GENERAL MANAGER.R.B.I Vs. N.VENKATESHAIAH & ORS.
SUPREME COURT OF INDIA
N.Venkateshaiah And Ors.
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(1.) Leave granted.
(2.) The dispute in these appeals arose in the background of the supersession of two Co-operative Banks in the State of Karnataka, one Grain Merchants Co-operative Bank and the other Kannika Parameshwari Co-operative Bank. The supersession of the Board of the Managing Committee was pursuant to a written requisition made by the Reserve Bank of India, under Section 30(5) of the Karnataka Co-operative Societies Act, 1959 which reads as follows:
(5) Notwithstanding anything contained in this Act, the Registrar shall, in the case of a co-operative bank, if so required in writing by the Reserve Bank of India in public interest or for preventing the affairs of the co- operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of the co-operative bank, by order in writing, remove the committee of that co-operative bank and appoint an administrator to manage the affairs of the co-operative bank for such period as may, from time to time, be specified by the Reserve Bank of India.
Thus in terms of the above provision, the Registrar of the Cooperative Societies is bound to supersede the Managing Committee of the Co-operative Bank when a requisition is made by the Reserve Bank of India in writing.
(3.) Supersession was subject matter of challenge before the High Court. In the impugned judgment dated 20th April, 2010 at paragraph 17, the High Court has taken the view that a pre-decisional hearing by the Reserve Bank of India is mandatory.;
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