Judgment · High Court

Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a writ, order or direction more particularly in the nature of writ of mandamus by declaring the action of the 1st respondent herein in issuing the E.P.No.227/04-05 dt.19.7.2005, is void, ilega, improper and arbitrary pass other order or orders. Counsel for the Petitioner:MR.M.VENKAT DIVAKAR Counsel for the Respondent No.: GP FOR COOPERATION The Court made the following : ORDER This writ petition filed seeking a declaration E.P.No.227/04-05, dated 19.7.2005 issued by the 1st respondent under Section 71 (1) of the Andhra Pradesh Cooperative Societies Act, 1964 ( for short ‘the Act’) for recovery of the amounts due from the petitioner as arbitrary and illegal. This Court while directing Rule Nisi, by order dated

12.08.2005 granted interim stay of all further proceedings E.P.No.227/04-05, dated 19.7.2005 having regard to the law laid down by this Court that the Tribunal constituted under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short, ‘the Act’) alone has jurisdiction to deal with the debts due to the Co- operative Banks . However, the said view was not accepted by the Supreme Court and in GREATER BOMBAY CO.OP. BANK LTD. v. UNITED YARN TEX (P) LTD. [1] it was held that the Co-operative Banks established under the A.P. Co-operative Societies Act, 1964 do not fall within the meaning of Banking Company as defined in Section 5 (c) of the Banking Regulation Act, 1949 and therefore the provisions of the Act are not applicable to the recovery of dues by the Co-operative Banks. In view of the above said decision of the Supreme Court, the contention of the petitioner that the impugned certificate issued by the first respondent is without jurisdiction, cannot be accepted. So far as merits are concerned, as against the impugned certificate issued under Section 71 (1) of the Act, an efficacious remedy of appeal is available to the petitioner before the Andhra Pradesh Co-operative Tribunal under Section 76 of the Act. Hence, the petitioner ought to have availed the said alternative remedy. In the circumstances, the writ petition is liable to be dismissed and the same is accordingly dismissed leaving it open to work out the remedy of appeal under Section 76 of the Andhra Pradedsh Co-operative Societies Act, 1964. No costs. ___________ 05-12-2008 [1] (2007) 6 SCC 236