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2019 (4) TMI 1991

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..... ol by the Government over the Respondent in the manner mentioned above, there are no doubt that the Respondent cannot be said to be falling within the expression State under Article 12 of the Constitution of India. Whether the Writ Petition is maintainable against the Respondent on the ground that it discharges public duty? - HELD THAT:- This Court in Federal Bank case [ 2003 (9) TMI 707 - SUPREME COURT ] held that a Writ Petition under Article 226 of the Constitution is not maintainable against a scheduled bank on the ground that the business of banking does not fall within the expression public duty . As the activity of the Respondent of conducting the selection process for appointment to the banks is voluntary in nature, it cannot be said that there is any public function discharged by the Respondent. There is no positive obligation, either statutory or otherwise on the Respondent to conduct the recruitment tests - the Respondent is not amenable to the Writ Jurisdiction under Article 32 or Article 226 of the Constitution of India. There were four recruitments that were conducted after the year 2013 but that the Appellant did not participate in any of these recru .....

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..... urt was of the view that the Respondent was not a State within the meaning of Article 12 of the Constitution of India and there was no public function that was discharged by the Respondent. On said grounds, the High Court opined that the Respondent is not amenable to writ jurisdiction of the High Court under Article 226 of the Constitution of India. 4. Mr. Gagan Gupta, learned counsel appearing for the Appellant submitted that in the year 1975, Personnel Selection Service (PSS), a unit of National Institute of Bank Management (NIBM), was constituted with the objective of developing an efficient system for recruitment, promotion, and placement services to Public Sector Banks. Said PSS unit became an independent entity in the year 1994 and came to be known as the Institute of Banking Personnel Selection i.e. the Respondent herein. The Respondent was registered under the Societies Registration Act, 1860 and as a public trust under the Bombay Public Trusts Act, 1950. The Respondent was recognized as a Scientific and Industrial Research Organisation in April, 1984 by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The Res .....

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..... net Jeyapaul v. SRM Universities and Others 2015 (16) SCC 530, Andi Mukta Sadguru S.M.V.S.S.J.M.S.T. and Ors. v. V.R. Rudani and Ors. 1989 (2) SCC 691 and K. K. Saksena v. International Commission on Irrigation Drainage 2015 (4) SCC 670. The further submission of the learned counsel for the Appellant is that nationalized banks would fall within the expression State under Article 12 of the Constitution of India and the Respondent-Institute which conducts the selections for appointment to Public Sector Banks should be amenable to the writ jurisdiction of the High Court under Article 226 of the Constitution of India. Referring to the facts of the case, learned counsel for the Appellant submitted that he produced the certificate issued in the year 2010 inadvertently. He submitted that non-production of the certificate issued on 29.01.2014 was by mistake and he should be given an opportunity to be considered for appointment to the post of Clerk as he is fully eligible for appointment on the basis of the marks obtained by him. 5. Mr. Adarsh B. Dial, learned Senior Counsel appearing for the Respondent argued that the Respondent was only an agency conducting the process of selecti .....

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..... is to: Undertake to conduct on behalf of banks or financial institutions or other organization a total or partial selection project for recruitment or promotion involving all stages like designing and release of advertisement, receipt and screening of applications, conduct of examination, processing of results etc. 8. It is true that the Governor of the Reserve Bank of India and the Chairmen of certain Public Sector Banks along with the Joint Secretary, Banking Division, Ministry of Finance are members of the governing body of the Respondent-Institute. There is no dispute that the Respondent is not constituted under a statute. It is also not disputed that the Respondent does not receive any funds from the Government. The Respondent is not controlled by the Government. The letter dated 20.09.2010 produced by the Appellant along with the rejoinder affidavit does not show deep and pervasive control by the Government of India. The question of whether the Council of Scientific and Industrial Research fell under other authorities within the meaning of Article 12 was referred to a 7 Judge Bench of this Court. [See: Pradeep Kumar Biswas v. Indian Institute of Chemical Biolo .....

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..... m or even contract. 11. In Regina v. Panel on Take-Overs and Mergers, Ex parte Datafin PLC and Another [1987] 1 Q.B. 815 (C.A.), Lloyd L. J. speaking for the Court of Appeal held that if the duty is a public duty, then the body in question is subject to public law. The distinction must lie in the nature of the duty imposed, whether expressly or by implication. He referred to an earlier judgment in Reg. v. Criminal Injuries Compensation Board, Ex. Parte Lain [1967] 2 Q.B. 864, D.C. where Diplock L.J. held that in addition to looking at the source of power for the purpose of deciding the question pertaining to public law, nature of power is an important facet to decide whether a dispute pertains to public law or private law. 12. There is no manner of doubt that a Writ Petition under Article 226 is maintainable even against a private body provided it discharges public functions. While deciding the question as to whether ICRISAT is amenable to the writ jurisdiction under Article 226, this Court held that it is not easy to define what a public function or public duty is. It can reasonably be said that such functions as are similar to or closely related to those performa .....

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