Mehsana Dist. C.Co-Op. Bank Ltd., & Ors vs State Of Gujarat & Ors

The Supreme Court addressed the conflict between Section 71 of the Gujarat Co-operative Societies Act, 1961 and Sections 5(b) and 6(1)(a) of the Banking Regulation Act, 1949. The Court held that cooperative banks must adhere to the investment norms specified in Section 71 of the Gujarat Act, despite the broader definitions of banking in the Banking Regulation Act. The appeal was dismissed, affirming the High Court's decision that the appellant-bank's investment in a mutual fund without state permission was unauthorized.