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2016 Supreme(Raj) 237

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
P.K. Lohra, J.
Samri Gram Seva Sahkari Samiti & Ors. - Petitioners
Versus
State of Rajasthan and others - Respondents
S.B. Civil Writ Petition Nos. 2837, 2685, 2686, 2687, 2688, 2689, 2696, 2697, 2706, 2731, 2732, 2839, 2840, 2841, 2842, 2843, 2844, 2845, 2846, 2847, 2848, 3043, 3045, 3054, 3055, 3060, 3069, 3071, 3098, 3099, 3105, 3107, 3108, 3109, 3111, 3112, 3113, 3114, 3115, 3116, 3117, 3328, 3471, 3472, 3473, 3474, 3475, 3476, 3834, 3838, 3859, 3860, 3862, 3863, 4055, 4056, 4058, 4059, 4063, 4064, 4068, 4070, 4076, 4078, 4079, 4084, 4085, 4087, 4089, 4090, 4105, 4106, 4113, 4114, 4115, 4116, 4117, 4119, 4301, 3840, 3876, 3880, 3881, 3882, 4091, 4103, 4120, 4124, 4127, 4130, 4131, 4134, 4145, 4146, 4277, 4278, 4279, 4280, 4283, 4284, 4285, 4286, 4287, 4288, 4289, 4290, 4291, 4292, 4293, 4295, 4296, 4297, 4298, 4299, 4300, 4302, 4303, 4304, 4305, 4306, 4307, 4308, 4309, 4310, 4311, 4312, 4313, 4314, 4315, 4316, 4317, 4318, 4319, 4320, 4321, 4322, 4323, 4324, 4325, 4326, 4327, 4328, 4329, 4330, 4331, 4332, 4346, 4347, 4348, 4349, 4350, 4351, 4352, 4353, 4717, 4718, 4719, 4720, 4721, 4722, 4723, 4724, 4725, 4726, 4727, 4728, 4729, 4730, 4731, 4732, 4732, 4734, 4735, 4736, 4737, 4738, 4739, 4740, 4741, 4742, 4743, 4744, 4745, 4746, 4747, 4748, 4749, 4750, 4751, 4752, 4753, 4754, 4755, 4756, 4757, 4758, 4759, 4791, 4798, 4799, 4800, 4801, 4802, 4807, 4808, 4809, 4810, 4812, 4813, 4814, 4815, 4815, 4816, 4817, 4818, 4819, 4820, 4821, 4822, 4823, 4824, 4825, 4826, 4827, 4828, 4829, 4830, 4832, 4833, 4834, 4835, 4836, 4837, 4838, 4839, 4840, 4841, 4842, 4843, 4844, 4845, 4846, 4847, 4848, 4849, 4850, 4851, 4852, 4853, 4854, 4855, 4856, 4857, 4858, 4859, 4860, 4861, 4887, 4888, 4898, 4899, 4902, 4900, 4901, 4903, 4904, 4905, 4906, 4907, 4908, 4909, 4910, 4911, 4912, 4913, 4914, 4915, 4916, 4917, 4918, 4919, 4920, 4921, 4923, 4927, 4929, 4930, 4931, 4932, 4933, 4934, 4935, 4936, 4937, 4974, 5030, 5115, 5118, 5119, 5120, 5125, 5127, 5136, 5137, 5138, 5233, 5234, 5242, 5235, 5236, 5237, 5238, 5239, 5240, 5241, 5246, 5247, 5249, 5255, 5257, 5261, 5262, 5263, 5264, 5265, 5266, 5267, 5268, 5330, 5331, 5332, 5347, 5348, 5349, 5636, 5650, 5662, 5664, 5665, 5682, 5725, 5726, 5727, 5728, 5730, 5732, 5733, 5734, 5735, 5736, 5737, 5748, 5752, 5754, 5755, 5756, 5757, 5758, 5759, 5760, 5761, 5762, 5763, 5764, 5765, 5772, 5805, 5808, 5810, 5832, 5833, 5834, 5835, 5836, 5867, 5872, 5868, 5870, 5871, 5873, 5877, 5879, 5882, 5883, 5884, 5885, 5886, 5889, 5893, 5894, 5895, 5896, 5897, 5898, 5900, 5901, 5902, 5903, 5904, 5905, 5906, 5908, 5909, 5910, 5911, 5912, 5913, 5593, 6044, 6045, 6046, 6047, 6048, 6049, 6050, 6060, 6061, 6062, 6063, 6064, 6065, 6066, 6067, 6068, 6069, 6070, 6071, 6072, 6073, 6074, 6075, 6231, 6269, 6282, 6284, 6286, 6288 of 2016
Decided On : 03-06-2016

Advocates:
Advocate Appeared:
For the Petitioners: Mr. A.K. Choudhary, Mr. Suresh Charan, Mr. Dinesh Choudhary, Mr. Sharwan Kala, Mr. Deepak Kanojiya, Mr. Shambhoo Singh, Mr. Vineet R. Dave
For the Respondents: Dr. P.S. Bhati, Mr. S.S. Rathore
For the various District Central Cooperative Banks : Mr. Parbat Singh, Mr. Surendra Singh Choudhary, Mr. Harish Purohit, Mr. B.S. Sandhu

Headnote:

Rajasthan Cooperative Societies Act, 2001 – Section 30-B, 51, 125 - Banking Regulations Act, 1949 - Section 22 - Primary Agriculture Credit Cooperative Society - Perpetual succession – Succinctly stated the facts are that petitioner-societies are registered under the Rajasthan Cooperative Societies Act, 2001 enjoying the status of Primary Agriculture Credit Cooperative Society (PACS). Being registered co-operative societies, the petitioners are body-corporate having perpetual succession and common seal – Societies are authorised to hold property, enter into contracts, institute and defend suit and other legal proceedings and to undertake all these activities in furtherance of the aims and objects of their constitution – Essentially, in most of the petitions, petitioner-societies have assailed various orders/communications issued by the second respondent, Registrar Cooperative Societies, Jaipur – Grievance of the petitioner-societies is against communication whereby Registrar has issued necessary instructions to all the societies (PACS/LAMPS) not to carry on banking activities in adherence of directions issued by the Division Bench of this Court and Supreme Court and interim order passed by the Supreme Court in SLP –Held, although Act of 1949 is not applicable vis-à-vis petitioner-societies but the petitioner-societies are not entitled to carry on banking activities as their status is not akin to Apex Cooperative Bank, District Central Cooperative Bank and Primary Cooperative Bank in want of declaration as such under Section 2(u) proviso of the NABARD Act and without licence of banking under Section 22 of the Act of 1949 – (v) The respondents are directed to ensure complete autonomy to the petitioner-societies in all financial and internal administrative matters as mandated by Section 30-B of the Act of 2001 – Respondents are further expected to make endeavour for promotion of cooperative movement by providing necessary support, encouragement and assistance to the cooperative societies and also to depoliticize cooperatives in adherence of National Cooperative Policy, 2002 – (vi) It is further directed that respondents may take effective measures in the best interest of petitioner-societies, which are at the grass-root level so that the peasant/farmer members of the societies may reap the fruits of various welfare schemes, interest subsidy and all other subsidies for which they are entitled –(vii) The respondents are also expected to float such schemes which may prove beneficial in revamping the petitioner-societies and augment their financial self-reliance for strengthening three tier short-term cooperative credit delivery system –Ordered Accordingly.

ORDER :

P.K. Lohra, J.

The cluster of all these 437 petitions are broadly founded on identical facts and the question of law involved therein are also common, therefore, all these petitions are heard together and disposed of by this common order.

Succinctly stated the facts are that petitioner-societies are registered under the Rajasthan Cooperative Societies Act, 2001 (for short, 'Act of 2001') enjoying the status of Primary Agriculture Credit Cooperative Society (PACS). Being registered co-operative societies, the petitioners are body-corporate having perpetual succession and common seal. The societies are authorised to hold property, enter into contracts, institute and defend suit and other legal proceedings and to undertake all these activities in furtherance of the aims and objects of their constitution. Essentially, in most of the petitions, petitioner-societies have assailed various orders/communications issued by the second respondent, Registrar Cooperative Societies, Jaipur (for short, 'Registrar'). The grievance of the petitioner-societies is against communication dated 16th of June, 2015, whereby Registrar has issued necessary instructions to all the societies (PACS/LAMPS) not to carry on banking activities in adherence of directions issued by the Division Bench of this Court and Supreme Court and interim order passed by the Supreme Court in SLP (C) No. 16316 of 2015. That apart, the petitioner-societies have also questioned the subsequent/consequential orders issued by the Registrar from time to time. An affirmative attempt is also made, at the behest of the petitioner-societies, to assail the impugned communication dated 2nd of December, 2015, whereby Registrar has issued certain directions in the matter of disbursement of loans to the agriculturist members of the societies under the Kisan Credit Card (KCC) Schemes.

2. Precisely, the petitioners have voiced their grievances against the impugned communications on the plank that adherence of these orders/communications would prove detrimental to their interests and may result in thwarting the very aims and objects for which societies are formed. An attempt is also made by the petitioner-societies to castigate the impugned orders/communications as mala fide and outcome of colourable exercise of powers. The petitioner-societies have also romped in Section 30-B of the Act of 2001, whereby the societies are endowed with autonomy in all financial and internal administrative matters. Sections 51 and 125 of the Act of 2001 are also referred to by the petitioner-societies for ventilating their grievance against the impugned orders/communications. As per version of the petitioners, the impugned communications are in complete derogation to sub-section (6) of Section 51 of the Act of 2001 and the mandate of Section 125 of the Act of 2001. Asserting the separate and distinct entity of each societies, the petitioners have also averred in the writ petitions that respondent-Registrar is not authorised to undermine their status as a body-corporate by reducing their status as business correspondent (BC) or business correspondent agent (BCA) of the District Central Cooperative Bank. In totality, the petitioner-societies have made an affirmative attempt to question the legality and propriety of all the impugned communications by urging with emphasis that these communications would jeopardise their financial autonomy and may eventually disrupt the societies due to financial crunch and stringencies. In the matter of disbursement of ST loans to KCC account-holders, the petitioner-societies have also laid challenge to order/communication dated 2nd of December, 2015 by categorizing the same as de-hors the spirit of policy making agency i.e. NABARD besides other grounds.

3. On behalf of respondent, State of Rajasthan and Registrar, reply to the writ petition is submitted. In the return, the respondents have specifically pleaded that a primary agriculture credit society is not authorised to carry
















































































































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