URBAN CO OPERATIVE BANK Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE Administrator appointed for the Urban Co -operative Bank Limited, a society managed under the Orissa Co -operative Societies Act, has filed this appeal challenging the decision of the learned Single Judge holding that the Administrator appointed under the scheme of the Orissa Co -operative Societies Act has no right to admit new members. The learned Judge in support of his conclusion relied on a decision of the Supreme Court in Jt. Registrar of Co -operative Societies, Kerala v. T. A. Kuttappan : AIR 2000 SC 2378. We may incidentally notice that this position was also covered by an earlier decision of this Court in Rahas Bihari Das and ors v. State of Orissa and ors. : AIR 1995 Orissa 23. The learned Single Judge has held that the Administrator not having the power to admit new members could not admit such members and disburse loans to them

(2.) THE argument on behalf of the Administrator is that surplus funds available remained idle, if they are allowed to remain idle that will prejudice the Bank and loans had to be given to earn profit, and for that purpose new members had to be admitted. This submission was rejected by the learned Single Judge in view of the settled legal position. It is being aggrieved by the decision of the learned Single Judge holding that the Administrator could not admit new members and disburse loans to them that the Administrator has come up with this appeal.

(3.) WE have considerable difficulty in accepting the argument of learned counsel for the appellant that a co -operative bank is not a co -operative society coming within the purview of the Orissa Co -operative Societies Act. A co -operative bank is also clearly governed by the Act. It is also a co -operative institution. Once it is found that it is governed by the Orissa Co -operative Societies Act, there is no escape from following the ratio of the decision of the Supreme Court in Jt. Registrar of Co -operative Societies, Kerala v. T. A. Kuttappan ; AIR 200o SC 2378 (supra). We are also not able to accept the argument of learned counsel for the appellant that the decision of the Supreme Court must be held to be inapplicable to a co -operative bank governed by the Orissa Co -operative Societies Act. As found by the Supreme Court and by this Court earlier, and by various other High Courts, the Administrator is to be in charge of the affairs of the society only to enable him to carry on the day to day administration of the society. He is not entitled to take any policy decision. He has also no right to admit new members. In our view, after the, decision of the Supreme Court referred to above, it is not open to us to go behind that decision on the basis of an argument that a co - operative bank is different from a co -operative society. We are, therefore, not in a position to accept the argument of the learned counsel for the appellant in that behalf.