JUDGMENT

SHARMA, J.:— The main question before us is whether a Regional Rural Bank established by a notification under S. 3 of the Regional Rural Banks Act, 1976 is "State" for the purposes of Part III of the Constitution of India. This appeal by special leave arises out of a suit by the respondent No. 1, an employee of the appellant Bank, challenging the validity of a disciplinary proceeding against him and the order of his dismissal from service passed therein. The trial court decreed the suit and the decree was confirmed by the Additional District Judge in appeal and by the High Court in second appeal.

2. The facts briefly stated, omitting the details which are not relevant for the purpose of this judgment, are in a short compass. The respondent No. I was, in 1981, served with a lengthy charge-sheet containing many accusations, some of them being serious, and he was called upon to file his show cause. A large number of documents were mentioned in the charge-sheet and the respondent demanded copies thereof for the purpose of filing his reply. According to the appellant several opportunities were given to the respondent to inspect the documents (excepting a few in respect of which