IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

215 (1) LPA-491-2021 (O&M)

Date of Decision: 09.09.2025 The Kapurthala Central Cooperative Bank and others ....Appellants Versus State of Punjab and others ....Respondents (2) LPA-492-2021 (O&M)

Bachhauri Multipurpose Cooperative Agriculture Service Society Limited and others ....Appellants Versus State of Punjab and others ....Respondents (3) LPA-494-2021 (O&M)

Ramdaspur Multipurpose Cooperative Agricultural Service Society Limited and others ....Appellants Versus State of Punjab and others ....Respondents (4) LPA-495-2021 (O&M)

Parminder Singh Pannu and others ....Appellants Versus State of Punjab and others ....Respondents (5) LPA-625-2021 (O&M)

Harjit Singh and others ....Appellants Versus State of Punjab and others ....Respondents CORAM: HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI HON'BLE MR. JUSTICE VIKAS SURI ----

Present: Mr. D.V.Sharma, Senior Advocate with Ms. Shivani Sharma, Advocate for the appellant(s).

Mr. Rahul Rampal, Additional Advocate General, Punjab.

Mr. Ashwani Prashar, Advocate for respondent No.3 – Punjab State Co-operative Bank Limited (in LPAs No.491, 492, 494 and 495 of 2021).

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Harsimran Singh Sethi, J. (Oral)

1. The present five appeals, the details of which are mentioned in the heading, are being disposed of through a common order as common question of law is involved in all the cases.

2. The present appeals are filed against the judgment of learned Single Judge, whereby the objections filed against the proposed amalgamation of District Central Co-operative Banks with Punjab State Co-

operative Banks, are rejected.

3. The Learned Senior Counsel appearing on behalf of the appellant(s) submits that certain procedures are mandatory for the amalgamation of the banks, as envisaged under the Punjab Cooperative Societies Act, 1961 (hereinafter for short to be referred as ‘the 1961 Act’).

Learned Senior Counsel for the appellant(s) further submits that Section 70-A of the 1961 Act, deals with winding up, reconstruction, supersession of society etc. and Section 70-A (1) deals with amalgamation of such banks and prescribes certain conditions under which the same can be done, but prior approval of Reserve Bank of India required for amalgamation of banks, is missing in the present cases.

4. Learned Senior Counsel for the appellant(s) further submits that even as of now, no final approval of the Reserve Bank of India has been received and rather, the same has been declined on 22.12.2021 hence, the order dated 29.12.2020 passed by the Registrar Co-operative Society, cannot be brought into operation qua amalgamation of the banks.

5. The learned counsels appearing on behalf of the respondent-State as well as Punjab State Co-operative Bank Limited submit that a bare perusal of the order dated 29.12.2020 shows that the principle approval for amalgamation had already been received by the Reserve Bank of India on 08.06.2020, copy of which has already been brought on record before the learned Single Judge as Annexure P-4 hence, the approval as required under Section 70-A (1) of the 1961 Act, stands duly complied with.

6. The learned State counsel submits that the approval was obtained before initiating the process of amalgamation, which also find mentioned in the impugned order dated 12.05.2021.

7. We have heard learned counsel for the parties and have gone through the record with their able assistance.

8. In order to appreciate the said fact that the prior approval of the Reserve Bank of India needed for amalgamation, Section 70-A (1) of the 1961 Act is mandatory so as to sustain the order dated 29.12.2020, relevant provision of the 1961 Act is reproduced hereunder for the ready reference:-

“Section 70-A of the Punjab Cooperative Societies Act, 1961- Order for winding up, reconstruction, supersession of Committee etc. of Insured Co-operative Bank – Notwithstanding anything contained in this Act, in the case of an insured co-operative bank-

(1) an order for winding up or an order sanct