BALDVEV SINGH GAJNEJA Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The Board of Directors of the Ferozepur Central Co-operative Bank Ltd., Ferozepur (hereafter the Bank), in the meeting held on 3rd November, 1977 (Annexure P-3) passed the following resolution :

(2.) The learned counsel for the petitioner has argued that no valid meeting of the Board of Directors of the Bank was held on April 6, 1978. The note of dissent of the nominated Directors purporting to have been recorded in that meeting is infructuous. The impugned order of the Government Annexure P 2 upholding the dissent of the nominated Directors is liable to be set aside on this ground. The contention is without merit.

(3.) In the written statement filed by the Chief Executive Officer of the Bank, it has been averred that the meeting of the Board of Directors was held on April 6, 1978. The Directors discussed the first item and then the second item relating to confirmation of the proceedings of the meetings of the Executive Committee held on November 28, 1977, December 23, 1977 and January 30, 1978 came up for discussion. The nominated Directors dissented opining that the said proceedings should not be confirmed. The elected Directors left the meeting when they found that the nominated Directors did not wish to confirm the proceedings of the meetings of the Executive Committee. It was denied that none of the elected members had attended the meeting of the Board of Directors fixed for April 6, 1978. The names of the Directors who attended the meeting were recorded in the proceedings (P 13) relating to that meeting. The dissenting note was recorded in the presence of the Directors. Apart from the averments made in the written statement of the Chief Executive Officer, the proceedings (Annexure P 13) of the meeting of the Board of Directors held on April 6, 1978 were recorded wherein the presence of the seven elected Directors and 2 nominated Directors has been shown. It is, therefore, difficult to hold that no valid meeting of the Board of Directors was held on April 6, 1972.