Days after Orissa government appointed some BJD leaders as heads of state-run cooperative, the Orissa high court on Thursday restrained a state nominated body from taking charge of Cuttack Urban Bank.

Instead, the high court in its interim order made it clear that the previous elected body would continue to function as usual under the head of cooperative registrar until further orders.

By a notification on September 24, state government had nominated councils for several cooperative bodies. The same notification had also replaced the elected council of Cuttack Urban Bank with a nominated council that was to be headed by a BJD leader who had lost in last year's election to the post of the president of the bank.

Two members of the bank council had challenged the government's action of dismissing an elected body in the high court which in turn on Monday had stayed the operation of the notification of the state government.