Centre, RBI told to file counter on co-op banks’ plea

Observing that the ambivalence of the constitutional provisions have to be considered based on constitutional federalism, and constitutional supremacy, which outlines the doctrine of separation of powers, the first bench comprising Chief Justice AP Sahi and Justice Senthilkumar Ramamoorthy said: “In our opinion, unless there is an imminent tangible cause or evidence indicating actual invasion of the rights of the petitioner banks in running the affairs of the society, it would not be appropriate to consider the issue of interim relief at this stage.” 

Following this, the bench on accounting for the time sought by the Additional Solicitor General R Sankaranarayanan and RBI counsel, if the court proceeded to examine and test the validity on the grounds of competence, granted the Union of India and RBI four weeks to file their counter-affidavits and thereafter two weeks to the petitioner to file a rejoinder.

 Senior Counsel PH Aravindh Pandian, appearing for Big Kanchipuram Cooperative Town Bank Ltd, Kanchipuram and Velur Cooperative Urban Bank Ltd, Namakkal had submitted that since the ordinance has already been notified, the banks are under threat of their rights being invaded to administer the society.