judgment

Aftab Alam, J. —

1.Leave granted.

2.Whether the principles of natural justice have any application at the stage when the Registrar Co-operative Societies, on being so required in writing by the Reserve Bank of India passes an order removing the Committee of Management of a Co-operative Bank and appointing an Administrator to manage its affairs for such period, as may be specified by the Reserve Bank of India? This is the question that falls for consideration in this case.

3.The facts and circumstances in which the question arises are brief and simple and may be stated thus :

On inspection of Kalidasa Cooperative Bank Ltd. (respondent No.16) (hereinafter referred to as the Cooperative Bank or the Bank) made on June 30, 1994 under Section 35 read with Section 56 of the Banking Regulation Act the Reserve Bank of India (the appellant before us) found a number of serious irregularities in its affairs. It sent a copy of the inspection report to the Cooperative Bank and called the members of its board of directors for discussion on the findings in the report. It also forwarded a copy of the inspection report to the Joint Registrar, Cooperative Societies. The Joint Registrar advised t