An appeal against the order of amalgamation of co-operative banks approved by the RBI is barred under Section 79 of the Chhattisgarh Co-operative Societies Act.

1. The writ petition has been filed by the petitioner assailing correctness and validity of order dated 19/07/2011 passed by the appellate authority - respondent No. 1, by which, the respondent No. 1 has set aside the order dated 18/01/2011 passed by the Registrar, Co - operative Societies, Chhattisgarh.

2. The petitioner is a co - operative bank registered under S.3 of the Chhattisgarh Co - operative Societies Act, 1960 (In short 'the Co - operative Act') and issued registration certificate (Annexure P2). The petitioner also holds banking license issued by the Reserve Bank of India (In short 'the RBI') under S.22(1) read with S.56 (O) of the Banking Regulations Act, 1949 (In short 'the Banking Act'), copy of which has been placed on record as Annexure P3.

3. The petitioner's case as stated in the writ petition is that the respondent No. 5 was a co - operative bank like the petitioner but there were lot of irregularities in its functioning and the Managing Committee of the respondent No. 5 - bank was superceded vide order dated 13/09/2006 (Annexure - P4) passed by the Registrar, Co - operative Societies. The prescribed authority was appointed to exercise powers and functions of the Managing Committee of the respondent - Bank.

4. Further case of the petitioner is that it took steps and initiated proceedings to see merger of the respondent - bank in the petitioner - bank and passed resolution dated 28/06/2007 (Annexure P5) in the meeting of Managing Committee / General Body and application was made on 09/07/2007 (Annexure P6) to the Registrar, Co - operative Societies for grant of permission to merge respondent - Bank with the petitioner bank. On 14/01/2008 (Annexure P7), again application was made to the Registrar, Co - operative Societies to approve proposal of merger. The petitioner bank had already passed a resolution on 04/01/2009 in its annual general meeting approving merger of respondent bank. Further case of the petitioner is that the respondent bank also convened its annual general meeting through its prescribed authority on 07/11/2009 (Annexure P9) in order to protect the interest of the members and share holders resolved to get respondent bank merged with the petitioner - bank and also to apply for cancellation of the registration of the merged bank. A merger scheme was formulated and approved in its meeting dated 26/05/2010. On 15/06/2010, the respondent bank through prescribed authority resolved to get merged with the petitioner bank by accepting the merger scheme, which was sent to the RBI. The RBI issued No Objection Certificate on 27/12/2010 (Annexure - P14). The Registrar, Co - operative Societies, upon receiving the No Objection Certificate of RBI, passed an order under S.18(1) of the Co - operative Act.

5. The assets and liabilities of respondent - Bilasa Mahila Nagarik Sahkari Bank Maryadit, Bilaspur were amalgamated with the petitioner - bank with effect from 19/01/2011. The registration of respondent - bank was also cancelled.

6. The aforesaid order dated 18/01/2011 (Annexure - P15) passed by the Registrar, Co - operative Societies, in exercise of power under S.18(1) of the Co - operative Societies Act, was challenged by way of appeal by the respondent No. 2 before the respondent No. 1 the appellate authority. The respondent No. 1 allowed the appeal holding that the order dated 18/01/2011 was illegal. It is this order, which is under challenge in this writ petition.

7. Learned Senior Counsel has raised many fold contentions. It was contended that the