Order of Registrar of Co-operative Societies to wind up affairs of Bank is an executive order, that neither contemplates any show-cause notice or personal hearing

Order of Registrar of Co-operative Societies to wind up affairs of Bank is an executive order, that neither contemplates any show-cause notice or personal hearing

Petitioners have challenged the order passed by the Reserve Bank of India cancelling the licence of the CKP Bank and order of Commissioner for Cooperation and Registrar of Co-operative Societies thereby appointing a Liquidator of the said CKP Bank. Petitioners have also prayed for a writ of mandamus to issue directions to the Reserve Bank of India to prepare a scheme of reconstruction or amalgamation of CKP Bank with other Co-operative Bank/Banks having a sound financial position in the interest of justice under the supervision and control of the Reserve Bank of India, State of Maharashtra and Union of India. In the alternate prayer clause (c), the petitioners have prayed for a writ of mandamus against the Reserve Bank of India and Union of India to provide sufficient financial aid to the said CKP Bank for its revival and to said CKP Bank to be run under the direct supervision and control of the Reserve Bank of India, State of Maharashtra and Union of India with new Management/Board of Directors as this Court may deem fit.

Registrar of Co-operative Societies while passing an order of winding up of the said CKP Bank complied with the mandatory directions issued by the Reserve Bank of India. Order of the Registrar of Co-operative Societies to wind up affairs of the Bank is an executive order, Hence, the Registrar of Co-operative Societies has no discretion to either issue a show-cause notice or to give any hearing to the said CKP Bank or to any of the depositors.


Appearing counsel/s : Mr. Bhavesh Parmar a/w Mr. Rahul Gaikwad, Mr. Rajesh Sahani, Ms.Gauri Govilkar with Ms. Ritika Bharadia , Mr. Venkatesh Dhond, Senior Counsel a/w Mr. Prasad Shenoy, Ms. Aditi Phatak and P. Zaiwala i/by M/s. Udwadia and Co. ,Mr.D.V. Sawant a/w Ms.Priyanka P. Kulkarni and Mr.Abhishek Sawant i/by M/s. P. S. Chambers ,Mr. M. M. Chunawala i/by Mr. A. A. Ansari,Ms. Jyoti Chavan, Mr. Yuvraj D. Patil, Mr. Rajan S. Pawar