Reserve Bank Of India vs Joint Registrar/District ... on 8 March, 2004
16. A plain reading of Section 115-B(iii) shows that upon the directions of the RBI it is obligatory on the part of the Registrar to pass orders superseding the Board. The learned Counsel for the appellant placed reliance upon two decisions of the Bombay High Court in Mahendra v. State of Maharashtra and Ors., W.P. No. 2746 of 1990 dated 29.4.1992 and Prakash Ganesh Aaphali and Ors v. State of Maharashtra and Ors., W.P. No. 3658 of 2002 dated 18.9.2002, wherein the question whether the Registrar of the Cooperative Societies is bound to give a show-cause notice while passing an order under Section 110-A of the Maharastra Cooperative Societies Act was examined by two Division Benches. While considering the scope of Section 110-A of the said Act which is in part materia with Section 115-B of the A.P. Co-operative Societies Act, the Bombay High Court held that Section 110-A is an overriding provision brought on the statute book with a view to have the control of the Reserve Bank of India over the insured Co-operative Banks in certain matters and that the directive of the RBI to supersede the Committee and to make an appointment of an Administrator in public interest or for preventing the affairs of the Bank being conducted detrimental to the interest of the depositors or for securing the proper management of the Bank is binding upon the Registrar. It was also held that once a direction issued by the RBI the Registrar has no discretion in the matter, but to supersede the Committee and appoint an Administrator.