Case: Ramji Shukla Vs. M.D./Chairman Canara Bank

The plaintiff had been appointed as an officer in a private bank, Laxmi Commercial Bank. The services being terminated, he filed the suit. It transpires that the Laxmi Commercial Bank had been merged now with the Canara Bank of India. The Bank in the written statement took a positive stand that the order of termination of the plaintiff does not require the prior approval of the Reserve Bank of India in terms of Section

Reasoning:
It is undoubtedly true that under the provisions of sectionB of the Regulation Act, no appointment or reappointment or termination of appointment of a chairman, a managing director or whole time director, manager, or chief executive officer by whatever name called, shall have effect unless such appointment, reappointment or termination of appointment is made with the previous approval of the Reserve Bank. Section 6 tabindex = 1>54defined in the Companies Act, 196 tabindex = 1>5