JUDGMENT : Sheel Nagu, J.:- 1. This writ petition filed under Article 226 of Constitution of India assails the order dated 04.05.2011 passed by District Magistrate, Gwalior/Respondent No. 1 by invoking the provisions of Secton 144 of Cr.P.C. whereby the petitioner has been prohibited from carrying on it's business in the District of Gwalior with a view to abort happening of untoward incidence and for maintaining public order, the premises of the petitioner has been sealed. 2. The impugned order in this case dated 04.05.2011 has been passed primarily on the ground that the petitioner despite being a non banking financial company is accepting deposits from the members of the public without getting itself registered as per provisions of Section 45- IA of the Reserve Bank of India Act, 1934. 3. Though, the impugned order dated 04.05. 2011 passed under Section 144 of Cr.P.C has died its own death due to expiry of two months validity period as provided in Section 144 Cr.P.C, but this Court thinks it appropriate to adjudicate upon the validity of the reason for which the impugned order has been passed. 4. The Petitioner which is known by the name and style of Sakh Sahkarita Maryadit Dabra is a "co-operative" registered under the M.P. Sakh Sahkarita Adhiniyam, 1999 which is evident from the certificate of registration (vide P-2 & P-3) issued by the Dy. Registrar, Co-operative Societies, District Gwalior. The petitioner contends that its primary aim and object is to extend loan exclusively to its members after accepting security amount from the members. The petitioner further contends that it has not appointed any agent for giving effect to its aims and objects. The petitioner also contends that the amount of security deposited by its members is available with the petitioner institution in the shape of FDR in the Bank which is evident from the accounts which are duly audited. As such, the petitioner contends that it is not a Non-banking Financial Company and therefore, provisions of Section 45-1A of the RBI Act do not get attracted. The petitioner/company lastly contends that no act of the company or its members or its employees has led to any disturbance in the peace and tranquility within District Gwalior and therefore, invocation of Section 144 of CrPC against the petitioner is uncalled for. 5. The petitioner/company lastly contends that no act of the company or its members or its employees has led to any disturbance in the peace and tranquility within District Gwalior and therefore, invocation of Section 144 of CrPC against the petitioner is uncalled for. 5. The perusal of order passed by the District Magistrate (vide P/1) dated 04.05.2011 indicates that the entire action initiated under Section 144 of Cr.P.C against the petitioner is based on the assumption that the petitioner is a Non-banking Financial Company which is receiving deposits from the members of the public without any permission in that regard from the Reserve Bank of India under Section 145-IA of the RBI Act and also that no information to the competent authority in this regard has been furnished by the petitioner as required under the M.P. Nikshepakon Ke Hiton Ka Sanrakshan Adhiniyam, 2000. 6. It has thus to be seen that the first assumption of the petitioner/company being Non-banking Financial Company is correct or not. 7. Section 45-IA of the RBI Act has been introduced into the RBI Act, 1934 w.e.f 09.01.1997 whereby the registration of Non- banking Financial Company has been prescribed as pre-requisite for such company to carry on its business. For convenience, Section 45-IA of the RBI Act is reproduced below :- 45-IA. Requirement of registration and net owned fund. -(1) Notwithstanding anything contained in this chapter or in any other law for the time being in force, no non-banking financial company shall commence or carry on the business of a non- banking financial institution without- (a) obtaining a certificate of registration issued under this Chapter; and (b) having the net owned fund of twenty - five lakh rupees or such other amount, not exceeding two hundred lakh rupees, as the Bank may, by notification in the Official Gazette, specify. (2) Every non-banking financial company shall make an application for registration to the Bank in such form as the Bank may specify: Provided that a non-banking financial company in existence on the commencement of the Reserve Bank of India (Amendment) Act, 1997 shall make an application for registration to the Bank before the expiry of six months from such commencement and notwithstanding anything contained in sub-section (1) may continue to carry on the business of a non-banking financial institution until a certificate of registration is issued to it or rejection of application for registration is communicated to it. (3) Notwithstanding anything contained in sub-section (1), a non-banking financial company in existence on the the commencement of the Reserve Bank of India (Amendment) Act, 1997 and having a net owned fund of less than twenty-five lakh rupees may, for the purpose of enabling such company to fulfill the requirement of the net owned fund, continue to carry on the business of a non-banking financial institution: (i) for a period of three years from such commencement; or (ii) for such further period as the Bank may, after recording the reasons in writing for so doing, extend, subject to the condition that such company shall, within three months of fulfilling the requirement of the net owned fund, inform the Bank about such fulfillment: Provided that the period allowed to continue business under this sub-section shall in no case exceed six years in the aggregate. (4) The Bank, for the purpose of considering the application for registration may require to be satisfied by an inspection of the books of the non- banking financial company or otherwise that the following conditions are fulfilled:- (a) that the non-banking financial company is or shall be in a position to pay its present or future depositors in full as and when their claims accrue; (b) that the affairs of the non-banking financial company are not being or are not likely to be conducted in a manner detrimental to the interest of its present or future depositors; (c) that the general character of the management or the proposed management of the non- banking financial company shall not be prejudicial to the public interest or the interests of its depositors; (d) that the non-banking financial company has adequate capital structure and earning prospects; (e) that the public interest shall be served by the grant of certificate of registration to the non- banking financial company to commence or to carry on the business of India; (f) that the grant of certificate of registration shall not be prejudicial to the operation and consolidation of the financial sector consistent with monetary stability and economic growth considering such other relevant factors which the Bank may, by notification in the Official Gazette, specify; and (g) any other condition, fulfillment of which in the opinion of the Bank, shall be necessary to ensure that the commencement of .or carrying on of the business in India by a non- banking financial company shall not be prejudicial to the public interest or in the interest of the depositors. (5) The Bank may, after being satisfied that the conditions specified in sub-section (4) are fulfilled, grant a certificate of registration subject to such conditions which it may consider fit to impose. (5) The Bank may, after being satisfied that the conditions specified in sub-section (4) are fulfilled, grant a certificate of registration subject to such conditions which it may consider fit to impose. (6) The Bank cancel a certificate of registration granted to a non-banking financial company under this section if such company -(i) ceases to carry on the business of a non- banking financial institution in India; or (ii) has failed to comply with any condition subject to which the certificate of registration had been issued to it, or (iii) at any time falls to fulfill any of the conditions referred to in clauses (d) to (g) of sub-section (4); or (iv) fails- (a) to comply with any direction issued by the Bank under the provisions of this Chapter; or (b) to maintain accounts in accordance with the requirements of any law or any direction or order issued by the Bank under the provisions of this Chapter; or (c) to submit or offer for inspection its books of account and other relevant documents when so demanded by an inspecting authority of the Bank; or (d) has been prohibited from accepting deposit by an order made by the Bank under the provisions of this Chapter and such order has been in force for a period of not less than three months: Provided that before canceling a certificate of registration on the ground that the non-banking financial company has failed to company with the provisions of clause (ii) or has failed to fulfill any of the conditions referred to in clause (iii) the Bank, unless it is of the opinion that the delay in canceling the certificate of registration shall be prejudicial to public interest or the interest of the depositors or the non-banking financial company, shall give an opportunity to such company on such term as the Bank may specify for taking necessary steps to comply with such provision or fulfillment of such condition: Provided further that before making any order of cancellation of certificate of registration, such company shall be given a reasonable opportunity of being heard. (7) A company aggrieved by the order of rejection of application, for registration or cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which such order of rejection or cancellation is communicated to it, to the Central Government and the decision of the Central Government where an appeal has been preferred to it, or of the Bank where no appeal has been preferred, shall be final: Provided that before making any order of rejection of appeal, such company shall be given a reasonable opportunity of being heard. Explanations.-For the purposes of this section, -(I) "net owned fund" means- (a) the aggregate of the paid - up equity capital and free reserves as disclosed in the latest balance-sheet of the company after deducting there from (i) accumulated balance of loss; (ii) deferred revenue expenditure; and (iii) other intangible assets; and (b) further reduced by the amounts representing- (1) investments of such company in shares of (i) its subsidiaries; (ii) companies in the same group; (iii) all other non-banking financial companies; and (2) the book value of debentures, bonds, outstanding loans and advances (including hire- purchase and lease finance) made to, and deposits with, (i) subsidiaries of such company; and (ii) companies in the same group, to the extent such book value exceeds ten per cent, of (a) above. (II) "subsidiaries" and "companies in the same group" shall have the same meanings assigned to them in the Companies Act, 1956, (1 of 1956). 8. From reading of the above said provision, it is crystal clear that the overriding effect of the said provision and the requirement of obtaining permission from the RBI before commencing or carrying on business is meant for Non-banking Financial Companies as defined in Section 45-1 (f) which is reproduced below. (f) "non-banking financial company" means -(i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. 9. 9. A joint reading of both the above said provisions i.e., Section 45- IA and Section 451 (f) of RBI Act 1935, the first and foremost requirement for application of trappings of Section is that the institution which intends to commence or carry or "business of Non-banking Financial Companies" should be a "Non - banking Financial Company". 10. The petitioner undoubtedly is a "co-operative Registered under the Sakh Sahkarita Adhiniyam, 1999" which been promulgated to provide for the formation of co-operative and conversion of a co-operative society into the co-operative as self reliant, self help, mutual aid, autonomous, voluntary democratic, business enterprises, owned, managed and controlled by members for their economic and social betterment, through the financially gainful provision of services which fulfill a common core need felt by them, and for the matters connected therewith or incidental thereto. 11. A close scrutiny of the Act of 1999 indicates that there is not much of a difference between a "co-operative society" created under the M.P. Co­operative Societies Act, 1960 and a "Co-operative" under the M.P. Sakh Sahkarita Adhiniyam, 1999, barring the fact that the co-operative created under the Adhiniyam of 1999 enjoys larger degree of autonomy than a co­operative society under the Adhiniyam of 1960. Thus, in sum and substance the petitioner is a co-operative society for the purpose of the RBI Act 1935. 12. The above said conclusion has been arrived at after noticing the fact that the Adhiniyam of 1999 came into effect from 15.02.2000, whereas the definition of "Non-banking Financial Company", "Non-banking Institution" and Section 45-1A in the RBI Act of 1934 had come into effect from 09.01.1997 when the Adhiniyam of 1999 was not in existence. 13. We are thus of the considered view that the term "cooperative society" used in chapter III-B of the RBI Act, 1934 could safely be read down as "co­operative" as contemplated in Adhiniyam, of 1999. 14. It is pertinent to point out that the provisions of Section 45 H provides that the provisions of Chapter III B of the Act, 1934 are interalia not applicable to the primary credit society. More so the provisions of Section 45-1 (c) (e) provides that the co-operative society will not be included in the definition of financial institution for the purposes of Act of 1934. More so the provisions of Section 45-1 (c) (e) provides that the co-operative society will not be included in the definition of financial institution for the purposes of Act of 1934. The conjoint reading of the above said two provisions of the Act of 1934 discloses that a primary credit society is exempted from the application of provisions of Section 45-1 which is included in Chapter III B of 1934. Pausing here for a moment and reverting back to the Adhiniyam, 1999 it is seen from definition clause contained in Section 2 (j) that primary co-operative has been defined to mean a co-operative of which no other co-operative is a member. In the instant case, petitioner has filed the bye-laws (vide-P/4), a reading of which discloses that only a person can become a member of the petitioner co-operative and no other co-operative can become its member. More so, perusal of the list of members (vide-P/7) which are 389 in number also discloses that all the members are individual and none of the members of the petitioner co­operative is a co-operative. Therefore, the petitioner co-operative squarely falls within the definition of primary co-operative under Section 2 (j) of the Adhiniyam, 1999. Thus, being a primary credit society the rigours of the provisions of Chapter III B of the Act of 1934 which includes Section 45-1 are not applicable to the petitioner co-operative. 15. From the above said legal provisions, it is evident that to attract the rigors of Section 45- IA of RBI Act 1934 the first and the foremost condition which to be satisfied is that the activity of non-banking finance is being commenced by a Non-banking Financial Company. 16. From the above said discussion it is further evident as day light that the petitioner is a "co-operative" but is not a company registered under the Companies' Act. The Collector has moved on the assumption that the petitioner is a Non-banking Financial Company which itself is baseless as the petitioner is not a Non- banking Financial Company. The foundation of the impugned order (Anhexure P/1) having been demolished the edifice can not stand and thus has to fall down. 17. The Collector has moved on the assumption that the petitioner is a Non-banking Financial Company which itself is baseless as the petitioner is not a Non- banking Financial Company. The foundation of the impugned order (Anhexure P/1) having been demolished the edifice can not stand and thus has to fall down. 17. Consequently, order dated 04.05.2011 which though has become non-existent on account of expiry its validity of two months is untenable in the eyes of law (sic) violative of Article 14 and 19 (1) (g) of the Constitution of India as it was passed without any application of mind and that it resulted into breach of the precious fundamental right of the petitioner to carry on its legitimate business in accordance with law. 18. It is held that the impugned order dated 04.05.2011 is the end result of arbitrary exercise of powers which is ipso-facto null and void. 19. This writ petition thus stands allowed by declaring that the impugned order dated 04.05.2011 is ipso-facto nonest in the eyes of law. This Court does not feel it appropriate to quash the said order because it does not exist in the eyes of law as of today. 20. This Court is compelled to direct that the respondents shall forthwith release the property and premises of the petitioner which were wrongly seized and sealed and will allow the petitioner to carry on its business in accordance with law. 21. Since, this Court has found that the, impugned order has been passed without any application of mind to the obvious legal provisions and has led to deprivation of fundamental right of the petitioner, the petitioner is entitled to a cost of Rs. 25,000/- from the respondents.