HC upholds removal of Nengroo as Chairman J&K Bank

Excelsior Correspondent

SRINAGAR, Nov 1: The High Court today dismissed the plea of former Chairman Jammu & Kashmir Bank Ltd Parvaiz Ahmad Nengroo seeking setting aside of a decision of Government for ousting him as Chairman cum-Chief Executive Officer (CEO) of the bank.
The Division Bench of Chief Justice N Kotiswar Singh and Justice M A Chowdhary in an elaborated judgment upheld the writ court verdict whereby ousting of Nengroo by the Government was held to be legal and tenable.
Court had recorded that the nomination of Nengroo as Director on the Board and his appointment as Chairman-cum-Chief Executive Officer of the Bank was contractual in nature and not governed by any Statute or the service conditions ordinarily applicable to the employees of the Bank.
The DB recorded that the Single Judge has decided the matter perfectly in consonance with law after a threadbare discussion on all aspects of the case and has rightly held that the appointment of the appellant-Nengroo as Chairman and CEO of the Bank was contractual in its nature and, as such, there being no applicability of the service law, a writ is not maintainable to the extent of determining his removal as Government nominee Director, Chairman/CEO of the respondent J&K Bank.
The DB said the continuance of appellant from a career level post to board level post is not being amenable to writ jurisdiction, is not maintainable and that no case is made out by him which warrants any interference in the impugned judgment passed by the writ court as such the same is upheld. “As a consequence, the appeal is dismissed along with all connected applications. Interim direction, if any, shall stand vacated”, the bench concluded.
The court was told that he had applied for grant of pensionary benefits soon after he was removed. “The appellant/petitioner has thus almost reconciled to what has been decided by the Government of J&K and the management of the J&K Bank”, read the judgment.
The bench dismissed the appeal of Nengroo by recording that the same is not maintainable before this court.
On challenging the decision of the Government whereby he has been ousted from the post of Chairman cum-Chief Executive Officer of the Bank, court said the remedy available to the petitioner lies in the civil court.
The case of the petitioner-Nengroo before the Court is that even when he was nominated as Government Director on the Board and was appointed as Chairman-cum-Chief Executive Officer of the Bank, he continued to be in service of the Bank unabated and uninterrupted and, therefore, continued to be governed by the service conditions of the Bank, and that since the Bank, being an instrumentality of the State, is amenable to the writ jurisdiction of this Court as such challenging communication dated 09.07.2019, which conveyed to him that he is deemed to have retired from the service of the Bank with effect from 06.10.2016, is maintainable.
In that context, while referring the Rules said, the petitioner is deemed to have retired from the Service of the Bank with effect from 06.10.2016, therefore, his tenure as being the Chairman & CEO of the Bank is not governed by the Service Rules of the Bank.
“Consequently, any dispute sought to be raised by him in relation thereto, including challenge to communication dated 09.07.2019, cannot be gone into by this Court in its writ jurisdiction. In that view, this writ petition to that extent as well is not maintainable”, read the judgment.
So far as the prayer of Nengroo for a direction to the respondents for release of all perquisites and benefits due and payable to him in law is concerned, court said, it is admitted that he was in the service of the Bank till 06.10.2016, the date he was deemed to have retired from the service of the Bank.
The bench said, this Court could make a direction that in the event he is eligible to pensionary benefits under the Pension Regulations in question in lieu of his service till 06.10.2016 and he applies in accordance therewith for grant of such pensionary benefits, the Bank authorities shall consider the case of the petitioner in accordance with the applicable rules and pass appropriate orders.
Nengroo was appointed as Chairman & Chief Executive Officer (CEO) of the Bank for a period of three years with effect from 06.10.2016 on the terms and conditions enumerated in annexure to the RBI’s letter.