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2021 (9) TMI 1440 - HC - Indian LawsPrayer for an interim order directing the Bank to place their candidature for directorship of the Bank in the ensuing Annual General Meeting of the Bank - alternatively seeking direction to the Bank to refrain from conducting the Annual General Meeting scheduled on 29.09.2021 - HELD THAT:- With regard to the case of the petitioners that the Bank is statutorily obliged under Section 160 of the Act to place the notice of the petitioners before the General Meeting, it was pointed out by the learned counsel that the same is only a regulatory provision and an alleged breach of such a regulatory provision is not sufficient to invoke the writ jurisdiction of this Court under Article 226 of the Constitution. The fact that the Board has refused to place the notices given by the petitioners under Section 160 of the Act in the Annual General Meeting scheduled on 29.9.2021 is not in dispute. In other words, the writ petitions are instituted for enforcing a statutory obligation of the Bank. That apart, the Bank is a listed company engaged in banking business. It is a scheduled bank regulated by the Reserve Bank. The materials on record indicate that the Bank has had a chequered history on the governance issues, forcing the Reserve Bank to intervene at regular intervals; that there are adverse reports concerning the functioning of the Board and Committees of the Bank, especially as regards lack of transparency in the selection of Directors by the NRC; that having found that the Bank is functioning with a minuscule number of Directors, the Bank has been directed by the Reserve Bank, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949 to expedite and complete the process of appointment of Directors and that the Bank has, for some or other reasons, not complied with the said direction of the Reserve Bank. The writ petitions are instituted for enforcing obligations of public nature as well - it is deemed appropriate to pass an interim order directing the Bank to refrain from concluding the Annual General Meeting scheduled for today - application disposed off.
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