Supreme Court of India

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

Neutral citation
Reported as [2013] 3 S.C.R. 738
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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