Patna High Court

Sanjay YadavversusThe State of Bihar

Decided: 24 March 2026
Disposal: DISPOSED
Bench: ANSHUMAN

Holding

The court held that the bank’s action was in accordance with Clause 34 of the memorandum of agreement and therefore the petition could not be entertained.

Summary

Petitioner Sanjay Yadav, a clerk at Gopalganj Central Co-operative Bank, filed a writ petition seeking to set aside an order (Letter No.301 dated 10.10.2023) issued by the bank's Managing Director, alleging that the bank manager had fraudulently transferred bank funds using his password, forcing him to liquidate personal assets. The bank contended that the petitioner was not its employee but was engaged through a service provider, PENTA IT, and that the action was taken under Clause 34 of the memorandum of agreement between the bank and the agency. The court examined the memorandum and found that the bank’s action was fully authorized by the contractual clause. Consequently, the court declined to interfere with the bank’s decision, directing the petitioner to approach the Registrar of the Co-operative Bank for any relief. The petition was dismissed.

Issues considered

Whether the Managing Director's order, issued under Clause 34 of the memorandum of agreement, can be set aside by a writ petition.
Whether the petitioner is an employee of the bank or of the service‑provider agency, affecting the bank’s right to act.
Whether the court can intervene in contractual matters between a co‑operative bank and its service provider.

Subjects

writ petition
co‑operative bank
service provider agreement
employee status
fraud
Clause 34
jurisdiction
setting aside order

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.4165 of 2026
     ======================================================
     Sanjay Yadav S/o Sri Mahesh Yadav, Resident of Village- Neuri, P.S.- Kateya,
     District- Gopalganj presently a Clerk without posting (Employee) of
     Gopalganj Central co-operative Bank Ltd., Gopalganj while Posted at Branch
     Bhore, Gopalganj.

                                                                  ... ... Petitioner/s
                                        Versus

1.   The State of Bihar
2.   Joint Registrar, Central Co-operative Bank, Chapra.
3.   The Managing Director, Central Co-Operative Bank, Gopalganj.
4.   The Board of Directors, Central Co-operative Bank, Gopalganj.
5.   The Branch Manager, Central Co-operative Bank, Bhore.
6.   The Central Co-operative Bank, through its Registrar, Gopalganj.
7.   The State of Bihar, through Principal Secretary, Co-operative Dept.,

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :       Mr. Sanjay Kumar
     For the Respondent/s   :       Mr. Additional Advocate General (4)
     For respondent Nos.3 & 4:      Mr. Prashant Kumar, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE DR. ANSHUMAN
     ORAL JUDGMENT
     Date : 24-03-2026


                          Heard learned Counsel for the petitioner, learned

      Counsel for the Central Co-operative Bank and learned Counsel

      for the State.

                          2. The present writ petition has been filed for

      setting aside the order contained in letter No.301 (Estab.) dated

      10.10.2023 passed by Managing Director, Central Co-operative

      Bank, Gopalganj.

                          3. Learned Counsel for the petitioner submits
Patna High Court CWJC No.4165 of 2026 dt.24-03-2026
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         that the petitioner is working in the Central Co-operative Bank,

         Gopalganj, and it is the Manager of the Bank, who had

         committed fraud, he has transferred money of the Bank in the

         account of his wife,             though using the password of the

         petitioner. It is due to this reason the petitioner has paid money

         in the Bank selling his land and jewellary of his wife. Counsel

         further submits that this order is unnecessary and be set aside.

         The respondent Co-operative Bank be directed not to take any

         action against him.

                            4. Learned Counsel for the Co-operative Bank,

         on the other hand, submits that the petitioner is not the

         employee of the Bank; rather he is employee of the Service

         Provider Agency, namely, PENTA IT. He submits that whatever

         be the action taken by the Managing Director, it has taken in the

         light of the memorandum of agreement taken place between

         Bank and the Agency and the service provider agency PENTA

         IT.

                            5. After hearing the parties and upon perusal of

         the impugned order, it become crystal clear that the respondent

         Bank has taken action in the light of clause mentioned in the

         memorandum of agreement. According to which, it transpires to

         this Court that petitioner is the person of the service provider
             Patna High Court CWJC No.4165 of 2026 dt.24-03-2026
                                                        3/3




                      agency and action has been taken completely in accordance with

                      Clause 34. As such, this Court is not inclined to interfere in this

                      matter. However, petitioner shall be at liberty to move before the

                      Registrar, Co-operative Bank for his protection.




                                                                   (Dr. Anshuman, J)
      Mkr./-
AFR/NAFR                NAFR
CAV DATE                NA
Uploading Date          26.03.2026
Transmission Date

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