M RAMACHANDRAM MEMBER AND EX CHAIRMAN OF VASUNDARA CO OPERATIVE URBAN BANK LIMITED SECUNDERABAD Vs. JOINT REGISTRAR DISTRICT CO OPERATIVE OFFICER RANGA REDDY DISTRICT

JUDGEMENT

(1.) The petitioner is the member and Ex-Chairman of Vasundara Co-operative Urban Bank Limited, Secunderabad (hereinafter referred to as 'the Urban Bank'). It held a licence under the Banking Regulation Act, 1949 issued by the Reserve Bank of India and it is registered under the Andhra Pradesh Co-operative Societies Act (for short 'the Act')

(2.) The Reserve Bank of India, 3rd respondent, issued a show cause notice dated 29-11 -2002 to the petitioner directing it to show cause as to why its licence should not be cancelled. The petitioner submitted explanation and thereafter some correspondence ensued. Ultimately, through its order dated 1 -9-2003, the 3rd respondent cancelled the licence of the Urban Bank. The petitioner filed Writ Petition No. 19254 of 2003 against the said cancellation order. The said Writ Petition was disposed of through orders dated 24-9-2003 leaving it open to the petitioner to avail the remedy of appeal provided for under Section 22 of the Banking Regulation Act. The petitioner preferred such appeal before the 5th respondent together with an application for grant of interim suspension. The 5th respondent made an endorsement dated 8-10-2003 to effect that there is no power in the them to pass interim orders.

(3.) In view of the cancellation of the licence by the 3rd respondent and further instructions issued by it under Sec. 115-B of the Act, the 1 st respondent appointed the 4th respondent as Special Officer of the Urban Bank in the place of the management. Subsequently, the 1st respondent passed orders dated 27-9-2003 directing winding up of the Urban Bank and appointing the 2nd respondent as a liquidator. The petitioner challenges the same.