Judgement

RAY, C.J.:- This is an appeal by special leave from the judgment dated 1 June, 1973 on the High Court of Mysore.

2. The respondent Karibasappa was the President of the Bellary District Co-operative Central Bank Limited Hospet. He challenged two notification dated 11 August, 1972 issed by the State Government. The notifications were issued in exercise of the powers conferred by Sections 54 and 121 of the Mysore Co-operative Societies Act, 1959 hereinafter referred to as the Act.

3. The management and administration of the Bank was conducted by the Committee consisting of the President, the Vice-President, and then elected members from various constituencies and certain nominees of the State Government. At no time the Government nominated more than three persons as its representatives.

4. The Bank had a share capital of Rs.75 lakhs. The State Government contributed Rs.23.8 lakhs. The Reserve Bank of India advanced a loan of Rs.135 lakhs. The Apex Bank also gave a loan of Rs.200 lakhs. The State Government guaranteed the repayment of loans to the Reserve Bank of India.

5. The Reserve Bank of India from time to time inspected the Bank. There was an inspection on 14 October, 1971.