The Calcutta High Court has dismissed a petition challenging the inclusion of a tenure-restriction clause in the nomination form for the board elections of Santragachi Co-operative Bank Ltd. The clause disqualifies individuals who have served as directors for two consecutive terms or a total of ten continuous years from contesting again.
The petitioners argued that the restriction, derived from Section 10A(2A)(i) of the Banking Regulation Act, 1949, should not apply to a state-registered co-operative society and was therefore arbitrary. The Court, however, observed that the amendments made to the Act in 2020 and further refined in 2025 explicitly make Section 10A applicable to co-operative banks, including a provision prohibiting directors from holding office for more than ten consecutive years. It further clarified that two successive five-year terms constitute ten continuous years under the law.
Emphasizing that co-operative societies fall under the State List but the banking activities they undertake fall under the Union List, the Court held that the central amendments were fully valid and enforceable.
It concluded that the tenure cap promotes “sound banking” and better governance, upheld Clause “C” of the nomination form, and dismissed the petition. The Court also directed that the elections proceed strictly as per the previously notified schedule.
It bears recalling that a petition before the Bombay High Court’s Kolhapur Circuit Bench also came up for hearing on December 5. The division bench of Justices M. S. Karnik and Ajit B. Kadethankar heard Senior Advocate Girish Godbole for the petitioners, along with other appearing counsel representing the parties.
The Court heard the petitioners specifically on the question of interim relief. Observing that arguable issues had been raised, the bench issued Rule and granted one week’s time to file affidavits-in-reply, followed by another week for rejoinders. The judges also noted that they would make an endeavour to hear the writ petition finally at the earliest once the pleadings are complete.
The matter has been posted for consideration of interim relief on December 9, 2025.