KOSHY, J.

The first appellant is a Co-operative Bank registered under the Kerala Co-operative Societies Act. The Bank was classified as Class IV Primary Agricultural Credit Society with effect from 1-7-1995. The business of the Bank includes acceptance of deposits of money for interest, distribution of loan amount to eligible members of the society, conducting chitty business, giving out loan amount to members against gold security, distribution of fertilizers to the agriculturists etc. According to the appellants working capital is more than Rs. 1.82 crores and the present deposit is more than Rs. 2 crores. It is also averred that appellant Bank was selected for the award of Banks Trophy. Considering the working capital, deposits, loan outstanding etc. the Board of Directors resolved to classify the Bank into Class III and a resolution was passed and forwarded to the Joint Registrar. Even though no action was taken to cancel the resolution, when prior approval was asked for appointing additional staff on account of reclassification and additional work load. It was refused by Ext. P5 on the ground that society was running on a loss of Rs. 19 lakhs and as per Circular No.