S.K. Gupta, J. - (1.) THE petitioner has filed the present writ petition inter alia for the following reliefs: "(i) Issue an appropriate writ, order or direction quashing the order dated 7.8.2004 passed by respondent No. 1. (ii) Issue an appropriate writ, order or direction commanding the respondent No. 1 to regularize the extension counter of People's Cooperative Bank Ltd. situate at Kalpana Plaza, Birhana Road, Kanpur. (iii) Issue an appropriate writ, order or direction commanding the respondents concerned not to interfere in the peaceful functioning of the extension counter. (iv) Issue an appropriate writ, order or direction quashing the condition contained in clause 8 of part 1 of Circular No. 84.07.01.00-92-93 dt. 9.6.1993 in so far as it provides restriction on opening of extension counter in residential colonies, shopping complex and market places."
(2.) THE petitioner has also filed an amendment application dated 19.2.2009 whereby the order dated 13.2.2009 passed by Regional Director, Reserve Bank of an India has been challenged. The Background facts in a nutshell are essentially as follows: The petitioner was duly registered as a cooperative society under the provisions of the U.P. Cooperative Societies Act, 1965. The respondent No. 1 Reserve Bank of India (hereinafter referred to as 'Respondent Bank') in exercise b of its powers under Section 22(1) read with Section 56(O) of The Banking Regulation Act, 1949' (hereinafter referred to as the 'Act'), granted a licence to the petitioner to commence and carry on banking business and the petitioner w.e.f. 16.8.1998 commenced the banking business at 9/56 Arya Nagar, Kanpur. The Respondent Bank came to know in September, 2000 that the petitioner was contemplating to open an extension counter at Kalpana Plaza, 24/147, Patkapur, Kanpur which c according to the respondent bank was a shopping complex. Therefore, the respondent bank vide letter dated 18.9.2000 advised the petitioner to desist from opening extension counter as the same was in violation of Section 23 of the Act and it was not eligible to open the extension counter under the existing policy. Respondent Bank again advised the petitioner by letter dated 19.10.2000, not to open an extension counter without prior permission of the Respondent Bank and further mentioned in the said letter that the place of opening the extension counter was a market place and therefore, it was not eligible to open the extension counter. The petitioner in spite of the aforesaid letters by the Respondent Bank opened an extension counter at Kalpana Plaza, 24/147, Patkapur, Kanpur and thereafter made an application dated 16.11.2000 for grant of post facto approval by the Respondent Bank. In exercise of the powers conferred under Section 56 of the e Act, the Respondent Bank issued a show cause notice to the petitioner on 15.6.2001 calling upon the petitioner to show cause as to why penalty of Rs.1 lac should not be imposed upon the petitioner bank for violating the provisions of the Act. The petitioner did not submit any reply to the show cause notice dated 15.6.2001 but instead filed a Writ Petition No. 3088(M/B) of 2001 before the Lucknow Bench of this Court and Court by an interim order dated 2.7.2001 stayed the operation of the order dated 15.6.2001. This Court later on after hearing the parties vacated the interim order passed earlier on 2.7.2001 and observed inter alia as follows: "The Reserve Bank of India is of the opinion that the extension counter has been opened by the petitioner bank at Kalpana Plaza a market place in Kanpur without complying with the relative eligibility norms specified in para 1 of the circular dated 9th June, 1993 and despite repeated advices from the Reserve Bank of India, the petitioner bank has not closed the extension counter and therefore action has been proposed in the impugned order dated 15.6.2001, the operation of which has been stayed. Having considered the facts and circumstances of the case, we do not consider expedient it to continue the interim order especially in view of the averments made in para 23 of the counter affidavit filed on behalf of the Reserve Bank of India. Accordingly, the interim order dated 2.7.2001 is vacated and CM Application No. 1923 is rejected and CM Application No. 10288 of 2001 and 1344 of 2002 are allowed. Since the parties have exchanged the pleadings and as jointly prayed, list this petition sometime in 3rd week of March, 2002. The extension counters opened by petitioner bank at Kalpana Plaza, Kanpur shall cease to operate and function w.e.f. 1st March, 2002 so as to enable the petitioner bank to wind up its affairs."
(3.) IT appears that after the vacation of the interim order dated 2.7.2001, Writ Petition No. 8712 of 2002 was filed by the depositors in this Court without impleading the Respondent Bank as a party and obtained an interim order. However, the said writ petition was ultimately dismissed by this Court on 24.4.2003. For ready reference judgment and order dated 24.4.2003 passed by this Court in Writ Petition No. 8712 of 2002 is reproduced below: "The petitioners have prayed for quashing of the impugned order dated 20.2.2002 issued by the respondent Bank whereby its extension counter at Kalpana Plaza, Kanpur was sought to be closed down with effect from 1.3.2002. In our opinion there is no merit in this petition. IT is not for this Court to decide whether there should be any extension counter of the Bank or not. That is in the exclusive discretion of the Bank. IT is not proper for the judiciary to interfere anywhere or wherever it likes. IT is for the Bank to decide where to have an extension counter and not for this Court. The writ petition is dismissed." Sri B.K. Awasthi, the Managing Director of the petitioner bank also filed an affidavit in a contempt petition before the Lucknow Bench of this Court stating inter alia that the petitioner bank had ceased all operations and had stopped all functioning at the extension counter. Writ Petition No. 3088(M/B) of 2001 filed by the petitioner bank was finally disposed of directing the Respondent Bank to decide the application of the petitioner bank dated 16.11.2000 for opening the extension counter within six weeks after affording an opportunity to the petitioner.;