BOARD OF DIRECTORS OF ANDHRA PRADESH CO-OPERATIVE CENTRA vs CHITTOR PRIMARY CO-OPERATIVE LAND MORTGAGEBANK LTD. ETC.

The Supreme Court examined the validity of Rule 70 of the Andhra Pradesh Cooperative Societies Rules, which empowers the Board of the Central Land Mortgage Bank to constitute a centralized service for mortgage banks. The Court held that this rule is not ultra vires Section 115 of the Andhra Pradesh Cooperative Societies Act, 1964, which grants supervisory powers to the Board over mortgage banks. The judgment affirmed the legality of the Board's authority to make appointments and levy contributions from the mortgage banks, thereby upholding the framework established by the Act.