Vyavasaya Seva Sahakara Bank Limited and Another vs The Managing Director Bangalore and Ramanagaram District Central Co-operative Bank and Another

H.G. Ramesh, J.—The petitioner-Co-operative Banks are the members of respondent No. 1 DCC Bank. Their grievance is that their names have not been included in the eligible voters'' list at Annexure-G published by respondent No. 1-Bank for the purpose of holding election to its committee of management scheduled on 10.4.2010.

I have heard Sri Jayakumar S. Patil, learned Senior Counsel appearing for Sri S. Raju, learned Counsel for the petitioners and Sri Someshekar, learned Counsel appearing for respondent No. 1-D.C.C. Bank. The submission of Sri Somashekar is that the percentage of recovery of loans by the petitioner-Banks is less than seventy five percent of the total demand and hence their case would fall within the ambit of Sub-section (2)(b)(iv) of Section 20 of the Karnataka Co-operative Societies Act, 1959 (''the Act'' for short) and therefore they are not entitled to vote in the election scheduled on 10.4.2010.

The petitioners have produced Annexure-F, which is a statement issued by respondent No. 1 Bank showing the percentage of recovery of loans by the member banks. As could be seen from the said statement, the recovery of loans by the petitioner-Banks was below 75% of the total demand during the relevant co-operative year; the recovery made by petitioner No. 1 was 59% and petitioner No. 2 was 56%. This statement at Annexure-F is not disputed by the petitioners. However, Sri Jayakumar S. Patil, learned Senior Counsel contends that the demand relating to loans pertaining to Seasonal Agricultural Offering (SAO) included in the statement shall not be considered in determining the percentage of recovery of loans. In my opinion, as the demand relating to such loans is not excluded from the scope of "the total demand" stated in Sections 20(2)(b)(iv) of the Act, the contention is liable to be rejected and is accordingly rejected.

If the recovery of loans by a member-Bank is less than 75% of its total demand during the relevant co-operative year. Section 20(2) of the Act would come into play and consequently, the member-Bank shall not have the right to vote at the meetings of the Co-operative Society in which it is a member.

The case of the petitioners herein would clearly fall within the ambit of Section 20(2)(b)(iv) of the Act as their percentage of recovery of loans is less than seventy five percent of the total demand during the relevant cooperative year and hence they are not entitled to vote in the election to the committee of management of respondent No. 1-Bank scheduled on 10.4.2010. The petitions are devoid of merit and are accordingly dismissed but with no order as to costs.

Petitions dismissed.