TaxTMI 
TaxTMI 
1998 (4) TMI 557
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....tral Act 23 of 1965, cannot have any relevance to such activities. On account of the said Central Legislation, the provisions contained in the Act becomes ultra vires the powers of the State Legislature by virtue of provisions contained in Article 245 of the Constitution. 2. Learned Counsels appearing in the case, while arguing the entire issue in detail, agreed to have all these petitions disposed of by a common judgment. They further prayed that This Court need not go into various questions of fact raised in these matters, for, they are to be challenged before the Authorities, who issued notices, requiring the Bank and its officers to show cause why action contemplated by Section 147 of the Act are not to be initiated. On this basis, we ....
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....st 1 of Seventh Schedule authorises the Central Government and the Central Government alone to legislate on Banking and Banking Corporations. Invoking the power under those Entries, Central Government enacted Banking Regulation Act, as amended by Act 23 of 1965. By that Amending Act, Co-operative Banks have been brought under the Banking Regulation Act. Co-operative Societies Act of Gujarat has been enacted, invoking the powers under Entry 32 of List II of the Seventh Schedule. The said enactment can, under no circumstances, enable the State Government or its officers to impose any restriction in the activities of the Bank. 4. Argument advanced by learned Counsel representing the petitioners is that matters regarding incorporation, regulat....
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....o also, since it is carrying on the business of banking, it may appear to be coming within the scope of Entry 45 of List 1. To have a harmonious construction of Entry Nos. 43 and 45, it is to be understood that only business of banking, pure and simple, falls within the purview of Entry 45, while incorporation of a Trading Corporation, engaged in banking, must fall within the ambit of Entry 43. In this view, to have a harmonious understanding, Co-operative Banks may fall within Entry 43 and not under Entry 45 of List 1. But Entry 43 specifically excludes Co-operative Societies from its purview. When such a specific exclusion of the Co-operative Societies is provided in Entry 43, Cooperative Societies, engaged in banking, should be taken out....
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....an those mentioned in Clauses (a) to (f) of this sub-section. Petitioners sought the permission of the State Government to invest funds in the institution outside those falling under Clauses (a) to (f). Government did not accord permission to make such investment. In spite of this, they invested the funds in another Mutual Fund. That investment, according to the Bank, was for getting more returns. On account of the liquidation of the Mutual Fund, in which the investment has been made, notices have been issued to the Bank, calling for explanation as to why action should not be initiated, as contemplated by Section 148 of the Act. Petitioners have not filed their replies to those notices. In such a situation, any observation made by us on thi....