Parvez Ahmad, the former Chairman & CEO of J&K Bank Ltd. has challenged his termination as CEO and 'deemed retirement' from the services of the J&K bank. The Petition was filed in the High Court of J&K and the court has issued notice in the matter returnable on 16th March 2020. The Court will first deal with the issue of maintainability of Writ against the J&K Bank.
Parvez Ahmad being the CEO/MD of J&K Bank was removed as the Chairman vide Notification of the State Government on 8th of June 2019. Shortly thereafter, the Bank also issued him a communication on 9th of July 2019, informing him that he was 'deemed' to have retired from the services of the Bank on the date he assumed office as the Chairman & CEO of the Bank.
Parvez in his petition, that is drawn and filed by Manisha Chaudhary & Shariq Reyaz of UKCA and Partners, has assailed his removal as Chairman as well as his termination from services on account of deemed retirement. It is pleaded therein that principles of natural justice were manifestly violated as no notice was issued to Parvez before his removal as Chairman & CEO.
The Banking Regulation Act was also flouted as no approval from the RBI was taken. It is also pleaded that the concept of 'deemed retirement' is wholly inapplicable in case of the Chairman who is appointed from within the serving cadre of bank. The shares of J&K Bank that were being traded at INR 60 per share have now plummeted to as low as INR 18 per share.
UKCA and Partners ("UKCA") has been eminent in providing legal advisory services to its clients in diverse areas including Merger and Acquisitions ("M&A"), Company Law Litigation, Insolvency and Bankruptcy Laws, Corporate Law, Business and Financial Transactions, Real Estate Law and General Advisory and Advocacy Services to individuals and business enterprises; of all descriptions, within and beyond India for over 25 years. The firm provides a whole range of legal services including hearings at courts, client briefings and conferences, opinion writing and guidance, agreement and contract drafting, research work and several other related activities. The firm maintains its head offices in New Delhi, with satellite office in Chandigarh and associate offices in other major metropolitan Indian cities.
Click here to download the Petition and Order