Case filed in Patan High Court against re-appointment of Ashok Sherchan as CEO of Prabhu Bank

A case has been filed in the Patan High Court saying that the re-appointment of the Chief Executive Officer (CEO) of Prabhu Bank Limited is against the provisions of the ‘Banks and Financial Institutions Act, 2073’.

Advocate Anita Thapa KC registered the case last Friday.

Nepal Rastra Bank, company registrar’s office, Nepal Securities Board, Nepal Stock Exchange Limited, CDS and Clearing Limited and Prabhu Bank’s directors were also made opponents while filing the case.

The bench of Judge Jagadish Ghimire of Patan High Court has ordered calling both sides on February 3 for discussion.

As it is seen that both parties should be present in the discussion and the order should be made, the date of February 3 has been set for the interim order discussion, according to the order of the High Court on Sunday.

The meeting of the Board of Directors held on January 26 had decided to reappoint Ashok Sherchan as the CEO for the third-term. Sherchan has already served as the bank’s CEO for two-terms.

In the writ petition it is mentioned that giving Sherchan a third term is against the provisions of Section 29 of the Bank and Financial Institutions Act, 2073.

In section 29 (2) of the Act, there is a provision that “the term of office of the Chief Executive shall be four years at most and he may be re-appointed for one another term”.

The Central Bureau of Investigation is also investigating based on the letter of Nepal Rastra Bank against Sherchan and Prabhu Bank.