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2017 Supreme(AP) 403
IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
SURESH KUMAR KAIT, N. BALAYOGI, JJ.
Aryan Co-operative Urban Bank Ltd. & another - Appellants
Vs.
A.P. Womens Co-operative Finance Corporation Ltd. & others - Respondents
CCCA No. 320 of 2003
Decided On : 21-09-2017
Advocate Appeared:
For the Appellants : Sri Kishore Rai
For the Respondent: Sri J.S. Raju, A.P. Womens
Headnote:
Andhra Pradesh Co-operative Act,. 1964 - Section 61, 121(2), 126 and 61(1)(d) - Appellants have assailed the order passed by the VII-Additional Chief Judge City Civil Court aforesaid suit has been decreed for from the date of the suit till the date of realization - Respondent/plaintiff - Respondent-Corporation filed aforementioned suit by stating that the Women Co-operative Finance Corporation was established in the year on the eve of the International Women Year. The twin objectives of International Women Year were; promotion of equality between men and women and the active involvement of women in National development - Corporation had undertaken the massive programme of employment oriented Agro industries, Cottage and small scale industries by providing technical assistance, financial assistance - Corporation in order to raise funds advanced loans encouraged thrifts and invested surplus funds by depositing – Held, Construed and it has to be complied with accordingly words touching the business of a society in Section must be given their full import bearing in mind the object of the Legislation - Disputes are not to be restricted to matters arising from and out of the business of the society but are also extended to matters which are in some way concerned or related to the business of the society - Bank was to accept deposits and pay back to the depositors along with interest, the procedure contemplated under Section has not been complied with before instituting the suit - Plaintiff against the District Co-operative Central Bank Limited without giving the requisite notice under Section is not properly instituted - Accordingly the said Court set aside the order of the trial Court - Court held that filing of any suit is barred unless and until notice thereunder is given to the Registrar in respect of any act touching the constitution management or the business of the Society Admittedly in the present case no such notice is given to the Bank nor to the Registrar of Co-operative Societies - We allow the present appeal – Present Appeal is Allowed.
Suresh Kumar Kait, J.
Vide the present appeal, the appellants have assailed the order dated 11th February 2003, passed by the VII-Additional Chief Judge, City Civil Court, Hyderabad, in O.S.No.246 of 1998, whereby, the aforesaid suit has been decreed for Rs.1,95,30,891.55 ps., with interest @ 13.5% p.a. from the date of the suit till the date of realization. The 1st respondent/plaintiff- Corporation was directed to give credit to the tune of Rs.1,65,76,205/- made by the 1st appellant-Bank during the pendency of the suit on the respective dates of payments.
2. The 1st respondent-Corporation filed aforementioned suit by stating that the A.P. Women Co-operative Finance Corporation Ltd., Ameerpet, Hyderabad (hereinafter shall be referred to as Corporation) was established in the year 1975 on the eve of the International Women Year. The twin objectives of International Women Year were; promotion of equality between men and women and the active involvement of women in National development. The Corporation had undertaken the massive programme of employment oriented Agro industries, Cottage and small scale industries by providing technical assistance, financial assistance etc. The Corporation, in order to raise funds, advanced loans, encouraged thrifts and invested surplus funds by depositing in the 1st appellant-Bank (hereinafter shall be referred to as the Bank), as under :
1. Rs.25,00,000/- (Rupees Twenty Five Lakhs) invested on 5-7-1993 for 90 days @ 14% and renewed for 90 days upto 27-3-1995 and further one year upto 27-3-1996 at 13% and further renewed upto date at the same rate.
2. Rs.24,00,000/- (Rupees Twenty Four Lakhs) invested for one year at 13% upto 31-3-1995 and renewed for a further period of one year upto 31-3-1996 at 13% and further renewed upto date at the same rate.
3. Rs.14,00,000/- (Rupees Fourteen Lakhs only) invested for one year upto 31-3-1995 and renewed for a further period of one year upto 31- 3-1996 at 13% and further renewed upto date at the same rate.
4. Rs.12,00,000/- (Rupees Twelve Lakhs only) invested for one year upto 31-3-1995 and renewed for a further period of one year upto 31- 3-1996 at 13% and further renewed upto date at the same rate.
3. Before aforementioned deposits, the Administrative Officer of the Bank addressed a letter dated 14.07.1994 to the Corporation to mobilise deposits in their Bank and promised that they will pay more interest than the other Nationalised Banks i.e. @ 10.5% p.a. on the deposited amount. Basing on the above noted letter, the Corporation was convicted and issued Cheques bearing Nos.740890 and 740891, both dated 15.07.1994, for Rs.50,00,000/- each, in the Bank, with an undertaking to deposit the above said two amounts for a period of one year with interest @ 10.5% p.a. It was agreed between the Bank and the Corporation to pay interest quarterly. Accordingly, the Corporation requested the Bank to send interest on earlier FDRs as under :
| F.D.R. & Date | F.D.R. Amount (Rs.) | Qly Int. payable For the period | |
| 1. | 6892 dt.31-3-1994 | 25,00,000/- | 31-3-94 to 28-6-94 |
| 2. | 6896 dt.31-3-1994 | 14,00,000/- | -do- |
| 3. | 6895 dt.31-3-1994 | 12,00,000/- | -do- |
| 4. | 6893 dt.31-3-1994 | 5,00,000/- | -do- |
| 5. | 6894 dt.31-3-1994 | 24,00,000/- | -do- |
However, the 3rd respondent/3rd defendant i.e. the Chief Executive Officer of the Bank, instead of repaying the interest, by letter dated 05.04.1995, requested to renew FDR Nos.6892 to 6896 for a further period of one year. By letter dated 26.07.1995, the 3rd respondent requested to renew FDR Nos.3311 and 3312 of Rs.50,00,000/- each, carrying interest @ 10.5% p.a. The 3rd respondent assured to pay interest quarterly @ 13.5% p.a. if the FDRs are renewed and requested to send two FDRs fell due on 15.07.1995. Accordingly, the Corporation, by a letter dated 28.07.1995, agreed for the renewal for a furt
