WPMS/1665/2021
2021 Latest Caselaw 3258 UK

                      Office Notes,
                   reports, orders or
SL.                 proceedings or
         Date                                     COURT'S OR JUDGES'S ORDERS
No                   directions and
                   Registrar's order
                    with Signatures
      24.08.2021                        WPMS No. 1665 of 2021
                                        Hon'ble Narayan Singh Dhanik, J.

Hon'ble Alok Kumar Verma, J.

Heard Mr. Devadatt Kamat, learned Senior Advocate, assisted by Ms. Pooja Tiwari, learned counsel for the petitioner, Mr. V.K. Kaparwan and Mr. Azmeen Sheikh, learned counsel for the respondent no.1 and Mr. J. C. Pandey, Standing Counsel for the State/respondent no.4.

The respondent nos. 1 & 4 requested four weeks' time to file counter affidavits.

Issue notices to the respondent nos. 2 & 3. Dasti notices also be issued. Steps to be taken forthwith.

List this case on 17.09.2021. Mr. Devadatt Kamat, the learned Senior Advocate, submitted that the petitioner Urban Cooperative Bank has been registered under the provisions of the Uttar Pradesh Cooperative Societies Act and recruitment, terms and conditions of service of its employees fall under Entry 32 in List-II-State List of the Seventh Schedule of the Constitution of India, whereas "Banking" comes under Entry 45 in List- I of the Seventh Schedule. Therefore, the Reserve Bank of India has no power to direct the petitioner by the impugned letter dated 26.07.2021, for initiating the process of appointment of new C.E.O.

In support of the said submissions, the learned Senior Advocate relied upon the judgment of the Constitution Bench in Pandurang Ganpati Chaugule vs Vishwasrao Patil Murgud Sahakari Bank Limited, (2020) 9 SCC 215 and Union Of India vs Rajendra N Shah and another, 2021 SCC OnLine S.C.

474. In the facts and circumstances of the case, the effect and operation of the impugned letter dated 26.07.2021, issued by the Reserve Bank of India to the petitioner, is hereby stayed till the next date of listing.

Interim relief application (IA 1 of 2021) stands disposed of accordingly.

It is clarified that this interim order shall not be extended on the demand of the petitioner after counter affidavits are filed.

Let a certified copy of this order be supplied to the learned counsel for the parties, today itself, on the payment of usual charges.

(Alok Kumar Verma, J.) (Narayan Singh Dhanik, J.) 24.08.2021 24.08.2021

Mamta/Pant