STATE OF M.P. vs SANJAY NAGAYACH .

The Supreme Court ruled 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 upheld the High Court's decision to set aside the supersession order, emphasizing that the statutory requirement was not met. Consequently, the appeals by the State of M.P. were dismissed, affirming the protection of the Board's rights under the Act.