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HC Dismisses Former J&K Bank Chairman Statement Against Rescission | India News

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SRINAGAR: On Wednesday, the Jammu and Kashmir high court dismissed a petition filed by Pervaiz Ahmad Negroo, challenging his dismissal as president and managing director (CMD) of J&K Bank last year.
Negroo had challenged a communication from the government on June 8 last year to the company secretary of J&K Bank Limited, in which he conveyed the decision that he would cease to be the bank’s CMD. By the same communication, the government had appointed RK Chibber as director of the bank’s board of directors and appointed him as interim CMD of the bank. The government had made the decision to expel Negroo following allegations of corruption against him.
Negroo had alleged that the communications, orders and actions of the government are arbitrary, illegal and completely ignore the Banking Regulation Law, the Bank’s Bylaws and the Bank’s Service Manual. Negroo submitted that termination of the “tenure position” required mandatory prior approval from the RBI.
“… The appointment of the petitioner (Negroo) as director of the board of directors and his appointment as president and CEO of the bank was contractual in nature and is not governed by any statute or the conditions of service normally applicable to bank employees,” said one bench of Judge Ali Mohammad Magrey.
“This petition is rejected for not being upheld before this court, leaving the petitioner free to go to the civil court to request the fulfillment of his contractual relationship and / or the repair of his contractual disputes with the bank,” said the court.

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