IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10^TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 496 OF 2013 (GM-RES)

BETWEEN:

SRI. H.M. RAMAIAH AGED ABOUT 78 YEARS, S/O LATE MUNISWAMY NAYAK, NO.1259/691, 13^TH CROSS, 2^ND STAGE, GIRINAGAR, BANGALORE - 560 085.

PROMOTER AND FOUNDER PRESIDENT OF CAUVERY URBAN CO-OPERATIVE BANK LTD., (UNDER LIQUIDATION) (5^TH RESPONDENT)

SMT. R.K. SARASWATHI W/O DR. H.V. KRISHNASWAMY AGED ABOUT 60 YEARS R/AT NO.1062, 7^TH 'A' MAIN Digitally III BLOCK, KORAMANGALA signed by BANGALORE - 560 034.

SUMA B N Location:

HIGH COURT SHAREHOLDER, MEMBER, SECRETARY OF OF ERSTWHILE MANAGING COMMITTEE OF KARNATAKA M/S CAUVEY URBAN CO-OPERATIVE BANK LTD., (UNDER LIQUIDATION) (5^TH RESPONDENT)

…PETITIONER (BY SRI. JAYAKUMAR S. PATIL SENIOR COUNSEL A/W SRI. SUBRAMANYA S UPASANA.,ADVOCATE)

AND:

1. THE EXECUTIVE DIRECTOR RESERVE BANK OF INDIA, CENTRAL OFFICE URBAN BANKS DEPARTMENTS GARMENT HOUSE, 1^ST FLOOR, WORLI, MUMBAI - 400 018.

2. THE GENERAL MANAGER RESERVE BANK OF INDIA, URBAN BANKS DEPARTMENT NO.10/3/8, P.B. NO. 5467 NRUPATHUNGA ROAD, BANGALORE - 560 001.

3. THE JOINT SECRETARY &

APPELLATE AUTHORITY MINISTRY OF FINANCE, DEPARTMENT OF ECONOMIC AFFAIRS (BANKING DIVISION) GOVT. OF INDIA JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI - 110 001.

4. THE REGISTRAR DEPT. OF CO-OPERATIVE SOCIETIES, GOVERNMENT OF KARNATAKA, NO.1 ALI-ASKAR ROAD, BANGALORE - 560 052.

5. CAUVERY URBAN CO-OPERATIVE BANK LTD., # 21, SHOPPING COMPLEX, 6^TH MAIN, 4^TH CROSS, MICO LAYOUT, B.T.M. 2^ND STAGE, BANGALORE - 560 076 REPRESENTED BY ITS O.L., …RESPONDENTS (BY SRI. MANIK B.T.,ADVOCATE FOR R1 & R2;

SRI. KUMAR M.N., ADVOCATE FOR R3; SRI. R.A. MACHAKANUR, AGA FOR R4;

SRI. P. ANAND., ADVOCATE FOR R5)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 09.03.2012 PASSED BY THE R3 VIDE ANNX-W; TO QUASH THE ORDER DATED 02.02.2004 PASSED BY R1 VIDE ANNX-H; DIRECT THE R1 AND 2 TO REVIVE THE R5 BANK BY CONSIDERING THE REVIVAL PACKAGE FILED BY THE PETITIONER ON BEHALF OF THE R5 BANK.

THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL

ORAL ORDER

This petition is originally by one H. M. Ramaiah, upon his demise, is substituted by one Smt. R. K. Saraswati claiming to be the erstwhile Secretary of one Cauvery Urban Co-operative Bank Ltd.,/respondent No.5 herein under liquidation seeking following reliefs;

"i ) A Writ/ Order/ Direction in the nature of certiorari to quash the order dated 09.03.2012 passed in Appeal No. 14(4)/2004-AC by the third respondent produced as Annexure-W.

ii) A Writ/ Order/ Direction in the nature of certiorari to quash the order no, UBD.WBS.BSD(IV)LR/10- 12.03.2035/2003-04 dated 02/02/2004 passed by the first respondent produced as Annexure-H.

iii) Direct the respondents 1 & 2 to revive the 5^th respondent bank by considering the revival package filed by the petitioner on behalf of the 5^th respondent bank.

iv. Pass such other order/s deem fit in the facts and circumstances of the case with cost of the proceedings throughout."

2. Brief facts of the case are;

(a) that the respondent No.5/bank was established in the year 1998, by the original petitioner H. M. Ramaiah as its Chief promoter. He had obtained the banking license from respondent Nos.1 and 2/Reserve Bank of India and had thus on compliance of the requirement of law had started the banking business. The respondent No.5/Bank was constituted primarily for the benefit of members of SC/ST community. The license thus granted was an exceptional one. It was permitted by the respondent Nos.1 and 2/RBI to raise Rs.20,00,000/- as share capital amongst the members. It has 2,042 members, of which 51% are belonging to SC/ST community.

(b). The Respondent No.5/bank was subjected to inspection by the respondent Nos.1 and 2/RBI during the month of October, 2000 and had raised certain queries related to the procedures adopted i