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Cooperative Bank irregularity

State Government had advised RCS on 21.08.2014 to extend service of Tusar Kanti Panda MD OSCB without examining his past antecedents in absence of any proposal of Management of OSCB in this regard and without any recommendation of RCS basing on a purported proposal of IIT Kharagpur is mislading and abuse of power. Subsequent clarification to RCS on the matter that the Government instruction to extend service period of Tusar Kanti Panda MD, OSCB seems to have been issued under provisions of sec 123 A though not explicitly expressed in the Government instruction is bad, null & void and not enforceable.It has been held by hon’ble Supreme Court that no higher authority in the heirarchy can direct the statutory authority to act in a particular manner (SCC pp. 596-97, paras 59, 60 & 62-63).The Hon’ble Supreme Court had observed in K.K. Bhalla v. State of M.P. (2006)3 SCC 581 “xxxxxxxc Therefore, the law on the question can be summarised to the effect that no higher authority in the hierarchy or an appellate or revisional authority can exercise the power of the statutory authority nor can the superior authority mortgage its wisdom and direct the statutory authority to act in a particular manner. If the appellate or revisional authority takes upon itself the task of the statutory authority and passes an order, it remains unenforceable for the reason that it cannot be termed to be an order passed under the Act. xxxxxxx”. (page 19, point 23 of attachment-2). RCS being a statutory authority acted as ” His Master’s Voice”  and extended service of Tusar Kanti Panda MD, OSCB from 60 yrs to 62 yrs vide his order No.14866 Dt.21.08.2014 on the same day without application of mind being guided by Government instruction in letter No.6715 Dt.21.08.2014. violating the principle laid down by the Hon’ble Supreme Court. In civil  appeal No.4691 OF 2013 (arising out of SLP (C) No. 6860 of 2012)State of M.P. and Others Versus Sanjay Nagayach and Others the Hon’ble Supreme Court has observed “xxxxxxx Statutory functionaries like Registrar/Joint Registrar of Cooperative Societies functioning under the respective Cooperative Act must be above suspicion and function independently without external pressure. When an authority invested with the power purports to act on its own but in substance the power is exercised by external guidance or pressure, it would amount to non-exercise of power, statutorily vested.
A statutory authority shall not act with pre-conceived notion and shall not speak his masters’ voice, because the formation of opinion must be his own, not somebody else in power, to achieve some ulterior motive. There may be situations where the Registrar/Joint Registrar are expected to act in the best interest of the society and its members, but in such situations, they have to act bona fide and within the four corners of the Statute. In our view, the impugned order will not fall in that category. xxxxxxx”
The relevant portion of the two Supreme Court decisions attached herewith.(Pg 29-30)Supreme Court judgement on Panna DCCB   TKP extn RCS & Govt approval

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