AMMINIKUTTY Vs. THIRUVALLA EAST CO-OPERATIVE BANK LTD

JUDGEMENT

(1.) The question involved in the present writ petition is whether the impugned order dtd. 9/11/2021 (Ext.P8) issued by the 2nd respondent to the petitioner suspending him from the post of CEO would be valid in law in the absence of concurrence of the Reserve Bank of India as per the provisions of Banking Regulation Act, 1949 as amended. The genesis of the case as spelled out from the pleadings and arguments are that Part V of the Banking Regulations Act, 1949 was though made applicable to the Co- operative Societies subject to the modification, but a non- obstante clause vide notification No.39/2020 was inserted with effect from 1/4/2021 making it clear that the provisions of the Act particularly Part II-A prescribing the control of the RBI over the management and its power as envisaged under Sec. 36AA to remove Chairman, Director or Chief Executive Officer (CEO) or other Officers or Employees, vest only with RBI.

(2.) The facts in brief are that the petitioner on 22/7/2021 was appointed as Chief Executive Officer (CEO) of the respondent- Thiruvalla East Co-operative Bank for a period of two years effective from 1/8/2021. On cessation of the tenure of the Board of Management on 4/11/2021, respondent No.2 was appointed as Part-time Administrator vide order dtd. 3/11/2021 (Ext.P4).

(3.) Petitioner received a communication dtd. 5/11/2021 Ext.P5 from the 2nd respondent pertaining to two employees and senior clerks in respect of their working ie., handing over the keys as well as of not arranging staff, on the basis of some complaint alleged to have been made by the staffs.