Mehsana District Central Cooperative ... vs State Of Gujarat And Ors. [Alongwith ...

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, determining that the appellant-bank, as a cooperative bank, is governed by the provisions of the Banking Regulation Act rather than the investment restrictions of the State Act. The Court held that the appellant was entitled to engage in banking activities as defined under the Banking Regulation Act, thereby allowing the appeal against the High Court's decision. The ruling clarifies the primacy of the Central Act over the State Act in matters of banking operations.