Hiriyur Taluk Veerashaiva Credit … vs The Reserve Bank Of India on 25 March, 2008

IN 'I'HE HIGH come'? OF KARNATAKA AT BA;{GAL§iéME~  "
DATED THIS THE 25TH DAV r3B*.MAI§§§t_i"'2%i::3."'  

BEFORE  ' 'T

THE. HON'BLE MR.  A' S__BQI5}%NAl'$Q&""' 

Hi£"x'i'YUR TALUK \?i§Ef€ASHAiW§'t CREDI1' '
CO--OPERA'I'IVE :3Qr;f:}.I«:Tsf LTD; '
MPJN r<0Ai3,_V   _ ,  

HIRIYUR 57:22 143', 
GH1TRADUR1s'r.,
REP. BY yrs GENERAL MANAGER.  RESPONDEN'I'S

(By M/S KASTURi ASSOCIATES, ADV3 FOR R1
Séri: G CEHANDRASHEKHARAIAH, ADV. FOR R2)

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THIS WRIT PE'I'I'I'ION IS FILED UNDER   _ 
1227 OF THE C'.ONSTI'1'U'i'ION OF INDIA. WITH Ex"-PRAYER.'I'Q: V

DECLARE THAT SEC.35(A) OF' THE; BANK_IN.G .;F5EGUi.ATIC)NS«
ACT AS UNC'.ONS'1'I'I'U'I'[CINAL AND VE.OLA.T!VE OF PE'I'ITE(}NER'S

RIGHTS UNDER AR'I'ICLES 14,19 '-AND  »_.F"
CONS'I'l'I'U'T'ION ore INDIA; Quasn "THE D;REcT1

'I'hi:'_~":  j!rf§fi§i3'.t'§,J'JJ'.lf!I"i'(';('L.if_['I',1"'ig 071 '.fai*'}1'c':a1'"ing, t}*is cl?-y, flee
C.'ou1't madge fi3C.Vfé)'}i'fi§Vi11g""._  " V

.....;+

W1 .1}. G 'A

. w11ic:E1vis..fi31jJ1.1g11eci ai'.A1111cxuI\: -A to the 1.'u':i=i'i:ic3»11.

. "E1316 1:u:t1't1'0ner 1133 also questimlccl the validity

 Scvcificfi 35A of t11t~: Banldng Regulation Act as

 .. u11_.co11'stitution£11 and violative of the pet1't1'o11er's right lllldfil'

""V_VA1tié«:1es 14-, 19 and 21 of the Constitution of India, that

.--iaspect of the mattm' is not pleased into selvice.

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2. 1 have heard Sri Ajay Govindmj, leasfiiedv  *

appearing for the petitioner, Sri 1€.'K.9istuIi"§  

colulsci appearing for 1we:91)oii£1eJQ:-iti "  N¢:ji;--1_:" 

G. Chia11d1as11cka1"aia11, ~v..Q0tIl;iSfii Vfoif '~SEt';.:O11d * L'

 AtiAfi1£§'v_o1_;ti-i1:it.,  Itqtiiies to be 11o1':iceci is that the
pfifiiifilielj/i'ii1'iy11i"'  Visaerashaiva C-redit Go--opcrative

Society LtciI',  ivbeitnxiéstllis Cotut in earlier Wltit Petition

  No;-..24iS80'i'o4 and 25178/04. The said Writ

  'i?§§'tiii4i:J_fa:§V.u*é1'af:(iisposed of by mtlerr dated 6.12.2004 Wllfilfiill

 C«()l,i1*'£i:~V' iiacl mliecl on an earlier order passed in

w.P.N¢.'279s4,Io4 dated 1,12,2oo4! By the said order, this

iflfl app1'op:riate for the pefitioncr to approach ih." Resryvr:

Bank of India itself with their grievance.

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5. In the "present petition, the  he 
petitioner is that the clirection dated 18.6  
Re-eelve Bank of India is a blaiiiczet 
affected the right. of the peiii_tic"rne1'  apmetlnt 

whii.1_ is due to them _from thefsecond Iespgiitiezitl Hiriyur

contelids that the alnoiiiit.-af*Rs;u;GG,m.{}}'"tlepesited b" we

     

petitioner]    which have been
clepositect    area and as such the
ban  Baiiit of India is in fact afiectzing
the  area in 1'l:'.CBiV'iI1g their amount
"{hf3_I.'fifOil'ti-,  the Reserve Bank of India is not
 '  ...... ..
 i'§--'i;teiA'iieepoiidente however contend that in View of

tlie  iespuncleiitj Bank not 1)e1'fOI'.I11il1{',' its banking
iI'1'111et:ieii1s in aeeoitlance with law, the first respondent was

A":.',1,",ed to .eeI.1e -l_e _1iJ,\::<:Le11 only to protect the interest. of the

6

pewsrn" "'31-"E Ei':'3.'iGi1i1'{S have been {'.€})G3l.."i".d 1.1 .--.. 39.16.
Bank. Such power has. been exercised by the fLT3t

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an

n3spo11de11t u_':1c1c1' the Bankillg Regulation   '
furt11¢::1' co11te11ded on behalf of: ~fl1.-3'   
illspccttion of the second 1"esp011c1E£31t/  

011 31.3.2006 whicll mveals    tlvie 

39.11,. co11i.i__I.-t:.e:. L be: 13IecaIi(§t1s'=a11d ha3__dct731io1atEtl

f'1i'u'1r:i' it IS t}"e'"af'*"-1% a$te::1pted is L;e'Vj].i:-9;i.fie.. 0.-.1 bc11..!f -f

the first IBS1)Ol1§1&1fi. i'h.&'f.'"'f.'!1::('i'."   'b:":*"1g in '£1.16
interest of  as the depositors
cannot' I); V  .   séniol' c;m.111sel on behalf
of l'l1é;vv'f11"§zt 1  refers to pamgzraph 6 of the
 the details of the reasolas
  i)'VElf3».1 1"fl1{3 fimt 1'ESpO11d6l1t before isstling
 fiuijtéli   fiat". as it way, what IEql1i'1E'.S to be

 1"zr..rtiCt-.e;l 'i»:.=. 'Vi;!.Vé'21;V..;11-3 pctitL011e3.r 1121121-- is a. cnaclit co-operative

 alt: hi vnécd of the amount. depositccl by them with the scc:o11c'1
  3'3s_1io11de11t, since the 33111:: is to be disbursed to the falmcls
__éu1d the ban ilnposecl by the fast. respo11de11t on the secrond

respu-11c1e11t.f Bank has aifcctccl their right.

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7. In this rncganzl, though cletafled 1taso1_1$:---- ~

given by the fi.I'St 1espo11c1e=:11t, the _fu»1'thc1'  A.1'ht=._ 

objecrtion s.tatc1ne11t.is that the i11sj3ccfii)13'TV01iTT'3 1';."-§.'2(')i):?3~..h%i3:

not indicated any i1I1pr0ve11jc'r1't.g. On this T'é_1s13§:ct...VQt71 the --. L

matter, the learned cougusel fo:f__fhcV_pe:t§itioiiér«§fr§:111;i? c0I1te11c1

 
 

hag; c:c:o11tB11c1ccl that

'€116 "1-ape':t*011 G11 '3'..3.'23""'3 ha-3 not s..a'.==:11 ...z.y
, , .. __ 1.1.. _

l';[l11Jl'()VEI]1i3j14_1i2,3...:v    :1
3.7.2006   V::i'1V(§:1(iv':fDVV'CDC)I1Si'itl1tE the bcz-and of
1ua11a;g!:,;g:m1;:hf'  Itfirhlxdcntf Bank aucl as' such
tlge sefécagxéi _  has 11661] condtlcting its

b11s§11es_s ahc1..f11eIéfoiE at this ju11cture, it is Ilecessaly that

h  A thvézfi Shotiid be a' Vféifiew by the fimt Iespondent. _t.o ccmsider

  the 1J1*¢Sc;1i.jJas§i.{ion as to whethe1* there is any i1I1]_J1'()VE]11t':]1t

 1\§$gi'i:'_'d, I am of the: View that this aspect of the mattcl' cannot

'be clecided in a Writ Pet1't1'o11 and at best this could be

resolved only if the petitioner] society is permittecl to make a

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comp1'c11c11sive 1*eprese11tatio11 to the tint.  ~
illdicating the subsequc-11!: clcvclopments " t£_'j3¢;e11: 
place with mgagnd to the manhgeméaxti 'bf:  
respondent] bank and seek 1'e$t1't'=:'-wj of     
the c11a11ged ciltttlmstahctes.   is made

by .46 p::tit1'_r11r.:1'., it 'x'-vct,iL1_1:i?_  3 on the first

 

"""" """"e1at to la;-_k i11tx3,t1.1s:_ 'sa....=fis =s,=.11.c1"mi':i5 'ta 9. (.':{."}lC1lESif.'.'l.
' ,_  'Z: ",J,,,,,';:A,h;'.' i;~....;__._____ ._.: M. 5.... ,'.,...
3, a,11.:21 assess 'lg fut: pwac 1': as 'rfuutiu 1 m

which tlttc  Vi$':fl1t:j.Cfi011il1g. Eve11 though it.
is stahécl  is; VV1;.V~_v=.'$11ed by Reserve Bank of
India i:§'1t:spcmtlent. and as such the
1tp1';c;'.3-t:1;tat'i£J:1:v(;f'th1ieAijetfittonel' is not appmpriatc, what. is to
 * 1)tii";.I_:totit:.ad" if, thtittmthc first. 1t:spo11dcnt could pass suc:l1
   "t'£tIf"h-:Ijt.'gViBW the same suo-111ut.o and tllerefons the

:;;}1BsI31;:t..;Lg1-11 .0 J: 1.;--.;.c. hy t1_r: pcti .'nne.1* woulcl only 11311)

1.. _ 1:1; - _... --.1...,- ¢,. ...... ....- .-... '
in pm us 1% 1 K," ,-5 as t_.'1.-2 situation

8. 111 the uesult the following:

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ORDER

The pctit1’o11er is at ‘ f.0 «V
reprcselltation in the Tsflatéd. u’*.;i3.’2’.($VSVV

a peliiod of four _fmn 1″ f:1_1t=:c_IV£aii§3_ ma:-sifit of * L

cgpy of t”11__1’s o1t’1e:r.___

at

(‘E1 11 ” ‘ -:4’-” V “-‘. W ‘
\.l.l..l aucu :..*32Ea:-;11ta-.:.:u,11 igsggg -J..-£:e1’e.’:(1, ..1e ..1_.t.

‘ _ -11 __

respm1dentf”Ra’:~at:1ve”B2911: if Shau C

aigd «of€t_11e _:-1-ajne’ 1=;lifi;C3(.’O1′(-itillcii with law
“a pb§:I*.ic) c-I Viillflllflls from the date of

. Ifctaipt bf 3’t1c}1..1jc:13I.csentati0n.

.1′

5 ‘ ‘J!jt11 Vt:i1r:a ‘above obsmvatiolms and directiolls, the

Akc/bms

” pt:V’tit1’.t)1Ei”LSt2fi111ts dispfiéml oi No Cutler as to costs.

sal-

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