Maaging Director Chhattisgarh State Co-Operative Maryadit Vs Zila Sahkari Kendriya Bank Maryadit & Ors. (Supreme Court of India)
Material Facts
The appeal arose from a judgment of the Division Bench of the High Court of Chhattisgarh dated 7 August 2018, which had set aside the judgment of the Single Judge dated 19 January 2018. The dispute concerned the appointment of the Chief Executive Officer (CEO) of a District Central Cooperative Bank. After the existing CEO was arrested and suspended, an interim CEO was appointed by the Chairperson of the Bank. Subsequently, the appellant Apex Cooperative Bank appointed another officer as CEO, relying upon Section 54(3) of the Chhattisgarh Co-Operative Societies Act, 1960. The Board of Directors (BoD) later approved the interim CEO, challenged the appellant’s appointment before the High Court, sought clarification from the Registrar, and thereafter accepted the appellant’s appointee following the Registrar’s communication.
Procedural History
The Single Judge upheld the appointment made by the appellant, holding that it was valid under Section 54(3) and had also been ratified by the Registrar and accepted by the BoD. The Division Bench reversed that decision, holding that after the 2016 amendment, the appellant had no authority to appoint the CEO and that such power could be exercised only by the Registrar upon failure of the Cooperative Bank to make an appointment within the prescribed period. The appellant challenged the Division Bench judgment before the Supreme Court.
