JANATA SAHAKARI BANK LIMITED Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) RULE. Rule heard forthwith by consent of parties. Dr. Naik appears for the petitioner - petitioner No. 1 being a Co-operative Bank and petitioner No. 2 being its Chairman - while Dr. Chandrachud appears for Reserve Bank of India, respondent No. 3 and Shri Kerkar, Asstt. Government Pleader appears for respondent Nos. 1 and 2.

(2.) BY a Circular dated 3rd August, 1992 issued by the Reserve Bank of India addressed to the Registrars of Co-operative Societies of all States and Union Territories in India, the Reserve Bank of India communicated that in so far as normal donations by Co-operative Banks from out of their net profits are concerned, such donations may not exceed one per cent of the published profits of the previous years and such normal donations together with those that may be made to National Funds and other Funds recognised or sponsored by the State of Central Government may not exceed two percent of the published profits of the previous year. The said Circular also communicated that individual donations from out of the profits by such Co-operative Banks may not exceed Rs. 10,000/ -. In pursuance of the said circular, the Commissioner for Co-operation and Registrar, Co-operative Societies, Maharashtra State issued a Circular dated 27th August, 1992 in turn addressed to all the Co-operative Banks. The said Circular of the Reserve Bank of India is at Ex. F to the petition and the Circular of the Registrar, Co-operative Societies is at Ex. G to the petition.

(3.) PETITIONER No. 1, a Co-operative Bank, registered under the Co-operative Societies Act, feeling aggrieved by the said Circulars, has preferred this writ petition.