Kerala HC rejects plea against LKB merger with Centurion Bank

Kochi, Aug 22 (UNI) The Kerala high court today dismissed a petition challenging the amalagamation of Lord Krishna Bank with Centurion Bank of Punjab.

The petitioner, Umesh Kumar Pai from Kochi, who is a minority shareholder of the Lord Krishna Bank had sought a direction to the Central Governement to appoint an inspector to investigate into the affairs of the Bank.

Justice M N Krishnan, dismissing the petition, observed that banking regulations provide for internal management and also for inspection and action and the Reserve Bank of India was the expert body to consider the question of amalagamation as well.

''It has to be held that even in the case of an investigation the central governement may have to resort to the help of the RBI and as the RBI is directly concerned with the bank I feel that the court need not exercise its power to direct the Central Government to order an invetigation." The petitioner had contended that Lord Krishna bank conducted its annual general body meeting on September 30, 2006, at Ernakulam, in a highly arbitrary and high handed manner and most of the shareholders were prevented from participating in the meeting by the directors using police.

The petitioner also contended that the agenda of the AGM was the amalagamation of the LKB with the Centurion Bank.

The guidelines issued by the Reserve bank of India were not at all observed by the Lord Krishna Bank, the petitioner alleged.

UNI