VINAY KUMAR SINGH Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) IN the instant case the main prayer of the petitioners is to quash the resolution as contained in Memo No. 1428 dated 3-8-2007, whereby and whereunder, the jharkhand State Government has taken a decision in its Cabinet meeting for upgrading the Dhanbad Central Co-operative Bank limited into Jharkhand State Co-operative bank Ltd.

(2.) THE petitioner No. 1 is the Chairman of the Tetuliya, Lakhiabad Primary Agriculture credit Co-operative Society, for short hereinafter referred to as the Tetuluiya, lakhiabad PACS and the petitioner No. 2 is the Chairman of the Ojhadih Katamia Primary agriculture Credit Co-operative Society, for short hereinafter referred to as the ojhadih Katamia PACS, both the Societies are registered under the Co-operative Societies act having their area of operation, respectively within the administrative block of nirsa and Tundi in the District of Dhanbad. The societies of the petitioner Nos. 1 and 2 are the shareholders of the Dhanbad Central co-operative' Bank Ltd. Dhanbad (respondent no. 7), for short hereinafter referred to as the Dhanbad Bank, and by virtue of the same are also the members of its general Body which is its Supreme decision taking body.

(3.) THE main thrast of the argument raised by the learned Sr. Counsel Sri Anil Kumar sinha on behalf of the petitioners is that the state of Jharkhand does not have competence/jurisdiction to issue Annexure-9 i. e. the impugned memo dated 3-8-2007 under section 2 (u) of the National Bank for agriculture and Rural Development Act, 1981 (hereinafter referred to as 'nabard Act' ). According to him it defines only State Cooperative bank and it does not give any competence/jurisdiction to the State Government to declare any District Co-operative bank as State Co-operative Bank. The next contention raised by the petitioner is that the request of Jharkhand State government for granting Banking license to the Jharkhand State Co-operative Bank Ltd. under Section 22 (2) of the Banking Regulation act, 1949 has been turned down by the reserve Bank of India vide its letter dated. 8-1-2005. It has further been contended on behalf of the petitioner that there was no direction by the Reserve Bank of India in its order dated 8-1-2005 to issue order under section 2 (u) of the NABARD Act. The learned counsel for the petitioner further submits, that NABARD Act and the provisions thereto does not apply and Section 2 (u) which Is a definition clause cannot be utilized for the purpose of upgradation of dhanbad Central Co-operative Bank Ltd. to jharkhand State Co-operative Bank Ltd.