Rajasthan High Court
Honble N.L. TIBREWAL, J.
M/s. Phoneix Impex - Appellant
Versus
State of Rajasthan and Others - Respondents
S.B. Civil Writ Petition No. 1365 of 1997
Decided On : November 10, 1997
The contention of the learned counsel for the petitioner cannot be accepted that a Co-operative Bank falls in the fold of Act of 1993 as a `banking company referred to under the Act of 1949. As per the Amending Act 1963, a Co-operative Bank is construed as a bank in order to bring Co-operative Banks under the principal Act of 1949 for the purpose of regulating banking business to the extent specified in part V. Still, a Co-operative Bank cannot be deemed ``a banking company or a company registered and incorporated under the Companies Act, 1956 for the purpose of Section 2(d) of the Act of 1993. The expression `banking company in Section 2(d) of the Act of 1993 will have the same meaning as defined in clause (c) and (d) of Section 5 of the Act of 1949. In other words, it should be a company registered and incorporated under the Companies Act, 1956 and transact the business of banking in India. The co-operative society being registered and incorporated under the Act of 1965 is not a company registered under the Companies Act, 1956. (Para 12)
(2). The crucial question which calls for decision in this petition is; whether the provisions of the Act of 1993 are applicable to a co-operative bank established and registered under the Act of 1965 for recovering debts due to its members ?
(3). In order to resolve the above controversy it is necessary to notice the scheme and relevant provisions of the Act of 1965 and 1993. The Rajasthan Co-operative Societies Act, 1965 came to be enacted to consolidate and amend the law relating to co-operative societies in the State of Rajasthan as Pre-amble of the Act manifests. The various provisions contained in the Act also show that the Legislature was keen to provide that ordinarily the co- operative societies should not be dragged in Civil Courts and there should be comparatively a clean and speedyremedy for settlement of disputes. The Act and the Rules framed thereunder, relating to settlement of disputes, provide a complete Code touching the constitution, management or business of a co- operative society arising amongst members, between a member and the society, between the society or its committee and employees and between the society and the surety of a member. Section 75 provides that all disputes touching constitution, management or the business of a co-operative society shall be referred to the Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. Chapter XII provides the modes of recovery of any debt or outstanding demand due to the society by any member, present or past or deceased, by sale ofthe property or any interest therein. The Registrar or any person empowered by him in this behalf, while exercising any power under the Act for the recovery of any amount by attachment of sale etc., is a Civil Court for the purpose of Article 136 of the First Schedule to the Limitation Act. Chapter XIII deals with - provisions of appeal, revision and review. The Rajasthan State Co-operative Tribunal is constitu-ted under Section 123. A person to be qualified for appointment as the Presiding Officer of the Tribunal should be either a retired Judge of High Court, a District Judge present or retired, or a Registrar of Co-operative Society having served as such for not less than three years in any State of India. Section 123 deals with constitution and appeals to the Tribunal. Section 124 provides appeals to other
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