PALOK BASU, J. - (1.) NAGARIYA Sahkari Bank Ltd., Varanari ( here in after referred to as the Bank) is a Primary Urban Co­operative Bank with inthe meaning of Sec­tion 2 of the U.P. Co - operative Societies Act, 1965 (for short, the Act), more specifi­cally defined as Primary Urban Co -opera­tive Bank under Rule (qq) of Rule 2 of the Rules framed under the Act ( here in after referred to as the Rules). All the petitioners in this bunch of 25 writ peti­tions are aggrieved by the action of the Bank taken for realising amounts due against the petitioners through recovery certificates/Citations issued by the Revenue authorities under the U.P Public Money (Recovery of Dues) Act, 1972andinonecase there covery certificate/citation issued by the Registrar Co -operative Societies in proceedings for realisation of loan amount which was initiated by the Bank. Since most of the questions raised in this bunch of the cases are common, as prayed by the learned counsel for the parties, all the cases were bunched and heard together.
(2.) SRI C.K. Parekh, Sri M.P. Gupta, Sri Salil Kumar Rai, Sri Ramakrishna, Sri A.R. Dubey, Sri G.K. Singh, Sri S.S. Tripathi, Sri Saghir All mad, Sri Jai Prakash Singh, Sri P.K.G. Ganguly and Sri Bajrang Bahadur Singh, have been heard at great length for the respective petitioners. Sri A.K. Singh for the Bank and Sri Vishnu Pratap learned Standing counsel for the State of U.P. and its recovering officials have also been heard at great length. Both sides were permitted to file written arguments which have been filed by Sri Parekh, Sri Rai for the petitioners and by Sri Singh for the Bank. In order to appreciate the points which have been advanced by the learned counsel for the petitioners and the replies submitted by the respondents' counsel, it should be absolutely necessary to bear in mind few legislations which cover the con­troversies raised in these petitions. The Act has denied various Co - operative Societies including 'Primary Society' as defined in clause (ql) of Section 2 of the Act. Credit Society is defined in Section 2(i -1) of the Act and clause (h) of the Rules framed under the Act, both read as under: "Credit Society" means a society which has as its primary object the raising of funds to be lent to its members."
(3.) SOME controversies had arisen relating to the Banking activities of 'Bank­ing Company' or 'Banking Society' and in order to remove the doubt and settle those controversies a new Chapter described as Part -V was added in the Banking Regula­tions Act, 1949 which consists of only one Section -56 which, however, has several clauses and sub -clauses which drastically modify the laws relating to the banking activities of the Co -operative Societies, In view of the said addition as Part -V by Amending Act No. 23 of 1965 (w.e.f, 1 -3 -1966), Section 3 of the Banking Regula­tions Act, 1949 which provided that the Banking Regulations Act was not to apply to various types of Co -operative Societies, stands substantially amended. It may be pointed out right now that while the petitioners on the one and contended that the Bank was not the type of society on which the provisions of Banking. Regulations Act would be attracted, the learned counsel for the respondents argued that the Bank was fully authorised to operate as a Bank with inthe meaning of Banking Regulations Act inas much as materials has been placed through the affidavits in reply indicating that the Bank was granted licence for Banking activities by the Reserve Bank of India under Section 56 (O) read with Section 22(1) of the Banking Regulations Act vide Annexure -2 to the counter -affidavit in writ petition No. 48885 of 1999. Similarly, it was indicated through the Annexure -C of the same counter -affidavit that branches were opened in pursuance of the permission granted by the Reserve Bank of India under Section 56(P) read with Section 23 of the Banking Regulations Act. It has also been shown by the Bank that guidelines have been issued by the Reserve Bank of India from time to time under Section 35 read with Section 56 of the Banking Regulations Act which have been followed by the Bank. Those guidelines are con­tained as Annexures -11 and 12 to the aforesaid counter -affidavit in writ petition No. 48885 of 1999.;