HARISH TANDON,J. - (1.) There has been a several round of litigations at the behest of the petitioners challenging the notice, order or even a show cause issued by the competent authority impinging upon the functioning and working of the Cooperative Bank. A little prelude to the genesis of the birth of the petitioner no. 1 is required to be highlighted though the points raised therein is hovering around the show cause issued against it by the respondent no. 2.
(2.) Admittedly, the petitioner no. 1 is a Cooperative Society registered under Andaman and Nicobar Islands Cooperative Societies Regulations, 1973 and the petitioner no. 1 is a Chairman of the said Cooperative Bank. The Reserve Bank of India granted licence to commence and carrying on the banking business in the Andaman & Nicobar Islands under Banking Regulation Act, 1949. The Chairman and Vice-chairman alongwith other members of the managing committee were elected in a democratic process for a term of five years. The petitioner-bank was functioning initially in profit and expanded its horizon of banking activities by opening several branches within the Islands upon getting a permission/ licence from the Reserve Bank of India but subsequently there appears to be a recession in such business as the non performing asset has increased considerably. Subsequently, the inquiries and the other allied exercise were made in order to ascertain the commercial stability in such business and the strength of the petitioner no. 1; several letters were caused and the replies were invited thereto from the Managing Committee of the petitioner-bank.
(3.) From time to time the directions were passed by the Registrar of the Cooperative Society, the respondent no. 2, herein and those were challenged before this Court. The orders were passed sometimes setting aside the said order with the directions to initiate de-novo enquiries but the disputes remained and consistently continued for several years.;