1. Irinjalakuda Co-operative Agricultural and Rural Development Bank Ltd. No.R 312 registered under the provisions of the Kerala Co-operative Societies Act, 1969, hereinafter referred to as the “KCS Act”, has filed this writ petition through its President and Secretary. Its area of operation in terms of approved bye-laws is Mukundapuram and Kodungalloor taluks in Thrissur District. It operates through its branches at Irinjalakuda, Kodungalloor, Chalakudy, Kodakara and Mala.

2. Thefirst respondent is the kerala State Co-operative Agricultural and Rural Development Bank Limited (“KSCARD Bank”, for short), which is so Christened by the operation of section 2(a) of the kerala state Co-operative (Agricultural and Rural Development Banks) Act, 1984, hereinafter referred to as the “CARD Act”.

3. Primary banks which are registered under the KCS Act as Primary Co-operative Agricultural and Rural Development Bank Limited and admitted as members of the first respondent, including those falling under the inclusive provision of Section 2(h) of the CARD Act, are primary banks as defined in that provision for the purpose of that Act.

4. In 1997, the Government of Kerala decided to provide for the creation of a Primary Co-operative Agricultural and Rural Development bank, hereinafter, “PCARD Bank”, for each taluk. That decision was challenged before this Court on the ground that it would result in adverse consequences to the existing Agricultural and Rural Development Banks which provide soft loans to the agricultural sector covering more than one taluk and Would result in compulsory depletion of the area of operation of the existing banks thereby curtailing their membership and activity. This Court heard a bunch of matters in relation to that and issued judgment in WP(C). 10603/2000 and connected matters directing that the Government has to take a decision de novo before the commencement of the activities of any PCARDBs by arriving at a policy decision in the matter.

5. When Ext.P1 was issued by the first respondent KSCARD Bank, the petitioner filed WP(C). 11072/2004. That matter and WP(C). 15705/2004 Were decided as per Ext.P2 judgment. This Court, taking into consideration the counter affidavit on behalf of the Respondents therein that it is left to the discretion of the societies to constitute separate societies or affiliate with existing banks, held that the decision contained in Ext.P1 has no legal stand. What was produced before this Court by the Government in Ext.P2 case was a Government decision dated 21-11-2003 which is Ext.P3 herein. Ext.P2 judgment was issued preserving the right of the petitioner to challenge the said decision.

6. This writ petition is filed seeking to set aside the impugned Ext.P3 decision dated 21-11-2003. Also under challenge is a consequential decision (Ext.P4), by which an administrator had been appointed for the fifth respondent kodungallor Taluk Primary Co-operative Agricultural Bank Limited.

7. As per the impugned Ext.P3. which is the essential bone of contentions between the parties, the Government had earmarked six PCARD Banks to be permitted to function . It appears that after Ext.P2 judgment was rendered, the Government obtained the views of the Registrar of Co-operative Societies and consequently, out of the 17 PCARD Banks which were registered following Go (P).112/97/Co-operation dated 3-9-1997, it was decided that six such banks, including the fifth respondent, could continue their activity while the other 11 have to be wound up. The challenge to this action is on the ground that Ext.P3 does not disclose any reason whatsoever for the decision contained therein and that there is no rhyme or reason relatable to any material on record to sustain the decision contained in Ext.P3, conferring the benefit to the six banks mentioned therein. It is also the case of the petitioner that the decision contained in Ext.P3 is contrary to the views of the Registrar of Co-operative Societies to the effect