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| As CCB poll campaign enters last leg, LPA filed in HC | | Govt move plays damp squib for enthusiastic contestants | | Sumit Sharma
JAMMU, Sept 15: With barely two days left for elections of Board of Directors (BoD) in Citizen’s Cooperative Bank Limited, State Government has filed LPA in the High Court today which acted as just a damp squib for the electioneering, sources said.
Sources said that the Legal Patent Appeal (LPA) was filed through Advocate Anil Sethi by Registrar Cooperative Society. Anil Sethi, Senior High Court Advocate, when contacted confirmed the report about LPA and added that he had filed LPA before the Single Bench today.
Pertinent to mention here that the said LPA means here that before taking any action, Government should be heard first or in other terms can be called as stay order whatever the verdict be but all this might play spoil sport for at least 22 persons contesting elections against 9 seats of Board of Directors for the said Bank.
Here it also need merit to mention that the elections are being held after two and half years as earlier, supersession of Board of Citizens Cooperative Bank(CCB) was passed by Registrar Cooperative Societies on 21st December, 2009.
Meanwhile, the reports of LPA has apparently retarded the enthusiasm among not only the probable running in fray but also for among their supporters who were campaigning for their candidates. Though the enthusiasm has declined but the probable's are managing their campaign with some optimism that court may grant them a respite.
Dinesh Gupta, former Chairman CCBL and contestant when contacted said that since the matter is subjudiced and he cannot comment on this but it is ample clear that Government is not in favour of democratic set up on cooperative sector.
The elections of Board of Directors (BoD) of CCB were conducted on 11th August, 2007 and nine directors were declared as Directors of the Board for a period of three years.
However, on receipt of some complaints Registrar Cooperative Societies appointed Additional Registrar Cooperatives Jammu to enquire the affairs of management. An enquiry report was submitted on 24th January, 2009 in which Registrar sought clarification from the management of the bank through its Managing Director.
The said report also revealed various acts of omission and commission relating to the functioning of the bank particularly in the matter of recovery of loan from the defaulters. The report was also conveyed to the Management of Bank on 9th June, 2009. While this report was under scrutiny, some other discrepancies were reported in the working of Bank constraining to the institution of one more enquiry. Thereafter another committee of officials was appointed by the Registrar Cooperative Societies to enquire into new areas of concern and a report was received on 9th December, 2009 revealing the Management of the Bank was engaged in the act detrimental to the interests of thousands of share holders and depositors of the Bank.
For inept consequently a show cause notice was also issued to the Bank Management seeking their response to the enquiry report filed on 9th December, 2009. Report meanwhile disclosed that for the year 2007-2008 and 2008-2009 the said Bank had suffered net loss of Rs 158.52 lakh and 287.31 lakh respectively. The inspection reports of the bank conducted by the Reserve Bank of India for the year 2007 to 2009 revealed various defaults and acts of mismanagement. The bank was also found violated credit policy framed by RBI guidelines. The inspection report of the Bank conducted by the RBI for the year 2008-2009 had showed that gross non-performing assets of the Bank estimated to the tune of Rs 3,382.28 lakh and performing assets amounting to Rs 463.68 lakh.
Upon this a show cause notice was issued to the management of the Bank on 11th December, 2009 and the management was asked to submit its reply within a period of seven days. As the Bank management is stated to have failed to show cause within the specified period, accordingly Board of the Director was superseded on 21st December, 2009 which was challenged by the Bank Management before the Special Tribunal J &K on 5th April, 2010 Special Tribunal J& K set-aside the order of Registrar Cooperative Societies. Against that order two appeals were filed in the State High Court.
Here too Justice Sunil Hali after hearing the two sides, in the 27 pages judgment observed that the contentions raised by the respondents that Registrar while superseding the Board was required to appoint the Administrator vide the same order, and said that while examining this argument, it be seen that the Act contemplates is that after supersession the management of the Bank is to be replaced by an Administrator to run the affairs of the society (CC Bank).
"The Act does not contemplate that in the order of supersession, the Administrator should also be appointed, court observed. With these observations Court allowed these petitions and set-aside the order impugned passed by the Tribunal on 5th April, 2010. The order of supersession passed by Registrar Cooperative Societies, J and K, Jammu, dated 21st December, 2009 stood restored and the Administrator appointed shall take charge of the management of the Bank forthwith.
The bank further filed case in Division Bench (DB) challenging superseding and this time ,DB set aside Court order and allow Board of Directors to work, but till then Board of Directors had completion of their tenure, i.e 3 years and Divisional Commissioner Jammu became the Chairman of CCBL. |
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