PANJIM: The North Goa District Court has set aside the election of Shubhalaxmi Pai as a member of the Board of Directors of the Goa Urban Co-operative Bank Ltd declaring it as null and void.
North District Judge Sherin Paul in an order issued last week has declared that nomination and election of Pai to the post of director as null and void on the grounds of conflict of interest.
One Pramod Pai Dhungat had challenged the nomination and election of Pai as the director to the Board of Directors of Goa Urban Co-operative bank ltd, stating that the respondent is on the panel of advocates of the bank and there could be conflict of interest, which would arise, as the respondent in her capacity as an advocate would prepare legal scrutiny reports and in a capacity as Director would be passing loans at Board meetings.
The petitioner claimed that the election of Pai as Director is illegal and improper as it violates Section 60 (1) (e) and (f) of the Goa Co-Operatives Act and by-laws No 31 (b).
However, the respondent claimed that she is neither an employee nor does she hold any office of profit and that she does not accept any professional work from the Bank and therefore the question of conflict of interest does not arise.
Passing the order, the Court referred to the Supreme Court observation in Mahadeo vs Shantibai stated that it is manifest that a lawyer who is on the panel of lawyers, holds an office of profit and hence the contention of the respondent cannot be accepted.
The Court also observed possibility of conflict of interest.
