JUDGMENT : Raja Vijayaraghavan, J. This appeal is preferred by the Co-operative Department and Others challenging the judgment dated 12.06.2023 in W.P.(C). No. 37027/2010 passed by a learned Single Judge of this Court. 2. Short facts are as under: The respondent is a Co-operative Bank, falling under the category of a Primary Agricultural Co-operative Society. They instituted the Writ Petition challenging Ext.P1 circular dated 31.07.2009 and Ext.P2 circular dated 01.11.2010, issued by the Registrar of Co-operative Societies. By the aforesaid circulars, the Registrar had laid down the interest rates for lending and deposits to be followed by the entities covered under the Co-operative Societies Act. The Registrar had also issued Ext.P5 order, based on a preliminary report issued by the Unit Inspector, ordering the respondent/Bank to close down its business as according to the Registrar, the Bank had failed to follow the directives issued by the Registrar as per Ext.P1 and P2 circulars. The contention of the petitioner in the writ petition was that there was no enabling provision either under the Kerala Co-operative Societies Act or the Rules framed thereunder, conferring power on the Registrar to fix the rate of interest. It was contended that a Primary Agricultural Credit Society, like the petitioner, is a banking company as defined under the Banking Regulation Act, 1949, and as per provision 35 of the Act, only the Reserve Bank can monitor the rate of interest and not the Registrar. They stated, however, that after the issuance of Exhibit P1 and P2, the Bank has resolved as per Exhibit P3 and P4 minutes to follow the directives issued by the Registrar. The prayer in the writ petition was to quash Exhibits P1, P2, and P5. 3. By the judgment impugned, the learned Single Judge accepted the contention raised by the petitioner, holding that Ext.P1 and P2 cannot be sustained as only the Reserve Bank of India is conferred with the powers to fix the rate of interest in terms of the provisions of the Banking Regulation Act, 1949. The findings of the learned Single Judge are under challenge. 4. Sri. Imam Gregoriya Karatt, the learned Government Pleader submitted that Section 3 of the Banking Regulation Act, 1949 provides that the Act shall not apply to a Primary Agricultural Credit Society or a Co-operative Society, whose primary object and principal business is providing long-term finance for agricultural development. The findings of the learned Single Judge are under challenge. 4. Sri. Imam Gregoriya Karatt, the learned Government Pleader submitted that Section 3 of the Banking Regulation Act, 1949 provides that the Act shall not apply to a Primary Agricultural Credit Society or a Co-operative Society, whose primary object and principal business is providing long-term finance for agricultural development. It is submitted that on the above sole ground, the judgment rendered by the learned Single Judge is liable to be overturned. It is further submitted that the learned Single Judge had also not adverted to Section 58 of the Co-operative Societies Act r/w Rule 56(5) of the Rules, which confers ample powers to the Registrar to fix the rate of interest applicable to Co-operative Societies. The learned Government Pleader would also point out that an amendment was brought into Section 2(oa), which came into effect on 28.04.2010, as per which, insofar as the Primary Agricultural Credit Societies are concerned, whose principal object is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate of interest, were to be fixed by the Registrar. 5. We have heard, Sri. R.T Pradeep, the learned counsel appearing for the respondent and have considered the submissions advanced. 6. It is undisputed that the respondent is a Primary Agricultural Credit Co-operative Society. The learned Single Judge has proceeded to hold that the above Society would be covered by the Banking Regulation Act, of 1949. Section 3 of the Banking Regulation Act reads as under : 3. Act not to apply to certain cooperative societies.—Notwithstanding anything contained in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), this Act shall not apply to— (a) a primary agricultural credit society; or (b) a co-operative society whose primary object and principal business is providing of long-term finance for agricultural development, if such society does not use as part of its name, or in connection with its business, the words “bank”, “banker” or “banking” and does not act as drawee of cheques. 7. In view of Section 3 of the Act, 1949, it leaves no manner of doubt that the respondent/Society would not be covered by the provisions of the Act. 7. In view of Section 3 of the Act, 1949, it leaves no manner of doubt that the respondent/Society would not be covered by the provisions of the Act. In that view of the matter, the learned Single Judge clearly erred in holding that the interest rate for lending in advances could only be fixed by the Reserve Bank. On that sole ground, the judgment rendered by the learned Single Judge is liable to be overturned. 8. Furthermore, we find that the Act of 1969 was amended by Act 7 of 2010 substituting 2(oa), which came into effect on 28.4.2010. As per the said provision, insofar as the Primary Agricultural Credit Society is concerned, the rate of interest on loans and advances are to be fixed by the Registrar. Later, 2(oaa) was brought into the statute book by substituting (oa) with (oaa) with effect from 14.2.2013 wherein also it has been mentioned that the rate of interest on such loans and advances shall be the rate fixed by the Registrar. We also note that Rule 56(5) of the Rules which stipulate that the grant of loans and advances to any members or non-members by a society shall be subject to such terms and conditions as may be fixed or directions or guidelines as may be issued from time to time by authorities like the Registrar, the NABARD, RBI, as the case may be, by Special or General Order. For the above reasons also, the order passed by the learned Single Judge cannot be sustained. 9. In the case on hand, pursuant to the issuance of Exts. P1 and P2, on 30.11.2010, the Bank had decided to implement the rate of interest stipulated by the Registrar for loans and deposits and this fact in evident from Exts. P3 and P4 minutes dated 16.11.2010 and 30.11.2010. From Exts. P3 and P4, it is clearly evident that the respondent/society had accepted the powers of the Registrar for fixing the rate of interest. However, on the premise that higher interest was accepted during the interregnum period, Ext.P5 order dated 30.11.2010 was issued by the Registrar exercising powers under the Act and Rules and ordered the closure of the business of the bank. 10. However, on the premise that higher interest was accepted during the interregnum period, Ext.P5 order dated 30.11.2010 was issued by the Registrar exercising powers under the Act and Rules and ordered the closure of the business of the bank. 10. We directed the learned Government Pleader to get instructions and to ascertain whether, in view of Ext.P3 and Ext.P4, the appellants are insisting that the business of the Bank shall be closed down. The learned Government Pleader, on instructions, submitted that since the appellant has complied with the directives issued by the Registrar and has decided to follow the rates fixed by the Registrar as indicated in Ext.P3 and Ext.P4, the Department is not insisting on the closure of the Bank. We find that by Ext.P3 and Ext.P4, the Society has already decided to abide by Ext.P1 and Ext.P2 Circulars, acknowledging that the Registrar possesses the powers under the provisions of the Co-operative Societies Act to issue directives regarding interest on loans and advances. 11. In the light of the discussion above, we are of the opinion that this appeal can be allowed by setting aside the judgment rendered by the learned Single Judge. Exts.P1 and P2 are not liable to be interfered with. Ext.P5 to the extent that the Registrar has taken a decision to close down the business of the Bank and to initiate an inquiry under the provisions of the Act and Rules is quashed. However, it would be open to the Registrar to monitor the functioning of the Society and to initiate appropriate actions, if so warranted, strictly in accordance with the provisions of the Act.