JUDGMENT :

1. The Repatriates Co-operative Finance and Development Bank shortly know as REPCO Bank is a Multi-State Co-operative Society (in short “MSCS”) registered in the year 1969 under the Multi State Co-operative Societies Act. Subsequently when Multi-State Co-operative Societies Act, 1942, repealed and replacing by Multi-State Co-operative Societies Act, 2002 (Act 39 of 2002), the bye-laws of the REPCO Bank were amended and duly registered with the Central Registrar of Co-operative Societies, New Delhi. The Central Government on the Recommendation of Reserve Bank of India, through its Ministry of Finance, issued G.O.No.626, dated 19/01/1972, wherein it was clarified, the prohibition for the Co-operative Society other than Co-operative Bank from using the word “BANK” as part of its name shall not apply to REPCO Bank, which is not a Co-operative Bank but a society authorised to accept deposits of money only from its members and not from public.

2. The bye-laws of the REPCO Bank categories its members as:

(i) Ordinary Members -A class members

(ii) Nominal/associate members -B class members.

3. Mr.L.Prakash (petitioner) is a ‘A’ class member in the REPCO Bank (3rd respondent). Alleging that REPCO Bank indulges in Banking activities without license from the Reserve Bank of India (in short “RBI”) and also collecting deposits from nominal members contrary to the RBI guidelines, has first filed W.P. 29390/2016 seeking Writ of Mandamus to direct the Union of India and the Reserve Bank of India to take necessary action to prevent the REPCO Bank from carrying on banking transaction and to take action against the erring officials of REPCO Bank.

4. The prayer in this writ petition was based on the circulars of the RBI, instruction from Central Registrar of Multi State Co-operative Societies and the judgment of the Hon’ble Rajasthan High Court in Sajjan Singh Bahti –vs- State of Rajasthan and others which categorically restrains REPCO Bank from carrying on banking activities and collecting deposits from nominal members.

5. Pendency of his writ petition 29390/2016, the 3rd respondent Head Office has issued a circular dated 25/02/2019 wherein, all its branches were informed to keep the admission of ‘B’ class members in abeyance until further orders. Further, it has decided to admit other than repatriates as ‘A’ class member of the bank, as per the provision available in the bye-laws of the bank. Apparently, this decision has been taken by the 3rd respondent, in view of the ordinance promulgated by the President of India Banning of unregulated deposit schemes. This ordinance later became an Act of Parliament (Act 21 of 2019) and has come into effect. As per this Act, the regulators and the permitted regulated deposit scheme are mentioned in the First Schedule of the Act. According to this schedule, the Central Registrar, Multi State Co-operative Societies as a “Regulator” shall permit a Multi State Co-operative Society registered under the Multi State Co-operative Societies, Act, 2002 those schemes or an arrangements with acceptance of deposits from voting members only. As per the bye-laws of the REPCO Bank, it does not confer voting right to a ‘B’ class member. In order to receive deposits from ‘B’ class members, who are not repatriates but otherwise eligible to be ‘A’ class members, the 3rd respondent has issued the circular dated 25/02/2019, which is under challenge in W.P. 9623/2019.

6. The learned counsel appearing for the petitioner in both the writ petitions would emphasis that the third respondent-society though permitted to use the word “Bank” after its name, it cannot indulge in banking activities. It is not a bank in true sense so as to collect the deposits from the ordinary members. The restriction imposed on collecting the deposits from the ordinary members has been breached by the third respondent. The nominal or associate memb