By Manish Kumar Singh, Advocate
In a legal fight between the state government of Bihar and Bihar State Cooperative Bank, judiciary sided with the latter and established once again the primacy of cooperative over state government.
The matter related to one senior IPS officer Ajay Kumar Verma who was appointed as CVO with the Bihar State Cooperative Bank about six years ago. Treating cooperative and its leaders as pariahs he is alleged to behave in a high-handed manner for several years now.
He would openly throw cooperative principles to winds. The Board members were said to have been reduced as helpless spectators.
Tired and sick of his attitude, one of the Directors Manoj Kumar Singh approached Patna High Court and the court delivered a judgment on Thursday which led to cheers among the cooperators of the state.
In the Manoj Kumar Singh Versus State of Bihar and Ors in the court of Justice Jyoti Saran, the 19 page order read that the Mr Verma’s appointment was contrary to Bihar Co-operative Societies Act, 1935. Renowned Co-operative Lawyer Mr. Ishwari Singh represented the petitioner.
High Court also noted that the Bihar State Co-operative Bank is uniquely placed and has freedom and autonomy to make its policy and recruitment etc under Section 66 B of the Bihar Co-operative Societies Act, 1935.
The petitioner accused the CVO of using 3 security guards which cost Rs 1.5 lakh to the Bank per month. The petitioner also accused him of using two vehicle and running medical bills to the tune of Rs 2.5 lakh per month.
The other charges related to interference in the Board Meeting aimed at obstructing the functioning of Bank. He would also threaten the board and some of the officials.
Notice was issued in this case. Mr Verma was made party by name. He personally appeared in the case and argued for 40 minutes. And his appointment letter was quashed. The Board members are a relieved lot as it is after 6 years that the co-operative bank would be free from the clutches of Mr. Verma as well as from the State Government.
There are 22 District Central Co-operative Banks in Bihar. Bihar State Co-operative Bank is the apex body of them. Besides the chairman, there are 16 Board of Directors who come by election and term of the Board is of 5 years from the date of election.
