The Punjab and Haryana high court (HC) has stayed the recruitment of 124 posts in the Chandigarh State Cooperative Bank until further orders.
The directions came from the bench of justice Sandeep Moudgil on a plea from the bank’s former chairman and current director
Satinder Pal Singh Sidhu, current vice-chairman Surjit Singh Dhillon, director Bhupinder Singh Badheri, director Jeet Singh Behlana and director Bal Krishan Budhail.
The petition had alleged that rules were flouted to carry out direct regular recruitment on various posts and make several other decisions at the bank.
The bank had called a meeting of the Board of Directors on August 7. According to the rules, the agenda of the meeting is required to be sent to all board members and directors 15 days in advance, but bank officials failed to deliver the agenda on time, the petition had claimed.
The five directors opposed the recruitment and other decisions being made in violation of the rules, but a section of the board of directors still passed all the resolutions, it was further alleged.
The court on September 3 stayed various decisions made by the board on August 7. With fresh allegations that the September 3 order is being misinterpreted and some of the decisions are being implemented, the court passed a fresh order on September 9, “The last order (Sept 3 order) clearly raised two issues for consideration, namely, whether the board of directors is competent under the bylaws to consider each and every agenda item and, thereafter, whether such decision of the board was duly approved and prior sanction was obtained from the registrar, as envisaged under Rules 80(1) and 80(1)(i) of the Punjab Cooperative Societies Rules, 1963, before issuance of the letter dated August 24,” the court noted.
{{/usCountry}}The court on September 3 stayed various decisions made by the board on August 7. With fresh allegations that the September 3 order is being misinterpreted and some of the decisions are being implemented, the court passed a fresh order on September 9, “The last order (Sept 3 order) clearly raised two issues for consideration, namely, whether the board of directors is competent under the bylaws to consider each and every agenda item and, thereafter, whether such decision of the board was duly approved and prior sanction was obtained from the registrar, as envisaged under Rules 80(1) and 80(1)(i) of the Punjab Cooperative Societies Rules, 1963, before issuance of the letter dated August 24,” the court noted.
{{/usCountry}}“In fact, the intent of the order was not limited merely to Resolution/Agenda Item No 9, but extended to the meeting as a whole, particularly when the competency of the board of directors and the requirement of approval/prior sanction of the registrar were specifically questioned by this court. Accordingly, further proceedings pursuant to the meeting of the board of directors already held on August 7 shall remain stayed till the next date of hearing,” the court ordered, fixing the next date of hearing on October 6 and seeking a response from the bank.