State Of M.P.& Ors vs Sanjay Nagayach & Ors

The Supreme Court held that the order of supersession of the Board of Directors of the District Cooperative Central Bank Ltd. was invalid due to non-compliance with the second proviso to Section 53(1) of the Madhya Pradesh Cooperative Societies Act, 1960, which mandates prior consultation with the Reserve Bank of India. The Court affirmed the High Court's decision to set aside the supersession order, emphasizing the necessity of following statutory procedures. The appeals by the State of M.P. and a private party were dismissed, upholding the High Court's ruling.