( 1 ) THE common question raised in all these Special Civil applications is relating to Constitutional validity of S. 71 of the Co-operative societies Act, Gujarat Act 10 of 1962 (hereinafter referred to as "the Act" ). Contention is that S. 71 cannot in any manner control the affairs of a Society, engaged in banking business. Such a Society, after the amendment brought about by the Banking Laws (Application to Co-operative Societies) Act. Central Act 23 of 1965, cannot have any relevance to such activities. On account of the said Central legislation, the provisions contained in the Act becomes ultra vires the powers of the State Legislature by virtue of provisions contained in Art. 245 of the Constitution.

( 2 ) LEARNED Counsels appearing in the case, while arguing the entire issue in detail, agreed to have all these petitions disposed of by a common judgment. They further prayed that this Court need not go into various questions of fact raised in these matters, for, they are to be challenged before the Authorities, who issued notices, requiring the Bank and its officers to show cause why action contemplated by S. 147 of the Act are not to be initiated. On this basis, we refrain from examining the various factual controversies raised by the respective petitioners. We are confining ourselves to the legal question as to whether S. 71 of the Act continues to be in force after the amendment of the Banking Regulation Act, 1949 (hereinafter referred to as "the Banking Regulation Act") as amended by Central act 23 of 1965, which came into force with effect from 1-3-1966.

( 3 ) ). It is common case of all the parties to these proceedings that concerned district Co-operative Banks are "co-operative Societies", coming within the definition of that expression under the Act. All these banks are Societies, registered under the Act and are doing business of banking, as defined in S. 5 of the Banking regulation Act. These banks carry out the business of banking by accepting deposits of money from the public for the purpose of lending or for investment. The money so accepted are repayable on demand or otherwise, withdrawable by cheque, draft, order or otherwise. Consequently, it is contended that these Societies are Banking companies. As such, they come under the purview of Banking Regulation Act, which is a Central Enactment. Provisions contained in the Gujarat Act can, under no circumstance, control the banking activities of these Co-operative Banks. Any provision for controlling the affairs of these banks in the Act will be beyond the legislative competence of the Gujarat Legislative Assembly. Entries 43, 44 and 45 in List I of Seventh Schedule authorises the Central Government and the Central government alone to legislate on Banking and Banking Corporations. Invoking the power under those Entries, Central Government enacted Banking Regulation Act, as amended by Act 23 of 1965. By that Amending Act, Co-operative Banks have been brought under the Banking Regulation Act. Co-operative Societies Act of gujarat has been enacted, invoking the powers under Entry 32 of List II of the seventh Schedule. The said enactment can, under no circumstances, enable the State government or its officers to impose any restriction in the activities of the Bank.

( 4 ) ). Argument advanced by learned Counsel representing the petitioners is that matters regarding incorporation, regulation and winding up of Banking Societies, even if registered under the Co-operative Societies Act would fall within Entry 43 of List I of the Seventh Schedule. Entry 45, being one taking, within its ambit anything and everything connected with Banking, should cover the banking activities of Co-operative Societies as well. Therefore, any society, even if it is registered under the Act, can be controlled by Central Legislation, coming under Entry 43 or Entry 45 of List I. Entry 32 in List II, though empowers the State Legislature to make laws with respect to the Co-ope