IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 8TH OCTOBER 2009 / 16TH ASWINA 1931 WP(C).No. 26774 of 2009(N) -------------------------- PETITIONER(S): --------------- THE TIRUR CO-OPERATIVE RURAL BANK LTD., NO. 664, TIRUR, MALAPPURAM , REP BY ITS SECRETARY. BY ADV. SRI.K.I.ABDUL RASHEED SRI.K.A.SHAMSUDEEN SMT.SEEMA.E.GEORGE SRI.C.MOIDEEN KUTTY SMT.V.H.JASMINE RESPONDENT(S): --------------- 1. UNION OF INDIA REP. BY THE SECRETARY, REVENUE DEPT. NEW DELHI. 2. STATE OF KERALA, REP. BY SECRETARY TO GOVT. CO-OPERATION DEPT. THIRUVANANTHAPURAM. 3. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, (GEN.) MALAPPURAM. 4. THE RESERVE BANK OF INDIA, URBAN BANKS DEPT. BAKERY JUNCTION, THIRUVANANTHAPURAM, REP. BY ITS GENERAL MANAGER. BY GOVERNMENT PLEADER MR. K.S. MOHAMMED KSAHIM ADV. SRI.CYRIAC KURIAN, CGSC FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 26774 of 2009(N) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 - TRUE COPY OF THE ORDER DATED 27.6.2002 ISSUED BY THE JOINT REGISTRAR. EXT.P2 - TRUE COPY OF THE RESOLUTION OF THE GENERAL BODY. EXT.P3 - TRUE COPY OF THE REGISTRATION CERTIFICATE. EXT.P4 - TRUE RELEVANT PAGES OF THE BYE-LAW CONTAINING CLAUSE 4 AND CLAUSE 24. EXT.P5 - TRUE COPY OF THE REPLY DATED 21.09.2002. EXT.P6 - TRUE COPY OF THE REPLY DATED 7.2.2003. EXT.P7 - TRUE COPY OF THE JUDGMENT DATED 10.2.2005 IN O.P. NO. 12723/2003. EXT.P8 - TRUE COPY OF THE ORDER DATED 20.8.2009 ALONG WITH ITS COVERING LETTER. EXT.P9 - TRUE COPY OF THE REPRESENTATION DATED 9.9.2009. // TRUE COPY // PA TO JUDGE rhs S. SIRI JAGAN, J ............................................... W.P(C) No. 26774 of 2009 ................................................. Dated this the 8th day of October, 2009 J U D G M E N T The petitioner is a primary agricultural credit society coming within the definition of Section 2(oa) of Kerala Co- operative Societies Act. According to the petitioner, the main objects of the society are to grant loans for agricultural purposes for purchasing agricultural implements, seeds, manures etc., to act as an agency for sale of agricultural products including copra, pepper and cashew, as also to promote allied agricultural activities including marketing of crops. The bye-laws of the society provides for grant of loans for this purpose. Under Section 3 of the Banking Regulation Act, a primary agricultural credit society is exempted from the purview of the said Act. However, the 4th respondent, Reserve Bank of India initiated proceedings directing the petitioner to comply with the provisions of the Banking Regulation Act. This court, by Ext.P7 judgment, directed the 4th respondent to consider Ext.P6 objection filed by the petitioner in this regard. Pursuant to W.P(C) No. 26774 of 2009 -2- Ext.P7, the 4th respondent considered the objections of the petitioner and passed an order holding that the society's request to exempt the society from the provisions of the Banking Regulation Act cannot be accepted. The 4th respondent thereupon directed the petitioner to delete the word 'Bank' from its name. The petitioner submitted a further representation dated Ext.P9. In the above circumstances, the petitioner seeks the following reliefs: “i) issue a writ of certiorari quashing Ext.P8 order issued by the 4th respondent. ii) grant a declaration that the provisions of the Banking Regulations Act is not applicable to the petitioner as same comes within the definition of Primary Agricultural Credit Society as defined under 56 (cciv) of the Banking Regulations Act. iii) issue a writ of mandamus or any other order restraining the Reserve Bank of India from interfering with the functioning of petitioner bank. iv) issue a writ of mandamus directing the 4th respondent to consider and pass orders on Ext.P9 forthwith.” 2. The petitioner submits that now the petitioner is in a position to prove that the petitioner is a primary agricultural credit society by providing appropriate material before the 4th respondent and therefore the 4th respondent may be directed to W.P(C) No. 26774 of 2009 -3- reconsider the matter in the light of the materials to be produced by the society. The 4th respondent appears through counsel and opposes the prayers. However, on a question put by the court, the counsel would submit that, if this court so directs, they are prepared to consider Ext.P9 in accordance with law. In the above circumstances, this writ petition is disposed of with a direction to the 4th respondent to consider Ext.P9 in accordance with law, after affording an opportunity of being heard to the petitioner, including opportunity to produce evidence to prove their contentions, as expeditiously as possible, at any rate, within two months from the date of receipt of a copy of this judgment. In the meanwhile, the 4th respondent shall consider permitting the petitioner to continue the statusquo. S. SIRI JAGAN, JUDGE rhs