M. Sudhakar, v. The Chairman
Case brief
What is this about?
Full Bench of the High Court of Andhra Pradesh determined that recovery of debts from co-operative banks falls under the exclusive Union legislative field of 'banking'. Consequently, Tribunals under the 1993 Act, not the State Registrar, have exclusive jurisdiction to adjudicate such disputes. State provisions permitting the Registrar to adjudicate or issue recovery certificates in banking cases were declared ultra vires and void, though severable.
What did the court decide?
The word 'or financing bank' in Section 71(1) of the A.P. Co-operative Societies Act, 1964 is declared invalid. Sections 61 and 71(1) of the said Act are read down to exclude the Registrar's jurisdiction over debt recovery claims by co-operative banks in the course of their banking business. Tribunals under the 1993 Act have exclusive jurisdiction over such claims.