HUKKERI TALUKA PRIMARY CO OPERATIVE AGRICULTURE AND RURAL DEVELOPMENTBANK LIMITED HUKKERI Vs. KARNATAKA STATE CO OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANKLIMITED BANGALORE

JUDGEMENT

(1.) THE PETITIONER HAS QUESTIONED THE VALIDITY AND CORRECTNESS OF THE LETTER DATED 19-10-1992-ANNEXURE-E ADDRESSED TO THE PETITIONER-BANK BY THE SECRETARY OF THE FIRST RESPONDENT-BANK.

(2.) SRI JAYAKUMAR S.PATIL, LEARNED COUNSEL FOR THE PETITIONER, SUBMITTED THAT THEPETITIONER-BANK HAS MAINTAINED AN EXCELLENT RECORD. ITS RECOVERY OF LOANS WAS 63.53% AND HAS CREDITED MORE THAN 50% OF THE AMOUNT SO RECOVERED TO THE FIRST RESPONDENT-BANK. HE FURTHER SUBMITTED THAT THE PETITIONER-BANK IS ADJUDGED AS THE BEST BANK IN ITS PERFORMANCE. HE ALSO SUBMITTED THAT THE ENTIRE AMOUNT RECOVERED COULD NOT BE CREDITED BECAUSE SUBSIDY AND INTEREST DIFFERENCE AVAILABLE WAS NOT FINALISED BEFORE 15-4-1992. BE THAT AS IT MAY, WE ARE CONCERNED WITH THE INTERPRETATION OF SECTION 20(2)(B)(IV) OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959 (FOR SHORT 'THE ACT') IN ORDER TO DECIDE WHETHER THE PETITIONER HAS RIGHT TO VOTE AT A MEETING OF THE CO-OPERATIVE SOCIETY.

(3.) SRI P. VISWANATHA SHETTY, LEARNED COUNSEL FOR RESPONDENT NO. 1, SUBMITTED THATLANGUAGE OF THE AFORESAID SECTION IS CLEAR THAT THE PETITIONER HAS TO COMPLY WITH THE TWO REQUIREMENTS, NAMELY: (1) THE RECOVERY MUST HAVE BEEN NOT LESS THAN 50% AND (2) THE ENTIRE AMOUNT RECOVERED SHOULD HAVE BEEN CREDITED TO THE FINANCING INSTITUTION. EVEN IF ONE OF THE CONDITIONS IS NOT SATIFIED SUCH MEMBER SHALL NOT BE ELIGIBLE TO PARTICIPATE IN THE ELECTION.