Court issues show cause notice to NRB on NCC Bank row

ShareSansar, January 17:

Acting upon a writ petition filed by the shareholders of NCC Bank Limited seeking a special AGM, the Appellate Court Patan has issued a show cause notice to Nepal Rastra Bank.

This comes at a time when the central bank had issued a warning letter to the Board of Directors of NCC Bank that it would suspend the BoD members if they failed to amicably resolve the differences among them.

Following the letter from the central bank dated December 31, NCC Bank directors Ashok Shumshere Rana, Hari Bhattarai and Tirtha Pradhan had also moved the appellate court to block their suspension and also to seek a decree from the court on the special general convention.

Conducting a hearing on the case, the court issued a show cause notice to the central bank, asking as to why it deems it necessary to suspend the BoD of NCC Bank.

The central bank has taken the court order normally, stating that the court also wants to hear from the defendants.

Meanwhile, the court has also asked the BoD of NCC Bank as to why it was not holding a special AGM as demanded by shareholders for a long time.