UCO BANK Vs. SAUMYENDRA ROY CHOUDHURY AND ORS.
LAWS(SC)-2016-5-35
SUPREME COURT OF INDIA
Decided on May 05,2016

UCO BANK Appellant
VERSUS
Saumyendra Roy Choudhury And Ors. Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) The matter arises out of a decision by the nomination committee set up under an RBI Circular dated 24th May, 2013, in which it has decided, having regard to the fact that the respondent no.1 before us is over aged, i.e. above 65 years, and the fact that he has already served for a period of two terms as Director of the Appellant Bank is disqualified therefore from standing for any further election as Director of the said Bank.
(3.) The said decision was challenged before the High Court in Civil Suit No. 212 of 2013. By an interim order dated 29th November, 2013, the learned trial Judge allowed the interim prayer of the respondent no.1 before us, namely, Prayer (e), by which an interim mandatory injunction was ordered to deem the said Director as having been elected as a shareholder director notwithstanding the impugned order dated 24th May, 2013. This was for the reason that prima facie the learned Single Judge held that the Government of India Guidelines dated 10th December, 2007, which alone contained the twin disqualifications of being above age as well as having stood for election as a Director twice, could not apply to persons who are elected Directors as opposed to non-official Directors, who are only the Directors nominated under a Statutory Scheme under Section 9(3) of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. It was further held that the RBI Guidelines dated 1st November, 2007, issued pursuant to the Statutory Power contained in Section 9 (3AA) of the said Act, alone governed the facts of these cases, and that no other criteria de hors the criteria in these guidelines could possibly be taken into account.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.