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1989 Supreme(AP) 22

B.P.JEEVAN REDDY, S.S.M.QUADRI
V. Narasinga Rao – Appellant
Versus
Prudential Co-operative urban Bank Ltd. , Prudential building, Rashtrapathi Road, secunderabad, represented by its Secretary – Respondent


( 1 ) THE respondent-Bank resists this writ petition on the basic ground that it is not maintainable. It is claimed that the respondent-Bank cannot be regarded as state" within the meaning of Article 12 of the Constitution. In support of the above proposition, the learned counsel for the respondent-Bank, Sri G. Ramachandra rao, relies on a decision of a Division bench of this Court in P S Naidu vs Chittoor district Co-operative Central Bank (1) 1977 (2) APLJ 282. The dicision of the Division Bench undoubtedly supports the learned counsel.

( 2 ) I have some reservations about the correctness of the view taken by the division Bench. The respondent-Bank is governed by all the regulations of the reserve Bank of India and is amenable to its control and supervision. It discharges public functions. The control and supervision exercised by the Reserve Bank would, in my view, bring the respondent bank within the ambit of "state" in article 12 of the Constitution. As I am bound by the Division Bench, I cannot possibly take a view contrary to the one taken by the Division Bench. I think it expedient that the matter is placed before a Division Bench for appropriate consideration. I may also













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