1= / IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI IN THE HIGH Jurisdiction) TWENTY FOURTH DAY OF JANUARY THOUSAND AND TWENTY FIVE FRIDAY, THE TWO PRESENT JUSTiCE TARLADA RAJASEKHAR RAO WRIT petition NO: '>FTS7 OF 2024 HON’BLE SRI Between; The Durga Co-Operative Urban Bank Ud^ Street, Vijayawada, Andhra Pradesh - 520 001 Banka Srinivas H 953 Raja Rangayya Apparao Rep. by its Secretary Sri ...PETITIONER AND of Andhra Pradesh, rep. by its Societies) Secretariat Buildings Principal Secretary, (Co Velagapudi, Amaravathi, 1. The State Operative Andhra Pradesh , Central Office Building, Shahid Bhagat Central Office Building, 2. The Reserve Bank of India Singh Marg, Mumbai - 400 001. 3: The Executive Director, Shahid Bhagat Singh Marg, Mumbai -400 001. 4 The Chief General Manager, Department of Regulation, R.B.I., Central ■ Office Building, Shahid Bhagat Singh Marg, Fort, Mumba Reserve Bank of Department of Supervision Saifabad, Hyderabad - 500 004 5 The General Manager ’ india,6-1-136, Secretariat Road NTR District, Vijayawada, for Cooperation and Registrar 6. The District Co-Operative Officer of Co-operative 7. The Commissioner Societies, A.P., Guntur. ...respondents ’S Order dt. 24.01.2025 in lA (RR 6 & 7 are impleaded as per the Court’s 03/24 in Writ Petition and Affidavit) Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an Order, direction or Writ more particularly one in the nature of Writ of Mandamus, declaring the action of the 2nd respondent (Reserve Bank of India) in cancelling the Petitioners Co - Operative society banking license under the impugned proceedings DoR.MON.LC-07/12.24.020/2024-25 dt 08.11.2024 which was further vide 11.11.2024 the Petitioner on communicated CO.DOR.RG.NO.S4728/12-24-020/2024-2025 is arbitrary, illegal, violative of principles of natural justice and also the banking rules and consequently set aside the same by permitting the Petitioner Bank to continue its operations with a valid license. to lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of all further proceedings with respect to the impugned proceedings of cancellation of license of the Petitioner Bank by DoR.MON.LC-07/12.24.020/2024-25 dt the 2nd Respondent vide 08.11.2024 which was further communicated to the Petitioner on 11.11.2024 vide CO.DOR.RG.No.S4728/12-24-020/2024-2025. lA NO: 2 OF 2024 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the 1st Respondent to instruct the newly appointed Official Liquidator for the Petitioner Bank as to not to proceed with his further action and to facilitate the Petitioner Bank to proceed with its organizational work, pending disposal of the above writ petition. lA NO: 4 OF 2024 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Reserve Bank of India (2nd Respondent herein) to permit the Petitioner Bank to receive deposits, recover loans and to make payments to the depositors. The Petitioner Bank may further be permitted to prosecute its cases by engaging Counsels to effect speedy recovery of the loans advanced to its customers, including the day - to - day functioning of the Petitioner Bank in the interest of justice. Counsel for the Petitioner: SRI MSVS SUDHA RANI Counsel for the Respondent Nos.1, 6 & 7: GP FOR COOPERATION Counsel for the Respondent Nos. 2 to 5: SRI S SATYANARAYANA MURTHY The Court made the following: ORDER I APHC010513672024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3330] (Special Original Jurisdiction) FRIDAY,THE TWENTY FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 26357/2024 Between: The Durga Co-operative Urban Bank Ltd., AND The State Of Andhra Pradesh and Others ...PETITIONER ...RESPONDENT(S) Counsel for the Petitioner: 1.MSVS SUDHA RANI Counsel for the Respondent(S): 1.S SATYANARAYANA MOORTHY 2.GP FOR COOPERATION 2 The Court made the following order:- This Writ Petition is filed under Article 226 of Constitution of India for the following relief/s;- “...to issue an Order, direction or Writ more particularly one in the nature of Writ of Mandamus, declaring the action of the 2 respondent (Reserve Bank of India) in cancelling the Petitioners Co-operative society banking license under the impugned proceedings DoR.MON.LC-07/12.24.020/2024-25 dt: 08.11.2024 which was further communicated to the Petitioner on 11.11.2024 vide CO.DOR.RG.No.S4728/12-24- 020/2024-2025 is arbitrary, illegal, violative of principles of natural justice and also the banking rules and consequently set aside the same by permitting the Petitioner Bank to continue its operations with a valid license and to pass such other order or orders..." nd Heard learned counsel for the petitioner and learned counsel for 2. the respondents. Assailing the order dated 08.11.2024, passed by the Reserve 3. Bank of India, cancelling the petitioner’s license, the present writ petition is filed on several grounds. On 23.01.2025, the learned counsel appearing on behalf of the 2'^^ respondent-Reserve Bank of India, suggested that let the petitioner may avail the remedy under Section 22(5) of the Bank RegulationAct, 1949 (for short 'the Act’). On the suggestion made by the learned respondent, learned counsel for the petitioner requested time in order to secure instructions for the said proposal. 4. nd counsel for the 2 3 Accordingly, the matter is listed today i.e. on 24.01.2025. 5. Today, learned counsel for the petitioner submits that petitioner expressed his willingness to avail the appeal remedy under Section 22(5) of the Act, however, requested to grant some protection from this Court till the filing of the appeal and also further urged this Court to give a direction for operation of the business of the Co-operative bank. Learned counsel for the respondents would submit that a 6. liquidator has already been appointed and he took control of the business of the bank. Any direction given by this Court for the operation of business activities by the society, that would be incongruous and subject to legal implications, hence, requested not to be granted. Basing on the above submissions, the present Writ Petition is 7. disposed of, directing the petitioner to avail the remedy under Section 22(5) of the Act. However, Status Quo granted earlier is extended for one more month from the date of receipt of a copy of this order by the petitioner. 8. Meanwhile, petitioner is directed to file an appeal before the appellate authority under the Act, and appellate authority shall dispose of the same, as expeditiously as possible, in accordance with law. The 4 request of the petitioner to conduct business is left open to the petitioner to file an application before the appellate authority. 9. There shall be no order as to costs. As a sequel thereto, miscellaneous Petitions pending, if any shall stand closed. Sd/- M SRiNIVAS ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To. 1. The Principal Secretary, (Co - Operative Societies) Secretariat Buildings, Velagapudi, Amaravathi, Andhra Pradesh 2. The Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Marg, Mumbai - 400 001. 3. The Executive Director, Reserve Bank of India, Central Office Building, Shahid Bhagat Singh Marg, Mumbai -400 001. 4. The Chief General Manager, Department of Regulation, R.B.I., Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai. 5. The General Manager, Department of Supervision, Reserve Bank of India, 6-1-136, Secretariat Road, Saifabad, Hyderabad - 500 004 6. One CC to Sri MSVS Sudha Rani Advocate [OPUC] 7. Two CCs to GP for Cooperation, High Court of Andhra Pradesh. [OUT] 8. One CC to Sri S Satyanarayana Murthy Advocate [OPUC] 9. Three CD Copies TF HIGH COURT DATED:24/01/2025 ORDER WP.No.26357 of 2024 50^ ano/7^;^ 0 5 FEB 2025 o . Current oecuon DISPOSING OF THE W.P., WITHOUT COSTS