VANDANA VARMA Vs. STATE OF U.P.

JUDGEMENT

(1.) A Division Bench, finding itself unable to agree with the law laid down by an earlier Division Bench in Kamil Kidwai vs. State of U.P. and others, 1992 (10) LCD 263 : 2014 (9) ADJ 545, on the interpretation of Section 38(1) of U.P. Co-operative Societies Act, 1965 (hereinafter referred to as 'U.P. Act, 1965'), in respect of power of Registrar, with regard to sanction of resolution of Committee of Management of a Co-operative Society, passed in exercise of power under Rule 454 of U.P. Co-operative Societies Rules, 1968 (hereinafter referred to as 'Rules, 1968') and a follow up decision in Writ Petition No.45314 of 2014 (Smt. Vandana Varma and 2 others vs. State of U.P. and 6 others) decided on 29.8.2014, made reference to Larger Bench for answering the following question:- "Whether, the division benches in Kamil Kidwai Vs. State of U.P., 1992 (10) Lucknow Civil Decisions, 263, followed in Writ Petition No. 45314 of 2014, in so far as the exercise of power by a committee of management of a cooperative society, under rule 454, is subject to grant of sanction by Registrar under section 38(1) of the Act lays down the correct law? "

(2.) Before adverting to the aforesaid question we find it appropriate to have a bird eye view of a few relevant facts, giving rise to this controversy.

(3.) District Co-operative Bank Limited, Muzaffarnagar (hereinafter referred to as 'D.C.B.') is a Central Level Co-operative Society registered under U.P. Act, 1965. It is engaged in the business of banking and has received a licence for this purpose from Reserve Bank of India under Banking Regulations Act, 1949 (hereinafter referred to as 'B.R. Act, 1949'). D.C.B. has individual members as also many Primary Agricultural Credit Societies as members.