Excelsior Correspondent
SRINAGAR, May 16: The High Court has held that the Government has powers to make an interim arrangement of Chairman J&K Cooperative Bank Ltd in absence of its Board of Directors (BoD) and dismissed the application seeking stay of such interim arrangement.
Justice Sanjay Dhar refused to stay the Government order dated 15.4.2026 whereby an interim arrangement was made for appointment of Chairman of the Bank.
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The petitioner-Mohammad Latief Dar, a full time employee borne on the establishment of the Bank, was earlier appointed as Chief Executive Officer-cum-Managing Director of the respondent Bank but later was attached to the office of Divisional Commissioner, Kashmir, challenged the interim arrangement of the new incumbent on the ground that there is no Board of Directors of J&K Cooperative Bank in place as the nominated Board of Directors has outlived its life and elections for constitution of the Board of Directors/Management in accordance with the provisions of the J&K Cooperative Societies Act, 1989, have not been held so far.
The petitioner contended that in these circumstances, the Government of Union Territory of Jammu and Kashmir does not have authority or competence to issue any order with respect to the affairs of the respondent Bank including the appointment of Managing Director.
He along with the main plea also filed an application seeking stay of operation of the impugned order bearing Government Order No.7-JK(Coop) of 2026 dated 15.04.2026 which came to be decided by the court leaving the main plea alive and issuing notice to the Government for filing of reply.
“Accordingly, while admitting the main writ petition to hearing, the present application for grant of interim relief is dismissed. In the main writ petition, post admission notice be issued to the respondents. Faheem Nissar Shah, GA, accepts notice on behalf of respondent No.1. Notice be issued to other respondents. Counter affidavits shall be filed by the respondents by or before the next date of hearing”, the court said.
The court while holding the appointment of Chairman of the Bank valid said, the Government is vested with jurisdiction of supervision and control over a Cooperative Credit Structure Society and in that capacity the Government has the power to make an interim arrangement for discharging the functions of a Managing Director of the respondent Bank.
“In these circumstances, the Government, in exercise of its power of supervision and control, prima facie, was well within its jurisdiction to make an interim arrangement to take care of the sensitive functions that are to be discharged by a Managing Director”, read the judgment.
The court said that the scope of power of supervision and control of the Government over a Cooperative Credit Structure Society is required to be considered and determined at the time of final disposal of this writ petition. Thus, an important question of law does arise in this writ petition for determination.
“A larger issue with regard to interpretation of Section 32A of the J&K Cooperative Societies Act, however, does arise for consideration in this case. The said provision has to be read in consonance with the other provisions of the J&K Cooperative Societies Act”, the judgment said.
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