Back
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Dhiraj Singh Thakur, Ravi Cheemalapati
Krishna District Cooperative Central Bank Limited – Appellant
Versus
Dasari Venkata Srinivasa Rao – Respondent
JUDGMENT :
DHIRAJ SINGH THAKUR, CJ.
The present Writ Appeal has been preferred against judgment and order dated 09.07.2024 passed in writ petition No.5957 of 2024.
2. The learned single Judge has allowed the writ petition and held that the Registrar of Cooperative Societies had no jurisdiction to invoke its powers under the Andhra Pradesh Cooperative Societies Act, 1964 (hereinafter referred to as, "the Act of 1964") for recovery of debt due from the petitioner – respondent No.1 herein and that respondent No.5 in the writ petition that is the Krishna District Cooperative Central Bank Limited would have to resort to the procedure as prescribed under the Debt Recovery Tribunals Act, 1993 (hereinafter referred to as "the Act of 1993"). For arriving at the aforementioned conclusion, reliance was placed by the learned single Judge on a Constitution Bench judgment of the Apex Court, in the case of Pandurang Ganpati Chaugule vs. Vishwasrao Patil Murgud Sahakari Bank Limited , [ (2020) 9 SCC 215 ]
3. With a view to understand the issue in the backdrop of which the present controversy has risen, it is necessary to briefly state the material facts:
4. The petitioner, Dasari Venkata Srinivasa Rao
Cooperative banks are categorized under the Banking Regulations Act, 1949, thereby requiring debt recovery through federal legislation and not state mechanisms.
The jurisdiction of cooperative banks under debt recovery laws remains ambiguous, necessitating authoritative clarification on their status within the Recovery of Debts Due to Banks and Financial Ins....
Cooperative banks operate under state law for incorporation and management, while banking activities are regulated by central law, establishing a division of legislative competence.
A cooperative society must demonstrate its multi-state operations to be registered under the Multi-State Cooperative Societies Act, 2002, as per legal requirements and Reserve Bank directives.
Point of Law : Section 74A of 1969 Act was incorporated to ensure that benefits of DICGC Act, 1969 were extended to Co-operative Banks as well.
The court established that State legislation under the Maharashtra Co-operative Societies Act can apply to banking cooperatives without infringing on Central jurisdiction, affirming the dual regulato....
High Court cannot in exercise of its power under Article 226 of the Constitution of India can direct the bank to positively consider the benefit of one time settlement to writ petitioner.
The court ruled that cooperative banks fall within the definition of 'Financial Establishment' under the MPID Act, thereby affirming the Act's applicability to such entities despite their regulation ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
