In Brief
The Supreme Court held that a District Central Cooperative Bank falling under Section 49-E(2) of the Chhattisgarh Co-Operative Societies Act must appoint its Chief Executive Officer from the cadre maintained by the apex State Cooperative Bank, if such a cadre has been notified. Although the 2016 Amendment inserted special provisions (clauses a and b of Section 54(3)) allowing Cooperative Banks to appoint CEOs meeting RBI eligibility criteria, these provisions do not override the State Government's regulatory control through notifications requiring cadre appointments. The Court applied harmonious construction principles to reconcile the apparently conflicting provisions, holding that the apex body retains a role in providing a panel of eligible officers from which the Central Bank must select, preserving state oversight of public funds while respecting the RBI eligibility requirements."
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