Caretaker Board Permitted to Conduct Day-to-Day Administration Pending Delayed Cooperative Bank Elections

The Petitioner, Jamia Cooperative Bank Limited, moved the High Court seeking a writ of mandamus to compel the Registrar of Cooperative Societies (RCS) to appoint a Returning Officer (RO) for conducting elections to its Managing Committee/Board of Directors

The tenure of the existing Board was set to expire on June 10, 2026

Despite passing a resolution on February 18, 2026, and sending multiple follow-up letters (dated February 27, April 10, and April 20, 2026) to the RCS, no appointment was made, leading to an apprehension of governance issues and administrative stalemate

1. Whether the court should direct the RCS to appoint a Returning Officer within a specific timeline to ensure the timely conduct of elections?

2. Whether the existing Board of Directors can continue to function as a 'caretaker committee' after the expiry of their term to prevent an administrative vacuum?

The Court's primary focus was the administrative oversight functions of the Registrar under the Delhi Co-operative Societies Act, 2003, regarding the timely conduct of elections

The Court relied on the precedent established in Jamia Cooperative Bank Limited v. GNCTD Anr. (W.P.(C) 12817/2019), which held that in the absence of a clear statutory provision for the interregnum between boards, the outgoing committee may continue as a "caretaker committee" with restricted powers to ensures day-to-day administration without taking major policy decisions

The Court noted that the RCS, through counsel, agreed to appoint an RO within two weeks

To prevent a stalemate in bank governance, the Court applied the "caretaker" doctrine from the 2019 precedent

The Court reasoned that while the RO must be appointed immediately to review electoral rolls and ensure fair elections, the existing board’s continuation is necessary for the bank's survival through "normal banking activity." However, to ensure legal propriety, this continuation was strictly limited in time and scope—prohibiting policy shifts or significant fund transfers while allowing for salaries and routine operations

It held that the present Managing Committee shall serve as a "Caretaking Committee" for a maximum of three months post-expiry of their term (i.e., until September 10, 2026)

This committee is specifically prohibited from taking major policy decisions or utilizing funds for purposes other than day-to-day administration and staff salaries. The petition was disposed of with these directions