KATHMANDU: The Supreme Court today refused to stay the Nepal Rastra Bank’s decision to take over the management of Bank of Kathmandu (BoK).

A single bench of Justice Mohan Prakash Sitaula issued the order following today’s hearing. The bench stated that since the central bank had taken over the management of the bank with a good intention, there was no need to intervene through the apex court’s stay order.

The bench, however, listed the issue in priority list considering the serious nature of the case. The bench also issued 15-day show cause notices to the defendants — the NRB, the NRB Board of Directors and the NRB’s Financial Regulation Department — on why they decided to take over the bank management.

Challenging the central bank’s decision, four suspended directors of the bank, including Deepak Narasingh Shrestha and Sanjaya Bahadur Shah, had moved the apex court yesterday. They had sought the apex court’s immediate intervention to stay the central bank’s decision, claiming that it might create adverse situation in the BoK. They had also sought the apex court order to let the board of directors of the BoK work independently.

The central bank had taken over the management of the bank on May 19 to safeguard the interests of investors and promoters, which was allegedly at risk due to growing disputes among the board members.

The NRB has sent a team led by Laxmi Prapanna Niroula to look after the management of the bank.