- 1 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 2613 OF 2021 (GM-RES) BETWEEN: 1. SRI. G. S. VENKATESHAMURTHY, S/O G. SURYANARAYANA RAO, AGED ABOUT 75 YEARS, 2. SMT. BHAGYALAKSHMI Y.K., W/O SRI. G.S.VENKATESHAMURTHY, AGED ABOUT 67 YEARS, BOTH ARE R/AT NO.232, INDRANAGAR, KOPPA TALUK, CHIKKAMAGALURU - 577 126. BOTH ARE REPRESENTED BY THEIR POWER OF AUTHORITY HOLDER SMT.G.V.POOJA. …PETITIONERS (BY SRI. MURALIDHAR S.R., ADVOCATE) AND: 1. THE PRESIDENT, SRI GURURAGHAVENDRA SAHAKARA BANK NIYAMITH, NO.15, SUBBARAMACHETTI ROAD, NETTAKALLAPPA CIRCLE, BASAVANGUDI, BENGALURU - 560 004. 2. CHIEF EXECUTIVE OFFICER, SRI GURURAGHAVENDRA SAHAKARA BANK NIYAMITH, NO.15, SUBBARAMACHETTI ROAD, NETTAKALLAPPA CIRCLE, BASAVANGUDI,BENGALURU - 560 004. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 3. THE CHIEF SECRETARY, MINISTRY OF FINANCE, JEEVAN DEEP BUILDING, PARLIAMENT STREET, NEW DELHI - 110 001. 4. THE GOVERNOR, RESERVE BANK OF INDIA, CENTRAL OFFICE, SBS MARGH, MUMBAI - 400 001. 5. THE CHIEF GENERAL MANAGER, RESERVE BANK OF INDIA, CENTRAL OFFICE, SBS MARGH, MUMBAI - 400 001. …RESPONDENTS (BY SRI.S.D.N.PRASAD, ADVOCATE FOR R1; SRI.MANIK B.T., ADVOCATE FOR R4 AND R5; R2 - THE CEO, GURURAGHAVENDRA SAHAKARA BANK NIYAMITHA, BENGALURU SERVED; ASG FOR R3) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DIRECTIVE ISSUED BY THE R-4 AND 5 VIDE DATED 07.07.2020 EXTENDED FOR ANOTHER 6 MONTHS VIDE THE DIRECTIVE DATED 10.01.2021 VIDE ANNX-AA AGAINST THE PETITIONERS AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL ORAL ORDER Petitioners who are the retired pensioners and members of Sri Guru Raghavendra Sahakara Bank Niyamitha-the - 3 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 respondent Nos.1 and 2 herein are before this Court being aggrieved by the directives issued by respondent Nos.4 and 5- Reserve Bank of India as per Annexure-AA and seeking direction to permit the petitioners to withdraw their deposits in stages on percentage basis and also for payment of periodical interest until relaxation of the restrictions. 2. Learned counsel for the petitioners taking this Court through the records submits that, more than six years have lapsed from the date of issuance of 1st directive in the year 2020 by the Reserve Bank of India in purported exercise of power under Section 35A r/w Section 56 of the Banking Regulation Act, 1949, and the said directive has been periodically extended without any hope for the petitioners. 3. It is submitted that petitioners who are aged more than 70 years have left high and dry as fruits of their hard earned savings have been denied and Reserve Bank of India has conveniently turned its blind eye to the sufferings of the petitioners. 4. It is further submitted that depositors/petitioners have not been informed about the progress made by the - 4 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 Reserve Bank of India in the affairs of the respondent-Co- operative Bank in its revival and respondent-Reserve Bank of India cannot endlessly extend the directives contained under Section 35A of the Banking Regulation Act, 1949, without giving any benefits to the petitioners. No steps have been taken even under Sections 35AA and 35AB of the Banking Regulation Act, 1949. 5. It is further submitted that, under circumstances, the respondent-Reserve Bank of India, be directed to release periodical deposits or interest amount for the survival of the petitioners. 6. In response, learned counsel appearing for the respondent-Co-operative Bank and respondent-Reserve Bank of India submit that efforts are constantly being made for revival of the respondent-Co-operative Bank. Deliberations in this regard are on, as and when the revival takes place, the requests of the persons as that of the petitioners would be considered. That since the mis-appropriated amount belonging to the depositors by the persons at the helm of affairs of the respondent-Co-operative Bank at the relevant point of time was in excess of Rs.1500/- Crores as against which only portion of - 5 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 Rs.200/- Crores has been recovered, the respondent-Co- operative Bank has made its best to pay the interim amount in terms of DICGC Scheme. 7. Heard the learned counsel appearing for the parties and perused the material placed on record. 8. It is unfortunate that the petitioners like many others who had deposited their hard earned savings to meet evening time of their life have been deprived of from their own savings. The relief sought for in the petition is to quash the directives issued by the respondent-Reserve Bank of India as per Annexure-AA only on the ground of delay in payment of amount to the petitioners. Sections 35A, 35AA and 35AB of the Banking Regulations Act, which is relied upon by the learned counsel for the petitioner read as under: [35A. Power of the Reserve Bank to give directions.--(1) Where the Reserve Bank is satisfied that- (a) in the [public interest]; or [(aa) in the interest of banking policy; or] (b) to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the - 6 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 depositors or in a manner prejudicial to the interests of the banking company; or (c) to secure the proper management of any banking company generally,it is necessary to issue directions to banking companies generally or to any banking company in particular, it may, from time to time, issue such directions as it deems fit, and the banking companies or the banking company, as the case may be, shall be bound to comply with such directions. (2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any direction issued under sub-section (1), and in so modifying or cancelling any direction may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.] [35AA. Power of Central Government to authorise Reserve Bank for issuing directions to banking companies to initiate insolvency resolution process.--The Central Government may, by order, authorise the Reserve Bank to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016). 35AB. Power of Reserve Bank to issue directions in respect of stressed assets. (1)Without prejudice to the provisions of section 35A, the Reserve Bank may, from time to time, issue directions to - 7 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 any banking company or banking companies for resolution of stressed assets.(2)The Reserve Bank may specify one or more authorities or committees with such members as the Reserve Bank may appoint or approve for appointment to advise any banking company or banking companies on resolution of stressed assets.] 9. Perusal of Annexure-A indicate that the same has been issued under Section 35A of the Banking Regulation Act,1979, which gives absolute discretion to the respondent- Reserve Bank of India to issue directions as contemplated there under and extend the same from time to time. Further, perusal of the provisions noted above indicate that the respondent- Reserve Bank of India has given absolute discretion in the matter to issue, modify or cancel any directions with such conditions as it thinks fit. 10. Though, learned counsel for the petitioners points out, and refers to Section 35AA and 35 AB, of the Banking Regulation Act, the same would be of no consequences as the said provisions refers to the steps to be taken under the Insolvency and Bankruptcy Code (IBC), which even if initiated may not result in the relief sought for by the petitioners. Submissions adverting to said provisions are of no avail. - 8 - HC-KAR NC: 2026:KHC:27743 WP No. 2613 of 2021 11. In the light of submissions made by the learned counsel for the respondent-Co-operative Bank and respondent- Reserve Bank of India regarding steps being taken for reviving the Bank, this Court do not see any justification to issue any directions in this regard. Further, admittedly petitioners have been paid interim payment of Rs.5,00,000/- each in terms of DICGC Scheme. 12. Recording the submissions made by the learned counsel for the respondents, as to the steps being initiated to revive the respondent-Co-operative Bank, and since no grounds being made out for grant of relief as sought for, the petition is disposed of. Sd/- (M.G.S. KAMAL) JUDGE HR List No.: 1 Sl No.: 7