T S ARUMUGHAM Vs. LAKSHMI VILAS BANK LTD

JUDGEMENT

(1.) LAKSHMI Vilas Bank, the first respondent herein is a company, incorporated under the Indian Companions Act on November 3, 1926. The affairs of the company are entrusted with the board of directors of the company. The articles of association of the said bank, at the time of incorporation, provided that the board of directors of the said bank shall consist of not less than seven and not more than eleven members. The first respondent-bank is also governed by the provisions of the Banking Regulation Act, 1949 (hereinafter referred to as "the Act" ).

(2.) SUB-SECTION (2) of section 10a of the Act provides that not less than fifty-one per cent. of the total numbers of the board of directors of a banking company shall consist of persons, who -

(3.) THE proviso to the said section provides that out of the aforesaid number of directors, not less than two shall be persons having special knowledge or practical experience in respect of agriculture and rural economy, co-operation or small-scale industry, and shall not -