Court asks a full-fledged Board to assume office at Tamilnad Mercantile Bank

The Court also asked the lender to announce its results

Justice V Ramasubramanian and Justice N Kirubakaran in their interim order said that if normalcy is to be restored in the functioning of the Tamilnad Mercantile Bank, a full-fledged Board should assume office. This is possible either by declaring the results subject to the outcome of the cases or by nominating someone to the Board. The second option is ruled out, since RBI is not agreeable to nominate anyone. They fear conflict of interest. Therefore, there is only one option, namely to declare the results and allow the elected directors to assume charge, subject to the outcome of the litigation pending in all these proceedings.

Therefore, for the present without pronouncing a final verdict on the question of validity of the votes polled by certain shareholders and without also recording a finding whether these votes have been calculated or not, we pass an order declaring the aforesaid 10 persons as having been elected.

They are permitted to take charge subject to the ultimate outcome of these proceedings.

"For the purpose of secretarial work, and for payment of dividend, the statutory time limit of 30 days shall start counting only from today. This is due to the fact, by today the period of 30 days has already expired from the date of the meeting. The declaration of results and the permission given to the elected members to assume charge are subject to final orders," said the Bench.

Following people were elected to TMB Board

1. P C G Asok Kumar
2. S Annamalai
3. B Vijayadurai
4. V V D N Vikraman
5. S R Aravind Kumar
6. A Shidambaranthan
7. B S Keshava Murthy  
8. Chitra Murali
9. P Yesuthasen
10. K Nagarajan