Cooperative banks operate under state law for incorporation and management, while banking activities are regulated by central law, establishing a division of legislative competence.

JUDGMENT

This writ petition has been filed seeking the following reliefs:-

‘’1. Issue mandamus order under Article 226 and declare with Articles246(1); 254(1)(2) of the Constitution of India to the respondents, that the Acts “ The Kerala State Co-operative Societies Act 1969” and “ The Kerala State Co-operative Agricultural Development Banks Act , 1984” are unconstitutional and illegal and so inconsistent and so void from the commencement and enactment of the Acts.

2. Issue mandamus order under Article 226 and declare with Articles227(1); 235; 246(1); 254(1)(2) of the Constitution of India that the “Cooperative Arbitration Court” and Jurisdiction made under “ The Kerala State Co-operative Societies Act 1969” and “ The Kerala State Co-operative Agricultural Development Banks Act , 1984” misused for banking are unconstitutional and illegal and so void from the commencement and enactment of the Acts.

3. Grand such other reliefs as this Honorable Court deems fit for the issues in proper in the circumstances of the case, remedy for cheating by Govt., infiltrated into and hijacked the Legislature System, Executive System, Judiciary System and Administration by The Government of Kerala, and the employees party union and the hijacked Cooperative Society, converted to unconstitutional and illegal Bank, including the costs and expenses of this special WP(C). ‘’

2. The petitioner appears party-in-person. He submits that the functioning of Co-operative Banks outside the regulatory framework of the Banking Regulation Act , 1949 is illegal and unconstitutional. He refers to Article 246 of the Constitution of India and submits that the subject of ‘banking’ is a subject in List-I of the 7^th Schedule of the subject and that the enactment of the Kerala Co-operative Societies Act 1969 (hereinafter referred to as 'the 1969 Act) and the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (hereinafter referred to as 'the CARD Bank Act') enabling banking activity in the co-operative sector is beyond the legislative competence of the State Legislature. It is submitted that by virtue of sub-clause (2) of Article 13 of the , any law that takes away or abridges the rights conferred by Part-III of the Constitution shall be void to the extent of contravention. The petitioner also referred to the provisions of Article 254 of the and submits that where the State law is inconsistent with any Central law, the State law shall be void to the extent of inconsistency. It is submitted that the 1969 Act and the CARD Bank Act contain provisions excluding jurisdiction of all courts, including the High Court and the Supreme Court, and this is impermissible under the Constitution. It is submitted that the Co-operative Banks are engaging in banking business without a license from the Reserve Bank of India. It is submitted that the Co-operative Banks and CARD Banks are causing a debt trap for borrowers, and that valuable properties are being sold/purchased by the bank in auction at throwaway prices, causing loss to the borrowers. It is also submitted that the Co-operative Banks and CARD Banks are also proceeding against the personal property of the borrowers, and this violates Article 21 of the . It is submitted that on these grounds, the prayers sought for in this writ petition are liable to be granted.

3. Sri. P P. Thajudheen, the learned Special Government pleader, who appears for respondent Nos.1 to 4 would submit that the contentions taken by the petitioner are without any legal basis. It is submitted that the petitioner has availed credit facilities from the 6^th respondent bank. It is submitted that, on failure to repay the loan amount, the bank has initiated action in accordance with the