*'§zé$z:::é'.'§;:zV§VA'{I=ésseés {£5255 E§"§fQ§":"3€%?"£€:'?"E{ $3" S33:/ariiy '~§n:e;'~s5:«§;%e:; 2&2 554 Q? 29%}.
§§~7'.§V& E g'2;';3QS2~§Qw2§ §§:'EK§:L%§ 駧7+z%???°ii%L, J§S€€y, " 2% /"
3%"//'"
95} This in the Eégisiative device adogied by make applicable the pravisions Qf tE;é"2'~§;C«f i;0' '£h¢':a ' da not fall within the ambit of item ciaaissi wards 'such ether' refers ta nét' :0 public: bank? as c0nt§:>:;deé,VAVi;--é: " €fi<*':'»..§':1sti'"L«i1'i;i:,m,éarrying on 'banking business as 58?) 0f the 33%:
Act. Similarly? 4';.r"u.=:__ eXp'féés'i§:i:;:fsiicfi 'bank' provides a. sufficient to examine its gmwérs :;_:;;:1ve_:*'t.ffi1€ §.f§'.%é:§l§.:%\;1}d»:§fh€f€fQY€ it cannot be said that thézvvpeweyVS:fié«:a:>n'i12r1*€:<;1« excessive and arbitrary. 33¢ 'V fgiié"'u_ffiGVf:Si§L*L1T3G§:a§ Vafifiiiy fi§ {hi-3 £1452: wag §é£€3§€ the Apex Cam'? in $315 sass of m Ai:*§:E:';»§:{:;§:$'_ vs, §"3E'IQEF§' Q5' §}¥fi};% yqsoragd m 33 2&4 V V' _ SC §3i?§.__; g'%§ie§ caagidsring fihs 'v"a::°§,@z.;3 asgsasés, fiifi S'dj3E"€fi"T1€' A. n jf§:€§i§;f§; Whéié zzghgiéing $18 Vvaéiéfiy sf $36 fie? and 338 gmzrigiazzg %;s:.§e;;'*';"%;§;'1a: ef sub~s€::%;isr: {2} $1? Se<:=a:i$:1 ii'? 9? 8:6 .{%§:£:g zviiéch 9};
was éeeéared. uizra viree ef firiiele 34% 9f file Cer3.§;i*;?if§'L-:._1f;f§G_r1 95 India; held as under:
"$0. Under the Act in c;}%i7sViCierz;:£':g:>n,; « {fiat befere Ealfing action a cf :
required £0 be given andefier _:fzeasu.reSfl_p§r:Q£er:'§ Section 23(4) of the :?';ave baee;~;'-é::;cé::;, <7. mechanism has been prQz;ic£ee§I'--:ihéier Seeiianehlvj? of ihe Act :0 approeieh? Reeeuefy Tribunai. The above rgoéed p:f;:e§s§Qree._V;"fer' ._p7urpases ef giving sqrne.efieasolfzalgle...preiee2ii@z:fefA the borrower. 'iewiI_:g «..:he7 perspective, we find previsions of the ACE, iS'A€1E::fQllG?:{)$; .' I ?,§::%§Eez:*a 52,? 9f Seeéiee 3:3 2': is geigzeeanfiaezs-E %f?ze.see:e'ed erediéaz" fie serve Q3 $'e§e;;gs §?.Q§Z'C€ '5ef{;é;*e ereeeedezg is {eke 52:23; ef {he .. eroeided mzaier su§::--see:ie:'z {4} Q? see fieé. zfifier eeeviee sf ezetiee, if {fie @ee:~es3§;,§ee raises azzy ebjeeiiea er péaeee feeis jar ee:é.s;.i£er{,:€:iez2 ef {fie 3€C§,i§'é'§ e:'e&§Ee:: sage}: reply is ' I _g;e"'neéiee mags': be eezfzsééered wijéié éage epgsiieaiéezi €595 mind and Efae reaeerzs fer me: eeeepféng zfze 13¢' objeeiions, howsoever brief iheg; may be, mus.€; £2e'"._ communicated io {he borrower. in core/zeeteioxz.' " EH23 eorzciusior: we have already heioi :1 in the eariier pari of {he jL:dgmez:_2;
communicated shali only be jior €%3.eo«g3{:zfpo§:s;eS*«oj'{he « :jrforma:ion/ knowledge of .. Z'§on'owe§f_"_~A ;£}itZ*:ozi,L§§.«"* giving rise to arty 'So oP»Z'2fOQ;cif}1 Recovery 'Frébur:c:;l Lznder__Seo;tio--r; E?' of oi ihai stage.
2, 515: .aZreafd;; 5;: measures having zsmier {4} of Section E3 }:i1ef.. zzole/auction of the g:opef:iy_ i: '%;:>§jg;;_lcZ--._5'e_:c:jpe2t--;)foV:ffive borrower to file an ;1£opea:iAV{TL*e§i:iorz} Section 27 of the AC: before {he Beb: --fiZf:*ib:/{£515.
Fgaé' éfze §'ri§3:mo:E in exercise of 5:5 oféeiiiézzjg powers ehoéé have jzzriseiieiéozz io gorges T. 35:::2gg;'i;2{ez"im, orcieg' eebjeeé éo {he eonfliéiors o: 5: ' ?2éoz§"§:fee:é2Vfi§ and greper So Emgooseg 41, in eéeao of {fie oiiseassiesez ofreadg fzeéei oo, x 'T {E253 befzaifg :::2ej"i;'aof éfzeé zihe eeqzaizemeei' ej éeooeii " of ?,§% of &E'?"§é:iE?,€ eiezimesiz Eefore enterieizsing can %/ appeai {§€::z'£"z'en} zgnaier Seéiion E'? af aha fie: appregsiyeg enemas and czrbiirazy against (31% the ccmans of reas9nabEeness';'.__S:;§;h: E: Condition is zinvaiizti and 2': i;;<: ~Eia.ble dawn.
5. As discussed e},_;fZ~i.gr in AEVF3/£93 ~?.i,?{E;
find zfhai it wéii be apen iRé'»%y(;i2§iaif2"a svvzfgii in eivii «gaunt; withifi 'ihe ._r'z£:'§:'z'r'z*é:':»Q,,%' éijape anéii" CE}: the iiniited: graunds 92;; V'LL.'r;'£l'{?"s;?',_ :'a;:{g.pVérmi$sibZe, in the matters: reigztirg». fid * ' mortgage enf9rCe::'bZé"j:;:.§§€tI*1oi~si igfflte COHFT. 352». _ §.:iV:g'%.$,Vi:(3r1 Béfgzjh of thig Ceuri in ihe case Sf THE AUTHORESEE ' §z%'F;€:E§;éENE:z% 2imNAGER, SKI BAS.§§f§*ESH¥iF:iF2 'V Cauépfimrnm BANK Lyn, vsé gm ":3;s.:;t§;v§;;§ figagmgééég Gzrzamaszzg :€pGr'E€é E1": SLR 253:9 '}".S§Z~.. aaziih. éhs vaééfiéigg 4:21' '$336: I';¥33:i§C3éi%§1 'asaring N::'}.ET__.NQ_,£;"§2}52{%G2~BC)~E Eiamaiaéga fiazeiéeg EXi:a@§°{iina:*§z ~:i.:§;iezj 233;%E_.2€}G:3s.; gap Ezgéfi the afiisrssaié neiifécaiéezz " §§':a'i_r %'§TaiE@:>w;§:g {ha jafigmsni sf vazisus 583$? Efigitz {:S'§};§"7§S5 / 23/ 94
35. in this backgrouadé it is Cisar enacied ti; gflug the Ecrepheles in certain 3;:'T'e:1-séiiiaj, é.€%h'igh banking and financiai sector difi nix': :"1&V€z':'i€§-Ifil' filajgiizg'-LLfie§,:i -as Campared to other participafits-_in EhéA_fifi3f1€iS:i'é?f1'3fk€'£$§ its Eh-I:-. werld. There is no Iegai pr0xris'f5n :f<;rufaéi1:'ti§ifi§ séturitisaiion <31" financial assets of a'f§.d§V.f;if:fi*g.:gfi:1£.institéfiténs. Unlike the irzternatsionaifianks,_%:1f;{é_ institutions in India did net vjgcgsessian sf securities and sen ti 1¢m:_. _.V Oiir Iégai framewerk relating is commsffciafi"i:*::i::sa;§fi€):1é"1*i_é.s :10Vi £;.ept pace with the Changing €a:nme§:%a3'~p::a{':i:€_S._é.:;s§ 'f§n'3.:1c§aE secéer referms. This has E'€Sti§.§,:€_fi i::""::§;éW géacl:: $75 resazrszy :25 dafauiting hams argé ~v.:r:ae':i_:§é:1,_:;g§f Eeféseiig si§""'::Gn~p€r§ar::2§n;g assfis 9:' bankiag ggfi _fzfgaéicffi,_i:3ééE.a:§:§.@zf:s. E: :5 has :%:1?s Easkgreuad, '£9 Eacifiiaée s€C:;:*§i§sa,:§0:<: Afef fimariciaé assgaés @§ ésafiks an§ finaizsiaé r__i:1§*£;§,ia1:%:@%::$ afvéth mi zxséiheai ths %€$€fi§ aé' t;2::éa:€}r:%r1g -asgurfiéfig 'éiasiéiiaéing €9.33; %:a::s§s:§'§:iE§*s§z Q? §:*:.f«:z:'s_€:ia:3i 333933 E}? fie :§a;r:11§:':§$a*iiar: €:3m;§3;:z§ 8? rssazzsérsscfiazz {:é"5E'§§f33.§1§7§ {ix agqaairfi E , %:/ , x '¢'\§$ @1336 fict ?h€ E"€q33;i§":i':§§§€%}{ GE Eaw $53, a §:<::*f:§iE<:a':§;::>:r:sT E5133 fig §e 95 financial gsssts sf '§a.nk$ and inanciai i::~3fiE::_f:i'<:3_r£S_ 8.E}§ Empowering banks and financial institutions is igjke --pe:i:§sé;3si0n sf S€C'U.I'iU.€S givén for financial assistanse am'! has-6' '€516:
S3Ifi€ 31:' aka ever management in[th€b:?,V6}f1i'.§>f' :i€£,3u3i;.._thiAsTACi 7 was snactsd. 'Jv'h€ther a. B;::1.};§E is $14:
sectar G1' in <:®~eperat:i\:'e seeing; pr9'b'ieVz_i§' ééne. Thé Karnataka C0~0perati\}é~.f75ecis_§§é;§ provide any machinsry fer similar by virtue of the pews}: c0r1fe:':*e5§.L:V:.theiy Pa.:}§1Ifie£fi ."E;a;3:.f«efiaciad 51113 Act as banking E. .j':.:)f .§SChedu1e VII. Once the <«-:u1_9ié{:i;:nent is upheid by the Apex Csur{ i:3r LTD zsasa what: '£316 aaid €na::;f§e::€%prQ vi:§}é:§ {<93 31*: appiécatigrg $5 €316 gaid prsvisiens :9 4, Sufi}; banéig *** 's:i%%:v;aE2 $16 {Central {}G§f€I'E}i';"}€I1'§ may by _ "1n<3_t'éf§Cés;:i_i&%3;:%VAggéééég {gr 3186 §¥;iE'pOS€S Q5 ibis Asia when Q15 pith 335% Saiéfigiieéifséé af 5236 éaasémeaé is 2:3 €::;;p@:¥€r "§hES€ baaégg is 'iaéie *~ps::A$%3esT3i{3:';. {:5 {E3453 sxiazgriiieg 331$. 352$ Ehsna? 353$ gewgr SC; Qaéifssyreé ufiéey £338 £82 :31: {Zi9~a§€raé;:'s=;e 'aazzks is éxfsra @395 aé' WMWN' /, Q8 EsSuer«:§ by the Cfintrai G0v€::'::r:1€;;': undsr SECEEQEE 2{15;§:<;§}»{3§};;._V'E!: is not in dispute that sash 8. noiificaiion hag b§==§§ii"i§3Vs1.1:eii:,.v aforssaid, the validity of the netification has-a1f¢;.ad3?.::be€nV'up held by this Csurt.
ANSWER
36. In the 1igh"E'CiiSCuS%i;)fi; we answer the' points fer C0I1§3id€Fa1;'iVQV1_';? 'A n [1 (C) of subsection [1] intra vires of the EA-.(v1;'c3%:z$ti~1EVrV,vz':;z»":¢_§§~r.3»':z§§i?Z @ccordingly we upheld the . _V eéiiaafiitaitisiiégi Véfilidity of the said previsien, ' Aii the §I'*Ql?{$iG§"£$ sf figs Ad ané in ' Seséiarz 23$ .:4§ :2 .23 and £3 3;' are agpiicahle :5; Ssfiperaiiise Banks, imaséiéafed ignée? {fie Kamaéfika Saw §§e§°@§§::e Sissieiies fiat, E1 §5§, .»<»»»*"
\ Q7 {3} The impugnefi ztotij'ication_.. " ~ V. 28.01.2003 bearing No. s.0.105(E)_:'" iss1;"e§i T» under item (12) of clauseiféj" of of Section 2 of the Act, £§'s2a:i--£ clz (and'£.( 2gal..«. V' 3?; In that Viewfii" ths ;r:12;tiier, 'w€ do fl:'1'z:=€.s€3é any merit in any sf this CO§1[€fifi§Ti$ " :;}1*~g%3d V"L:*Z%2;A.VVA*:§1§is writ petitian. Accerdinglye we pfgtsgs the"ft§1V1Q§{ri::g'«c§:*de:'§ """ _V 2908 flied chaliengirzg the ' §?0§:s'f£:€a€i§;:§C:E--.géiziisiziig; Q?" Seciigrz 2{3§{C}{Z}} 9}" {he Pic:
;€i3::=*.z.'?;se%;i.
figzggai f'£<;;2382,;'<$3Z7 {f§"'£Qi§€F'é§i3E§ zfihé §:"de:* . '§é3sea:E by {$26 Esamssi fiingie Jasige hsiéiség éfiaf E516 . Ac: is ??:§§, aggiisabée ia 2':§2e a:':<3--§;2era,§éiz,>e Banks is {Ci} as; ' "Eff: V A<"";_. '' 98 hereby aéioweai, Seéiiag aside the :';3:p;z;§;V%1e_&.§rder in appeai, Consequently, aii the c C}::n;:>¢:éd peiétic-.¥fi$_.:j:iEed by the berrowers €::né§é§.:smissed.' A2'/Z _§he:_ Co§i%1éC'£é§Z pveéifivfjns filed and writ' the i%:2"edi:0rs{Co-csperative Banks _ aiE~f2_::2_ea'._ _q:;_s,_éi,s?:ing;H:h§:5 impugned Qrders. H{2:i:é':;e§*; ifze".-.E2or:'0wers;"debi0:"s are grcmieé 45 §::V.'g::3_V fiéme fiom {he (mag cf rgeeipé cf {he c§z**aj"ie§ zizpg Cf ifie G?"€§€§'} $9 fziég an apgeaé épéztizfiors} under iiéiiisjn E?' Q?"
J {Em AC: §3€f{:?'€ 3328 $653: Recavgrg 'V ribuzafii jér zjarzgide:/'€z:"§§:": af éheir grievaancgs £3:
{i£CQ¥'d€3{?'3EC€ with Eézw.
5?} fnéerim €Z3E'd€E' §r'an;:ed by ififs Cam: is fiii such an applicaiiczrz i.Sfi§€d before :h__e:--
Tribunai and ihereafzfer fgr a pe;ribc;i----, » _ within which time {he :'s;pp::2aZ}'ajfip_Zic§iii0f:'VS§1§iiE(_?3e decided an mer*§.:i§;.___ 5;" 'i33_.e' :':0;u3 é delag :7r: ' disposing 0f appiicefiéifin § is the borrewers/Cf¢b%ors~'fVA the order granted by {his Cour: shall Astgizizd expiry cf six ATE:If1:hé'3 gr§)'an'§s_aged in zhzs wrz': pezitzan chaéiéngifzg. i1§"g::T :;?i;éz/agxzeai noéicegfarderg excepi 5&8 z,%€2Ei_&zif§; .'-- 93?'. ajéresaid ;}Z"QUE::Si0E'ES and {he :@Q :§jfica:éi'§"%3;§?,V aié €328 C:m{erz:':'@;/as are Eef: ape/*2: :5 be 'V _ ?u.%*;'s;.:.j«:§<:'£*..?:;*€fa;*8 €329 fieséfiz' Recawry '§':'é§3§,::2a:§; 3%} 1.
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