IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOMAS P.JOSEPH MONDAY, THE 28TH FEBRUARY 2011 / 9TH PHALGUNA 1932 Crl.MC.No. 5020 of 2010(D) -------------------------------------- [CC.NO.131/2002 OF CHIEF JUDICIAL MAGISTRATE COURT, MANJERI] .................... PETITIONERS: --------------------- 1. THE MALAPPURAM CO-OPERATIVE URBAN BANK (NOW THE NAME CHANGED AS MALAPPURAM CO-OPERATIVE URBAN SOCIETY LTD.)(UN-LICENCED) LIMITED NO.636, REPRESENTED BY ITS CHAIRMAN, KOTTAPPADI, MALAPPURAM DISTRICT. 2. THE GENERAL MANAGER, MALAPPURAM CO-OPERATIVE URBAN BANK (UN-LICENCED) LIMTED, KOTTAPPADI, MALAPPURAM DISTRICT. 3. N.ABDUL RAZAK, NADUTHODI HOUSE, VALIYANGADI, DOWN HILL.P.O., MALAPPURAM DISTRICT. 4. L.MADHAVAN, "PRASAD BHAVAN", THAMARAKKUZHI, UPHILL.P.O., MALAPPURAM DISTRICT. 5. VEEKSHANAM MUHAMMED, S/O.ABDULLAKUTTY, KUNNUMMAL, MALAPPURAM DISTRICT. 6. K.ABOOBACKER, KODIYADAN HOUSE, DOWN HILL P.O., MALAPPURAM DISTRICT. 7. M.VIJAYAKUMAR, "SREEVALSAM", KAVUNGAL, MALAPPURAM DISTRICT. 8. P.HAMZA, S/O.ABOOBACKER HAJI, PERUNGADAKKAD HOUSE, THAMARAKKUZHI, MALAPPURAM DISTRICT. 9. T.RAYINKUTTY, S/O.ALAVIKUTTY, THOTTAPPANI HOUSE, MUTTIPPADI, MELMURI, MALAPPURAM DISTRICT. CRL.M.C. NO.5020/2010-D: 10. P.VENUGOPAL, PARAYIL HOUSE, KALAMATHATTA, P.O.DOWN HILL, MALAPPURAM DISTRICT. 11. P.M.MUHAMMEDALI, S/O.MOIDEENKUTTY HAJI, PULLIYIL MADASSERI HOUSE, MELMURI, MALAPPURAM DISTRICT. 12. K.JAYAKRISHNAN, KARUMATHIL HOUSE, THAMARAKKUZHI, MALAPPURAM DISTRICT. 13. N.PADMINI, NAMBOLAN HOUSE, THAMARAKKUZHI, MALAPPURAM DISTRICT. 14. P.P.PATHUTTY, NADUTHODI HOUSE, VALIYANGADI, DOWN HILL, MALAPPURAM DISTRICT. 15. N.RAJENDRAN, ARANGODAN HOUSE, VALIYANGADI, DOWN HILL, MALAPPURAM DISTRICT. BY ADV. SRI.BABU S. NAIR. RESPONDENTS/STATE & COMPLAINANT: ------------------------------------------------------------ 1. THE STATE OF KERALA, REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM, KOCHI-31. 2. RESERVE BANK OF INDIA, REPRESENTED BY ITS ASSISTANT GENERAL MANAGER, (URBAN BANKS DEPARTMENT), REGIONAL OFFICE, THIRUVANANTHAPURAM. R1 BY PUBLIC PROSECUTOR SMT. M.K. PUSHPALATHA, R2 BY ADV. SRI.VIVEK VARGHESE P.J. THIS CRIMINAL MISC. CASE HAVING COME UP FOR ADMISSION ON 28/02/2011, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: prv. THOMAS P. JOSEPH, J. -------------------------------------- Crl.M.C. No.5020 of 2010 -------------------------------------- Dated this the 28th day of February, 2011. ORDER This petition is filed by the petitioners who are accused in C.C.No.131 of 2002 of the court of learned Chief Judicial Magistrate, Manjeri for offences punishable under Sections 7, 22, 46 and 49A of the Banking Regulation Act (for short, “the Act”). Petitioner No.1 is a co-operative society registered under Section 8 of the Kerala Co-operative Societies Act (for short, “the Societies Act”). Case is that though not authorised in that behalf by respondent No.2, the Reserve Bank of India petitioner No.1 used the word ' bank' in its name and thereby committed offences punishable under Sections 7 and 22 of the Act. It is further alleged that petitioner No.1, without authority carried banking business and committed offence punishable under Section 46 of the said Act while by receiving deposits from the public offence punishable under Section 49A of the Act is committed. Petitioner No.2 is the Secretary and petitioner Nos.3 to 15 are members of the Director Board of petitioner No.1. It is contended that petitioner No.1 did the said acts being a society registered under the Societies Act and that when the alleged violation of the provision of the Act came to the notice of petitioners, the Director Board of petitioner No.1 passed a resolution on 29.05.2007 whereby the word 'bank' was removed from its name and instead the word 'society' was incorporated. As per resolution dated 28.03.2008 petitioner has, with effect from the day withdrawn the cheque facility given to Crl.MC No.5020/2010 2 the depositors. Petitioner No.1 is not receiving any deposit from the public other than members of the society. The above resolutions and step taken were intimated to respondent No.2 as per Annexure-C, letter, it is contended. Learned counsel has requested that proceedings against petitioners may be quashed in the light of the decision of the Division Bench of this Court in Cherukode Co-operative Rural Bank Ltd. v. Parur Service Co- operative Bank (2006 (3) KLT 38) followed by Annexures-E and F, order/ judgment dated September 3, 2008 and January 16, 2009 in Crl.M.C.No.1824 of 2006 and W.P.(C) No.17614 of 2006 respectively. I have heard learned Senior Advocate appearing for respondent No.2 and the learned Public Prosecutor. 2. It is seen from the decision of the Division Bench and Annexures-E and F, order/judgment that in similar circumstances when such societies changed its name deleting the word 'bank' and stopped the banking facility as above stated this Court quashed proceeding against those societies and its Director Board members. There is no reason why the same principle should not be applied to the present case. Having regard to the facts and circumstances of the case and the decisions referred supra I am inclined to allow the prayer of petitioners. Crl.MC No.5020/2010 3 Resultantly this petition is allowed. Proceedings against petitioners in C.C.No. 131 of 2002 of the court of learned Chief Judicial Magistrate, Manjeri are quashed. It is made clear that this order will not stand in the way of respondent No.2 filing fresh complaint against petitioners in case any further violation of the provisions of the Act is detected. THOMAS P.JOSEPH, Judge. cks