RAJ KISHORE PRASAD Vs. STATE OF BIHAR

JUDGEMENT

(1.) HEARD learned counsel for the petitioner, learned counsel for the State, learned counsel for the Bihar State Co -operative Bank, learned counsel for the R.B.I and learned counsel for the respondent no. 9.

(2.) ON an earlier occasion this Court had issued certain directions in the matter which the State and other authorities, chose to challenge the same in the Letters Patent. The matter ultimately was taken to the Apex Court and the Apex Court directed that the order passed by the High Court being in the interest of all concerned should be observed subject to the modification and the direction given by the Supreme Court in its order dated 25.11.2004. The Apex Court also observed that looking to the exigency, the Judge in the matter can issue interim directions, instead of issuing any direction, the Apex Court remitted the matter to this Court with the observation that this petition may be disposed of within two weeks.

(3.) THE petitioners are Chairman/Director of Patliputra Central Co -operative Bank Limited, Patna. For the purposes of clearance of the cheques etc. they are affiliated with the respondent no. 4. In the system and as the R.B.I has explained it that the cheques can be clearned in clearing house if these are presented by its members who in his turn can issue sub -membership. It apprears that Managing Director, Bihar State Co -operative Bank Limited (Apex Bank) in his capacity as the Managing Director issued an order on 5.7.2004. It is undisputed before me that the said order was passed by him without affording any opportunity of hearing to Patliputra Central Co -operative Bank Limited. After recording certain reasons the said Managing Director directed de -affiliation of Patliputra Central Co -operative Bank Limited from the Apex Bank. He also ordered supersession of voting rights with immediate effect as consequence to it Patna Central Co -operative Bank Limited ceased to be a member of the Apex Bank and then stood divested of all voting rights in the affairs relating to the Apex Bank. He also observed that a notice be published in the newspapers regarding deaffiliation for the knowledge of the common masses so that the existing and prospective customers may Know that the Apex Bank shall in future have no role to play with regard to the affairs of PCCB Ltd. He also ordered that the matter be recommended to the Registrar Co -operative Society for supersession of the existing board of the PCCB Ltd. and the request be sent to the Registrar to dissolve the board of the PCCB and conduct a fresh election as per provisions of the Co -operative Act. The petitioners and the Bank being aggrieved by order dated 5.7.2004 which has paralysed the absolute working of the bank filed cases before the Registrar Co -operative Society. The said cases were numbered as 105/04 and 106/04. According to petitioners avoidng hearing of the matter and keeping the urgency into shelves the Registrar Co -operative Society in league with the Managing Director of the Apex Bank issued memo no. 4054 dated 23.7.2004 to the petitioners to show cause that why the Board of Directors of PCCB be not suspended. Being aggrieved by the said memo 4059 contained in Annexure -1 the petitioners who happened to be Chairmen and Directors of the PCCB are before this Court.