CHANDRIKA JHA vs STATE OF BIHAR & ORS.

The Supreme Court held that the Chief Minister's directive to the Registrar to extend the term of the Board of Directors of the District Co-operative Bank was invalid as it usurped the statutory powers conferred under Bye-law 29 of the Bihar Co-operative Society Rules, 1959. The Court emphasized that the Registrar alone has the authority to manage the nominations and reconstitution of the Board, and any interference by the Chief Minister or Minister-in-charge is impermissible under Article 154(1) of the Constitution. Consequently, the Court upheld the order reconstituting the Board as lawful and dismissed the appellant's writ petition.