CHANDRAKANTHARAJ, J. ( 1 ) THE petitioner is the gadag urban cooperative bank ltd. Which was originally constituted or incorporated in the year 1913 under the then Bombay Co-Operative Societies Act. To begin with, it was an agricultural co-operative society. In the year 1923, it was converted into a co-operative bank and since then it has been functioning as a co-operative banking institution. The petition is presented by the vicc-chairman Mr. R. s. akki. It is not stated in the petition as to how he has acquired the authority to represent co-operative institution either by resolution or by any provision made under the bye-laws of the co-operative society. ( 2 ) RULE was issued in this case on 4-6-1985 and interim stay was granted for two weeks on the same day. But on 17-6-1985 it was found that the liquidator had already taken charge and therefore the stay order was modified. By the modified interim stay Order, the liquidator was prevented from passing final orders in liquidation and no more. Thereafter, the matter was adjourned from time to time and it is heard today. ( 3 ) MR. A. K. patil, for Mr. U. l. narayana rao has contended that the impugned order as at Annexure-D dated 27-5-1985 is liable to be struck down in asmuchas it is violative of the procedure prescribed under Section 72 of the Karnataka co-operative societies Act, 1959, (hereinafter referred to as the act) and that subsection (4) of Section 72 of the act is not complied with inasmuch as consent of the reserve bank is not obtained before passing the impugned order. ( 4 ) THE impugned order as at Annexure-D. In its operative portion, it reads as follows:"from the above, it is evident that the management has failed to take suitable steps to set right the irregularities and bring the bank on the lines of r. b. i, norms even though sufficient opportunity was given. There is no hopes of its revival in near future. The reserve bank of india has consented to liquidate the said bank as per the reference cited at (2) above. As such the affairs of the bank he wound up. There is no hopes of its revival in near future. The reserve bank of india has consented to liquidate the said bank as per the reference cited at (2) above. As such the affairs of the bank he wound up. Hence the following order: order in exercise of the powers vested in me under Section 72a of the k. c. s. Act, 1959, i Sri ramu, deputy registrar of co-operative societies, dharwad do hereby order that the affairs of the gadag urban co-operative bank ltd. , gadag, be wound up. Further the assistant registrar of co-operative societies, gadag is appointed as a liquidator of the said bank under Section 73 (1) of the k. c. s. Act, 1959. This order shall come with immediate effect. Given under my hand and seal of this 27th day of may, 1985. Sd/- (ramu) deputy registrar, c. s. , dharwad. " ( 5 ) THE first of the contentions advanced for the petitioner is founded on the fact that no enquiry as contemplated under Section 72 (1) of the act was ever held. In any event, the petitioner had no notice of it and therefore the order is vitiated. Section 72 of the act reads as follows:"72. Winding up of co-operative societies.- (1) if the registrar after an inquiry has been held under Section 64 or an inspection has been made under Section 65 or on receipt of an application made by not less than three fourths of the members of a co-operative society, is of opinion that the society ought to be wound up, he may issue an order directing it to be wound up. (2) the registrar may, of his own motion, make an order directing the winding up of a co-operative society (a) where it is a condition of the registration of the society that the society shall consist of at least ten members and the number of members has been reduced to less than ten; or (b) where the co-operative society has not commenced working or has ceased to work; or (c) where the co-operative society has ceased to comply with the conditions imposed by or under this act regarding registration and management. (3) the registrar may cancel an order for the winding up of a co-operative society, at any time, in any case where, in his opinion, the society should continue to exist. (3) the registrar may cancel an order for the winding up of a co-operative society, at any time, in any case where, in his opinion, the society should continue to exist. (4) notwithstanding anything contained in this Section, no co-operative bank shall be wound up (or an order for winding up shall be cancelled) except with the previous sanction in writing of the reserve bank ). "from the language employed in sub-section (1) of Section 72 of the Act, it is clear that the enquiry contemplated is not under Section 72 of the act but under sections 64 and 65 of the act. It is only when the registrar forms an opinion based on the result of enquiry under Section 64 or 65 of the act that he may suo motu proceed to wind up the co-operative society in question, apart from other reasons, enumerated in sub-section (1) of Section 72 of the act. Annexure-A to the petition is a notice dated 7-2-1985 issued by the deputy registrar of co-operative 'societies, dharwar, the first respondent herein, calling upon the petitioner society to show cause why order should not be passed under Section 72 of the act winding up the affairs of the co-operative society in the light of its dismal performance over the years in not recovering the loans advanced by it. In the notice non-recoveries have been shown from the year 1978 to 1984. Those figures clearly indicate that as on the date of the notice the bank was in default to the extent of not recovering 72 per cent of its advances. Admittedly, the notice dated 7-2-1985 was replied to by the chairman as evidenced by Annexure-B to the petition. In that letter, there is a clear admission by the chairman that there is a larger percentage of unrecovered advances and they are owing to the fact that there was continuous draught condition in the years in question. That despite the best efforts, it could not recover all the loans. It sets out in detail, it has filed number of cases for recovery. It also sets out the fact that the institution has been working for 72 years. There is only a prayer for one more chance to improve the functioning of the bank. That despite the best efforts, it could not recover all the loans. It sets out in detail, it has filed number of cases for recovery. It also sets out the fact that the institution has been working for 72 years. There is only a prayer for one more chance to improve the functioning of the bank. It would be useful, therefore, to extract that portion of the letter which is an appeal to the deputy registrar of co-operative societies rather than a cause shown for not liquidating the bank. It is as follows: "hence we request your gdodselves to grant one more occasion to the management to improve the affairs of the bank by proposing a phased programme for a period'of 3-5 years in the best interest of the depositors as well as the members in general. " - that statement in Annexure-B clearly establishes that the bank had been given earlier opportunities to improve its performance and had failed to do so. This court drew the attention of the learned counsel to the detailed order impugned as at Annexure-D wherein each point raised by the president has been answered and negatived by the 1st respondent-deputy registrar of co-operative societies. Attention was also drawn specifically to the reference made to the enquiry held under Section 64 of the act. Further, attention was also drawn to the fact that the reserve bank was pressing the department of co-operation in Karnataka for the liquidation of this bank time and again. That fact was also adverted to by the 1st respondent in his order as at Annexure-D to the petition. The learned counsel merely pointed out that he had no notice of such enquiry under Section 64 of the act and nor was he aware of the correspondence between the reserve bank and the department of cooperation in karnataka. Therefore, this court perused the records produced by the learned government pleader who originally contended that the action was taken under Section 72a of the act i. e. , on a direction issued by the reserve bank of India under Section 72a of the act. That docs not appear to be the correct position having regard to the records. Therefore, this court perused the records produced by the learned government pleader who originally contended that the action was taken under Section 72a of the act i. e. , on a direction issued by the reserve bank of India under Section 72a of the act. That docs not appear to be the correct position having regard to the records. ( 6 ) THE records disclose that it was the joint registrar of co-operative societies in Karnataka who had recommended the liquidation and directed, the deputy registrar of co-operative societies-1st respondept herein, to liquidate the society having regard to its dismal performance over the years particularly in the matter of recovery of loans advanced which at one point of time stood at 85 per cent of the loans advanced. The reserve bank, time and again, reminded that the bank had not shown any improvement despite the chances given by the several rehabilitation committees constituted by the department. The recommendations of those committees remained unimplemented. The position of the bank did not improve. It is seen from the records that a review committee constituted by the government also recommended the liquidation of this co-operative bank. That committee has made reference to several earlier opportunities, given to the bank to improve its financial position. It is, in that circumstance, that the detailed order as at Annexure-D has been passed. ( 7 ) TO contend that no enquiry was held under Section 64 of the act in this court, appears to be an after thought. There is no reference to that aspect of the case in the chairman's letter in reply to the notice i. e. , notice as at Annexure-A and the reply by the chairman as at annexure-b. Therefore, there is nothing in the records for this court to disbelieve the version that an enquiry was held under Section 64 of the Act, not immediately before Annexure-A was issued but long prior to it. It was on account of the repeated appeals for more and more chances to improve its financial position that the report of the enquiry under Section 64 of the act was not acted upon at an earlier point of time. That also is evident from the impugned order as at Annexure-D to the petition. It was on account of the repeated appeals for more and more chances to improve its financial position that the report of the enquiry under Section 64 of the act was not acted upon at an earlier point of time. That also is evident from the impugned order as at Annexure-D to the petition. ( 8 ) I have satisfied myself that the reserve bank has given its consent for the liquidation of the society and also time and again reprimanded the state co-operative department for not taking prompt action under Section 72 of the act for which it had given consent. In that view of the matter, both the contentions advanced by the petitioner must fail and the petition therefore must fail and accordingly it is rejected. ( 9 ) IN the circumstances of the case, there will be no order as to costs. Writ petition rejected. --- *** --- .