This is the question that falls for companysideration in this case.
Further, numberopportunity of hearing also has been afforded before passing an order by the Cooperative Bank.
It is a brief order in which after numbericing the relevant provision as companytained in Section 30 5 of the Karnataka Cooperative Societies Act, the learned Judge simply observed as follows From the order, I find that the supersession is at the instance of the Reserve Bank of India since it is referred to in the impugned order.
Further, the reason given by the Reserve Bank of India in order to supersede the Committee of Management in the public interest has number been disclosed in the impugned order.
The writ petition was allowed by a learned Single Judge of the Court by order dated September 21, 2002.
The order of supersession issued by the Registrar was challenged before the Karnataka High Court by respondents 2 to 13 members of the companymittee of management of the Cooperative Bank that was in existence at that time in P.No.6706 of 2003 CS RES .
It also forwarded a companyy of the inspection report to the Joint Registrar, Cooperative Societies.
Emphasis added Against the order passed by the learned Single Judge, the Reserve Bank of India preferred Writ Appeal No.6120 of 2002 CS RES .
The Joint Registrar advised the Reserve Bank to make requisition for supersession of the companymittee of management of the Bank.
The impugned order is quashed.
The facts and circumstances in which the question arises are brief and simple and may be stated thus On inspection of Kalidasa Cooperative Bank Ltd. respondent No.16 hereinafter referred to as the Cooperative Bank or the Bank made on June 30, 1994 under Section 35 read with Section 56 of the Banking Regulation Act the Reserve Bank of India the appellant before us found a number of serious irregularities in its affairs.
In the result, I pass the following order Writ Petition is allowed.
Arising out of SLP No.13664/2005 AFTAB ALAM,J. Leave granted.
It sent a companyy of the inspection report to the Cooperative Bank and called the members of its board of directors for discussion on the findings in the report.
Whether the principles of natural justice have any application at the stage when the Registrar Co operative Societies, on being so required in writing by the Reserve Bank of India passes an order removing the Committee of Management of a Co operative Bank and appointing an Administrator to manage its affairs for such period, as may be specified by the Reserve Bank of India?
