#co-operative bank

Co-operative banks are not liable to deduct TDS on interest they pay to non-member co-operative societies under Section 194A(3)(v). The Bombay High Court set aside the ITAT order that treated the banks as assessee-in-default, confirming the statutory exemption. The ruling relieves all co-operative banks and their non-member society borrowers from TDS obligations.

The Bombay High Court holds that a co-operative bank’s dispute over professional fees paid to an empanelled valuer does not fall under Section 115’s mandatory notice requirement, as such services are ancillary to, not integral to, the society’s core business. This shields service providers from procedural hurdles in fee recovery suits, clarifying the boundary between commercial contracts and statutory governance of co-operative societies.

The Himachal Pradesh High Court has ruled that co-operative banks must recalculate outstanding loans under the H.P. Debt Reduction Act, 1976-capping interest and principal-before auctioning property of a deceased borrower’s surviving spouse. This prevents predatory compounding of debt and upholds the Act’s protective intent for vulnerable rural families, making statutory debt limits binding even after death.

Bombay High Court rules that service disputes involving employees of co-operative banks fall outside the purview of Co-operative Courts under Section 91 of the Maharashtra Co-operative Societies Act, 1960. The judgment clarifies that such disputes must be adjudicated by civil courts, impacting employment litigation for co-operative bank employees.

Kerala High Court quashes criminal proceedings against bank members for availing loans outside service area, holding repayment negates criminal intent under PC Act and IPC.