In this writ petition, petitioner has questioned the order

dated 09^th March, 2017/19^th June, 2017 (Annexure-AF) to the

writ petition passed by the respondent No.5 and also seeking

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appropriate direction to the respondent No.5 as per Annexure-AJ

to the writ petition, and such other consequential relief.

2.

Facts in nutshell are that, petitioner is a Co-operative

Bank registered under the Karnataka Co-operative Societies Act,

1959. The petitioner-Bank is carrying on the banking business

with due licence from the Reserve Bank of India (for brevity

hereinafter referred to as <RBI=). It is the case of the petitioner-

Bank that RBI has conducted periodical inspections and audit

accounts of the petitioner-Bank. The paid up share capital of the

petitioner-Bank was Rs.5.14 crore as on 31^st March, 2016 and

had advanced Rs.55.21 crore to its members in the form of

various types of loans. The petitioner-Bank has secured the

deposit of Rs.81.96 crore under various types of deposits and

the entire statement of financial position of the petitioner-Bank

is set out at Annexure-A to the writ petition.

3.

It is further stated in the petition that there were

about 7941 members during 1996 and the petitioner-Bank used

to arrange breakfast/lunch to the Members during Annual

General Body Meetings and as the membership has increased

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relatively, so also, in order to avoid chaos during the Annual

General Body Meetings, from the year 1994-95 the petitioner-

Bank decided to give steel plates to its members in lieu of

arranging breakfast/lunch and certain arrangements have been

made even for providing sweet packets as per Annual General

Body Meeting resolution dated 26^th September, 2004. The said

aspect was not objected by RBI or by auditors or the

respondent-Authorities at the relevant financial year audits.

However, one Sri Eshwar, who is a dismissed employee of the

petitioner-Bank, lodged complaint to the respondent No.4

alleging that the petitioner-Bank is presenting gifts to its

members at time of Annual General Body Meetings without the

permission of the respondent-Authority and on the basis of the

said complaint, respondent No.4-Authority initiated enquiry

under Section 64 of the Act. The Inquiry Report would reveal

that presenting articles to the Members of the petitioner-Bank is

in violation of Section 56(2) of the Act and thereafter,

respondent No.4 has passed an order dated 13^th December,

2013 in exercise of powers under Section 68 of the Act, directing

the petitioner-Bank to recover the said amount from the

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concerned Board of Directors and Secretary (Annexure-F) of the

relevant period. Being aggrieved by the same, the petitioner-

Bank has filed Writ Petitions No.43950-58 of 2015 before this

Court, and this court by order dated 07^th January, 2021, allowed

the writ petitions holding that the action of the petitioner-Bank is

not in contravention of Section 56(2) of the Act. It is stated that

during pendency of the aforementioned writ petitions, petitioner-

Bank has stopped giving articles in kind to its members during

Annual General Body Meetings and the said issue was taken into

consideration in the Annual General Body Meeting on 28^th

September, 2011 and it was resolved that the articles, in kind, to

be given to the Members in lieu of Breakfast/lunch/sweet

packets at the time of Annual General Body Meeting for the

same value within the budgetary provision sanctioned by the

General Body every year since 1994-95. At the time of the

auditing of the books of account of the petitioner-Bank,

respondent-authorities have raised objection relating to giving

articles in kind to its members and the enquiry was conducted

under Section 64 of the Act and thereafter, the respondent-

authorities by order dated 24^th July, 2015 (Annexure-M),

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rejected the proposal made by the petitioner-Bank under Section

68 of the Act and directed to recover from the erstwhile

Members of the Board. The said aspect has been challenged by

the petitioner-Bank in Writ P