Supreme Court of India

State of M.P. and Others v. Sanjay Nagayach and Others

Neutral citation
Bench K.S. Radhakrishnan and Dipak Misra JJ.
Decided 16 May 2013

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We are of the view that the order of supersession F dated 30.9.2011 is not only in clear violation of the second proviso to Section 53(1) of the Act, but also the allegations raised in the show-cause-notice are deficiencies mostly relating to systems and procedures and are of general nature and not grave enough to overthrow a democratically elected Board of G Directors.

Judgment, page 26

From the headnote

Madhya Pradesh Co-operative Societies Act, 1960: s.31(1), second and third provisos and s.31(2) read with s.49(7 )(i), proviso - Supersession of Board of Directors of District Co-operative Bank - Without prior consultation with RBI ..:.. Held: When an authority invested with the power purports to act on its own but in substance the power is exercised by external guidance or pressure, it would amount to non-exercise of power, statutorily vested - In the instant case, there is sufficient evidence to conclude that Joint Registrar was acting under extraneous influence and under dictation - Order…

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