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Issues Involved:
1. Jurisdiction of authorities under the Andhra Pradesh Co-operative Societies Act, 1964 (the 1964 Act) versus the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (the 1993 Act). 2. Interpretation of legislative entries and the constitutionality of state versus union legislative powers. 3. Applicability of the 1993 Act to co-operative banks. 4. Validity of proceedings initiated under the 1964 Act for recovery of debts due to co-operative banks. 5. Legislative competence of the state under entry 32, List II versus entry 45, List I of the Seventh Schedule of the Constitution. Detailed Analysis: 1. Jurisdiction of Authorities under the 1964 Act versus the 1993 Act: The judgment addresses the jurisdictional conflict between the authorities under the 1964 Act and the Tribunals constituted under the 1993 Act. It was held that the Tribunals under the 1993 Act have exclusive jurisdiction to entertain and decide applications from co-operative banks for recovery of debts due to them. The jurisdiction of the Registrar under the 1964 Act is excluded by the provisions of the 1993 Act, particularly sections 17, 18, and 34, which confer exclusive jurisdiction on the Tribunals for recovery of debts due to banks and financial institutions. 2. Interpretation of Legislative Entries and Constitutionality: The judgment extensively discusses the interpretation of legislative entries in the Seventh Schedule of the Constitution. It emphasizes the principle that legislative entries must be given a broad and liberal interpretation to avoid conflicts. The court applied the doctrine of "pith and substance" to determine the true nature and character of the legislation, concluding that the recovery of debts due to banks falls within the core area of "banking" under entry 45, List I, and is thus within the exclusive legislative competence of the Union. 3. Applicability of the 1993 Act to Co-operative Banks: The court held that co-operative banks are "banks" and "banking companies" within the meaning of the 1993 Act. This conclusion was based on the interpretation of the definitions provided in the 1993 Act and the Banking Regulation Act, 1949 (the 1949 Act). The court rejected the contention that co-operative banks are excluded from the purview of the 1993 Act, affirming that the provisions of the 1993 Act apply to co-operative banks as well. 4. Validity of Proceedings Initiated under the 1964 Act: The judgment invalidates the proceedings initiated under the 1964 Act for recovery of debts due to co-operative banks. It was held that any awards, certificates, or execution proceedings initiated by the Registrar under the 1964 Act are null, void, and inoperative if they pertain to the recovery of debts due to co-operative banks. The court emphasized that such matters fall exclusively within the jurisdiction of the Tribunals under the 1993 Act. 5. Legislative Competence of the State under Entry 32, List II versus Entry 45, List I: The court concluded that the legislative field of "banking" under entry 45, List I, includes all aspects of banking, including the recovery of debts due to banks. Consequently, the state legislature is incompetent to legislate on matters related to the recovery of debts due to co-operative banks, as these fall within the exclusive domain of the Union. The court held that sections 61 and 71 of the 1964 Act, to the extent they confer jurisdiction on the Registrar to recover debts due to co-operative banks, are beyond the legislative competence of the state and invalid. Conclusions: - Recovery of debts due to banking institutions, including co-operative banks, is within the exclusive legislative field of "banking" under entry 45, List I. - Co-operative banks are "banks" and "banking companies" under the 1993 Act. - The Tribunals under the 1993 Act have exclusive jurisdiction to adjudicate claims for recovery of debts due to co-operative banks. - Sections 61 and 71 of the 1964 Act, insofar as they confer jurisdiction on the Registrar to recover debts due to co-operative banks, are invalid. - The proceedings initiated under the 1964 Act for recovery of debts due to co-operative banks are null, void, and inoperative.
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