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TMI Blog2006 (2) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent/Bank is a scheduled bank incorporated under the provisions of Companies Act. It is stated that the writ petition has been filed by the appellant herein to protect the interest of the members of their Sangam, who are the main subscribers of the second respondent/Bank, when attempts were made by the respondents 2 to 5 herein to transfer 95418 shares to third parties contrary to the guidelines issued by the first respondent and that the respondents 2 to 5 are violating the guidelines issued by the first respondent pertaining to transfer of shares; that on 12.03.2004 in the 81st Annual General Meeting of the second respondent bank, so many shareholders were prevented from attending the meeting on the ground that only power of attorney holders are entitled to attend the same; that despite requests made to record their objections, nothing has been done; that the first respondent/Bank prevented 33% of the shareholders of the bank from participating and voting in the said meeting on the other ground that a case in O.S. No. 479 of 1995 on the file of District Munsif, Tuticorin, filed by the power of attorneys to restrain the bank from preventing the respondents 3 to 5 from exercising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 3 to 5 filed a suit in O.S. No. 479 of 1995 for injunction restraining the second respondent Bank from in any manner preventing them, jointly or severally, exercising all or any powers including the right to vote and other anciliary rights at the Annual General Meeting or other meeting of the bank; that the said suit came to be compromised and a decree dated 03.10.1996 was passed to that effect, which became final and binding on the parties to the suit; that the bank also filed Civil Suit No. 836 of 1998 before the High Court, Madras for declaration that seven companies, which have purchased the shares are neither the legal nor equitable owners of the shareholders and also to declare that the powers of attorney become inoperative and that the decree passed in O.S. No. 479 of 1994 is inoperative and not binding as the suit was dismised as not pressed; that subsequently, the first respondent refused to acknowledge the transfer of shares in favour of the seven companies, hence, the transfer of the shares remain unresolved and prayed for dismissal of the writ appeal. 4. The learned single dismissed the writ petition filed by the appellant herein on the ground that the same is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enterprise to earn livelihood and to make profits out of such activities. Banking is also a kind of profession and a commercial activity, the primary motive behind it can well be said to earn returns and profits. Since time immemorial, such activities have been carried on by individuals generally. It is a private affair of the company though case of nationalized banks stands on a different footing. There may, well be companies, in which majority of the share capital may be contributed out of the State funds and in that view of the matter there may be more participation or dominant participation of the State in managing the affairs of the company. But in the present case, we are concerned with a banking company which has its own resources to raise its funds without any contribution or shareholding by the State. It has its own Board of Directors elected by its shareholders. It works like any other private company in the banking business having no monopoly status at all. Any company carrying on banking business with a capital of five lacs will become a scheduled bank. All the same, banking activity as a whole carried on by various banks undoubtedly has an impact and effect on the econ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmally not be amenable to the writ jurisdiction under Article 226 of the Constitution. But in certain circumstances a writ may issue to such private bodies or persons as there may be statues which need to be complied with by all concerned including the companies. For example, there are certain legislations like the Industrial Disputes Act, the Minimum Wages Act, the Factories Act or for maintaining proper environment The Air (Prevention and Control of pollution) Act 1981 or Water (Prevention and Control of Pollution) Act, 1974 etc., or statues of the like nature which fasten certain duties and responsibilities statutorily upon such private bodies which they are bound to comply with. If they violate such a statutory provision a writ would certainly be issued for compliance of those provisions. For instance, if a private employer dispense with the service of its employee in violation of the provisions contained under the Industrial Disputes Act, in innumerable cases the High Court interfered and have issued the writ to the private bodies and the companies in that regard. But the difficulty in issuing a writ may arise where there may not be any non-compliance or violation of any statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereunder review, but also in respect of every other appropriation Act and Statute whose administration requires the outlay of public money, and whose validity may be questioned. The bare suggestion of such a result, with its attendant inconveniences, goes far to sustain the conclusion which we have reached, that a suit of this character cannot be maintained. Para.11: Those remarks are with reference to a suit. They are much more applicable to proceedings under Article 226 which are of a summary and of a coercive nature without providing for a normal trial or a right of appeal except in those cases where a substantial question of interpretation of the constitution arises. This Court is being flooded with applications under Art.226 of the Constitution which is seriously affecting the normal work of the Court. We feel that the time has come when we may point out that Art. 226 of the Constitution was not intended to provide an alternative method of redress to the normal process of a decision in an action brought in the usual courts established by law. The powers under this Article should be sparingly used and only in those clear cases where the rights of a person have been seriousl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividual right of the petitioner himself though in the case of some of the writs like habeas corpus or Quo warranto this rule may have to be relaxed or modified. 10. The writ petition filed by the appellant cannot have any personal grievance in the matter and at best only its members can have any grievance. It is well settled that ordinarily a writ petition can only be filed by someone who is personally aggrieved. The powers under Article 226 of the Constitution of India should be sparingly used and only in those clear cases where the rights of a person have been seriously infringed and he has no other adequate and specific remedy available to him. The relief under Article 226 of the Constitution of India is based on the existence of a right in favour of a person invoking the writ jurisdiction. The exception to the General Rule is only in cases where the writ applied for is Writ of Habeas Corpus or Quo warranto or filed in public interest. Even assuming the members of the appellant's association is affected by an act of the second respondent, but for the purpose of enforcing the rights of the members, writ petition at the instance of the association is not maintainable. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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