In Brief
The Supreme Court resolved a dispute over the power to appoint the CEO of a District Central Cooperative Bank. The bank is governed by the Co-Operative Societies Act, 1960, with provisions for appointment from cadres maintained by the apex body (State Cooperative Bank). The 2016 Amendment inserted special provisions giving Cooperative Banks the power to appoint their own CEO subject to eligibility criteria. The Court held that while Cooperative Banks ordinarily have this power, where a bank is a Central Society receiving state funding, it must appoint its CEO from a panel provided by the Apex Society, ensuring state regulatory control whilst respecting the bank's selection role. The Court upheld the appointment challenged by the lower bench.
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