Patna High Court
Ram Chand Ram Ram Charitra Sah Oil and Rice Mills Private Limited,versusCanara Bank Limited
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The Court directed the bank to consider the company's fresh representation and pass necessary orders within ten days.
Summary
Ram Chand Charitra Sah Oil and Rice Mills Pvt. Ltd. filed a writ petition seeking to change the signatories on its bank accounts with Canara Bank. The bank had objected because three directors, who initially opposed the change, had later resigned. The petitioner submitted a fresh representation on 5 October 2025, attaching the resignation letters and a resolution authorising three remaining directors to operate the accounts. The High Court, without examining the merits, disposed of the petition at the admission stage with the consent of both parties. It directed the bank to consider the fresh representation and pass the necessary orders within ten days of receiving the order. Consequently, the petition was closed.
Issues considered
- What is the appropriate procedure for a company to change signatories on its bank accounts after director resignations?
- Whether the bank must act on the company's fresh representation and resolution authorising new signatories.
Subjects
- bank accounts
- signatory change
- director resignation
- writ petition
- corporate governance
- banking law
- High Court
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.5177 of 2025
======================================================
Ram Chand Ram Ram Charitra Sah Oil and Rice Mills Private Limited,
through its Director Mr. Uday Shankar aged about 68 Years Male having its
Registered Address at Mahall- Delha Tekari Road, Gaya, Bihar- 823001 and
S/o Nande Kishore Prasad, R/o-M/S Mohinee Enterprises, Pali Road, P.S.
Dehri, District-Rohtas-821307.
... ... Petitioner/s
Versus
1. Canara Bank Limited through its Managing Director-Cum-Chairman, having
Office at Head Office Building, 112, J.C. Road, Bangalore, Karnataka-
560002.
2. The Regional Managing Director, Canara Bank Limited, Regional Office,
Balaji Gharan Complex, Near Asha Sinha More, AP Colony, Gaya, Bihar-
823001.
3. The Branch Manager, Canara Bank Limited, Gaya Branch Situated at Bajaja
Road, Gaya Town, Gaya, Bihar-823001
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Puneet Siddhartha, Adv.
For the Respondent/s : Mr.Rajan Ghoshrave, Adv.
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
9 18-04-2026 Without going into the merits or demerits of the case,
the present writ petition is disposed of at the stage of admission
with the consent of both the counsels.
2. Having regard to the fact that the petitioner has
already given a fresh representation on 05.10.2025 (Annexure
P/10 of the supplementary affidavit) duly enclosing the copies
of the resignation submitted by three of the Directors, who have
initially made objections for changing the signatory of the Bank
Accounts. The present writ petition is disposed of directing the
Respondent-Bank to consider the same and pass necessary
Patna High Court CWJC No.5177 of 2025(9) dt.18-04-2026
2/2
orders. The authority shall duly take into consideration the fact
that initially there were eight Directors, out of whom three have
already resigned, and the remaining five Directors passed a
resolution on 05.10.2025 authorizing Mr. Vijay Kumar, Rupesh
Kumar, and Sanjay Kumar to operate the bank accounts . The
Respondent-Bank shall take necessary call within a period of 10
days from the date of receipt of a copy of this order
3. With the above directions, the present writ petition
stands disposed of.
(A. Abhishek Reddy , J)
Bhardwaj/-
U
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