TMI Blog2004 (1) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... e mentioned in clauses (a) to (f) of the Section. Section 71 of the Act is relevant for the purpose of disposal of the present appeal. We shall be dealing with this Section in detail at an appropriate time. The appellant-bank sought permission of the State government to invest funds in an institution outside those falling under clauses (a) to (f) of Section 71(1) of the Act. However, the Government declined the request. Inspite of the refusal, the appellant-bank invested the funds in Mutual Fund, which was outside the purview of clauses (a) to (f) of Section 71 of the Act. It is stated that for non-compliance of Section 71 of the Act, notices were issued to the appellants calling for an explanation as to why action should not be initiated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the conflict is between Section 71 of the Gujarat Co-operative Societies Act and Sections 5(b) and 6(1)(a) of the Banking Regulation Act. To answer the aforesaid question it will be relevant to make a quick survey of the relevant provisions of the Gujarat Co-operative Societies Act and the Banking Regulation Act. To appreciate the controversy in proper perspective Sections 5(b) and 6(1)(a) of the Banking Regulation Act and Section 71 of the Gujarat Societies Act are extracted: - 5. Interpretation. - In this Act, unless there is anything repugnant in the subject or context, - (b) banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts fund, - (a) in a Central Bank, or the State Co-operative Bank, (b) in the State Bank of India, (c) in the Postal Savings Bank, (d) in any of the securities specified in section 20 of the Indian Trust Act, 1882 (II of 1992), (e) in shares, or security bonds, or debentures, issued by any other society with limited liability, or (f) in any co-operative bank or in any banking company approved for this purpose by the Registrar, an on such conditions as the Registrar may from time to time impose, (g) in any other mode permitted by the rules, or by general or special order of the State Government. (Emphasis supplied) (2) Notwithstanding anything contained in sub-section (1), the Registrar may, with the approval of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st March, 1962. The Constitution Bench of this Court in M. Karunanidhi Vs. Union of India and another, (1979) 3 SCC 431 had considered the question of repugnancy and inconsistency between the Central Act and the State Act and held that before any repugnancy can arise the conditions which must be satisfied are: (1) that there is a clear and direct inconsistency between the Central Act and the State Act; (2) that such an inconsistency is absolutely irreconcilable; and (3) that the inconsistency between the provisions of the two Acts is of such a nature as to bring the two Acts into direct collision with each other and a situation is reached where it is impossible to obey the one without disobeying the other. A fascicule reading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onjoint reading of Sections 2, 5 and 6 of the Banking Regulation Act and Section 71 of the Gujarat Co-operative Societies Act, in our view, there is no repugnancy or inconsistency between the State Act and the Central Act which satisfies the test set out by this Court in M. Karunanidhi's case (supra). The contention of the learned counsel for the appellants is not well founded. The appeal is devoid of merits and is accordingly dismissed. Briefly stated the facts are:- A complaint was filed by the respondents herein to the effect that the Central Cooperative Bank is governed by the provisions contained in the Gujarat Cooperative Societies Act, 1961 and the Rules framed thereunder. It is further alleged that the Mehsana District Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated above, the High Court by the impugned order issued a writ of mandamus, directing respondent Nos. 4 and 5 to take appropriate action against the appellants in accordance with the provisions contained in the Gujarat Cooperative Societies Act and the rules framed thereunder. We do not see any infirmity in the impugned order. The Acts and Rules are made to be followed and not to be violated. When the Statute prescribes the norms to be followed, it has to be in that fashion. Converse would be contrary to law. If there is any allegation of violation of statutory rules which have been brought to the notice of the authorities and if the concerned authorities do not perform their statutory obligation, as in the present case, any aggrieved c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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