HC upholds removal of Urban Cooperative Bank CEO

21/07/2026

JAMMU, Jul 20: The High Court of Jammu & Kashmir and Ladakh has upheld the removal of the General Manager and Chief Executive Officer of Urban Cooperative Bank Limited, Anantnag, holding that the bank's Board of Management had no legal authority to extend his service beyond the statutory retirement age of 58 years.
Justice Shahzad Azeem dismissed the petition filed by Mohammad Shafi Reshi challenging orders dated February 27, February 28 and March 5, 2025, by which he was relieved from the post of GM/CEO and his retirement benefits were withheld.
The petitioner had joined the Urban Cooperative Bank, Anantnag, as an Accounts Clerk in 1987 and was elevated to the post of GM/CEO in April 2015. Under the applicable statutory service rules, he attained the age of superannuation on March 31, 2021. The bank's Board of Management, however, granted him extensions from time to time, including a three-year extension from April 1, 2023 to March 31, 2026. He was subsequently relieved in March 2025 following directions of the Registrar, Cooperative Societies, and a decision of the Board of Administrators.
The petitioner contended that he had been prematurely removed before completion of his extended tenure and that the orders were passed without affording him an opportunity of hearing. He also claimed that prior approval of the Reserve Bank of India was required before his removal. Senior Advocate AltafHaqani, assisted by Advocates ShakirHaqani and Asif Ahmad Wani, appeared for the petitioner. Government Advocate FaheemNisar Shah represented the Cooperative Department and other official respondents, while Advocate N.A. Dendru appeared for J&K Bank and Advocate Nitin Parihar represented the RBI. The respondents opposed the petition, contending that Reshi had already retired on attaining the age of 58 years and any extension granted by the bank's management was contrary to SRO 233 of 1988.
Justice Azeem observed that Rule 13 of SRO 233 of 1988 expressly provides that an employee of a cooperative society shall retire at the age of 58 years and any enhancement in the retirement age could be made only by the government through an amendment to the statutory rules. The court held that there was no provision empowering the Board of Management to grant an extension beyond the prescribed retirement age. "The extension was beyond the competence of the Board of Management and is non-est in the eyes of law," the court observed, holding that the petitioner had no legal right to continue in service after March 31, 2021.
The High Court ruled that the relieving orders could neither be termed premature nor illegal as they merely recognised the legal position that the petitioner's continuation beyond the age of 58 was without authority of law. Dealing with a preliminary objection regarding the maintainability of a writ petition against a cooperative bank, the court held that Urban Cooperative Bank, Anantnag, performs public functions by accepting deposits, advancing loans and operating under the regulatory supervision of the RBI.
The court observed that banking activities involve public money, protection of depositors and stability of the financial system. Therefore, even though the bank may not fall within the definition of "State" or an "instrumentality of the State" under Article 12 of the Constitution, it qualifies as a "person or authority" performing public duties and is amenable to writ jurisdiction under Article 226.
The court, however, clarified that disputes concerning the supersession of the elected Board of Management and appointment of the Board of Administrators relate to the constitution and management of a cooperative society and are required to be referred to the Registrar under Section 70 of the J&K Cooperative Societies Act. Finding no illegality in the petitioner's removal, Justice Azeem dismissed the writ petition along with all connected applications and vacated the interim directions.

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