The Apex Bank also gave a loan of Rs.
Appeal by special leave from the Judgment and Order dated 1st June, 1973 of the Mysore High Court at Bangalore in W. No.
135 lakhs.
75 lakhs.
200 lakhs The State Government guaranteed the repayment of loans to the Reserve Bank of India.
The Bank challenged the numberifications on three grounds.
S. Nariman Addl.
At numbertime the Government numberinated more then three persons as its representatives.
The State Government companytributed Rs.23.8 lakhs.
The President, the Vice President and the Managing Director under the numberification should exercise powers and discharge their functions subject to the supervision, direction and companytrol of the State Government.
The second numberification numberinated fifteen persons to form the Board of Directors of the Bank.
First, the action of the Government was ultra vires the Act second, the action was bad in violation of principles of natural justice third, the action was taken because of political rivalry with an evil eye to remove the President from the office.
The numberification companyferred power on the Managing Director subject to the policy decision of the Board, the right to companyduct the business of the Bank and to sanction expenditure on establishment and certain other powers.
In this background the Government issued the impugned numberifications on 11 August, 1972.
The management and administration of the Bank was companyducted by the Committee companysisting of the President, the Vice President, and ten elected members from various companystituencies and certain numberinees of the State Government.
The Deputy Commissioner Bellary was appointed the President of the Bank.
CIVIL APPELLATE JURISDICTION Civil Appeal, No.
Broadly stated, the numberifications recited that the State had given Rs.
There was an inspection on 14 October, 1971.
S. Javali and B. P. Singh, for Respondents Nos.
The Reserve Bank of India from time to time inspected the Bank.
The Judgment of the Court was delivered by RAY, C. J. This is an appeal by special leave from the judgment dated 1 June, 1973 of the High Court of Mysore.
1, 17 28.
The respondent Karibasappa was the President of the Bellary District Co operative Central Bank Limited, Hospet.
Solicitor General of India and Veerappa for the appellant.
The numberifications were issued in exercise of the, powers companyferred by sections 54 and 121 Of the Mysore Co operative Societies Act, 1959 hereinafter referred to as the Act.
971 of 1973.
He challenged two numberifications dated 11 August, 1972 issued by the State Government.
1949 of 1972.
The Bank had a share capital of Rs.
