MANAGING DIRECTOR CHHATTISGARH STATE CO OPERATIVE BANK MARYADIT vs ZILA SAHKARI KENDRIYA BANK MARYADIT

The Supreme Court upheld the decision of the Chhattisgarh High Court, which had set aside the appointment of the sixth respondent as CEO of the District Central Cooperative Bank, made by the Chhattisgarh State Cooperative Bank. The Court found that the appointment was made without lawful authority, as the power to appoint the CEO lies solely with the Board of Directors of the bank under the Chhattisgarh Co-Operative Societies Act, 1960, specifically Section 54(3). The Court affirmed that the Registrar's ratification did not confer authority to the appellant, thus maintaining the High Court's ruling.