SOUTH CANARA DISTRICT CO-OPERATIVE BANK LTD, REPRESENTED BY ITS MANAGING DIRECTOR Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Petitioner herein is impugning the orders of respondents 1 and 2, namely the Secretary, Department of Cooperative Societies, State of Karnataka and Registrar of Cooperative Societies, Bengaluru, which are at Annexures - B, D and F.

(2.) Brief facts leading to this writ petition are as under:

(3.) According to the petitioner, for the financial year 2009-2010 the rate of interest that was fixed for recovery of loan amount was 1% and in terms of the order of sanction of short term credit limit to financial banks, the petitioner - Bank was required to deposit the interest received thereon with NABARD on or before 31st March of each financial year or at the earliest as and when the entire loan is repaid with interest. Accordingly, it is stated that as on 31.3.2010 the petitioner - Bank has credited a sum of Rs.12,29,70,774/- to NABARD account, which in turn will be reimbursed to it by the Apex Bank.