Important Point - The Reservation Act is applicable to an “establishment” defined under section 2(c) where government share capital is involved and/or it is the government aided institutions.

ANOOP V. MOHTA, J.

1. Rule. Rule is made returnable forthwith. Heard finally by consent of the parties.

2. The question is whether the Maharashtra State Public Services (Reservation for Scheduled Castes, Scheduled Tribes, De-Notified Tribes (Vimukta Jatis), Nomadic Tribes/Special Backward Category And Other Backward Classes) Act, 2001 (hereinafter for short called as “the Reservation Act”) and the State circulars for promotion are applicable to Respondent No.2 Bank (i.e. Pune District Central Cooperative Bank Ltd.), a Cooperative Bank, in which there is no share capital of the State Government and/or State Government is not involved.

3. Respondent No.1, the State of Maharashtra (the State), has issued Government Resolutions from time to time so far as the “Reservation Policy” in relation to the scheduled caste and scheduled tribes and such others are concerned.

4. Respondent No. 2 is a Cooperative Bank registered under the Maharashtra Cooperative Societies Act, 1960 and is having its registered office at the address mentioned in the cause title of the petition.

5. The Petitioner is a registered trade union under the Trade Unions Act, 1926 and is also an approved representative union under the provisions of the Maharashtra Industrial Relations Act, 1946, having its office at the address mentioned in the cause title of the petition. The challenge is to the Respondent No. 2 Bank's decision to extend the State reservation policy while granting promotion to the Bank employees.

6. The Reservation Act provides for reservation in public services posts for the persons belonging to the scheduled castes, schedule tribes, de-notified tribes, (vimukta jatis), nomadic tribes/special backward category and other backward classes in the State. The state circulars are issued accordingly. The Reservation Act is applicable to an “establishment” defined under section 2(c) where government share capital is involved and/or it is the government aided institutions. The term “establishment” is reproduced hereunder:

(c) “establishment” means any office of the Government or of a local authority or statutory authority constituted under any Act of the State Legislature for the time being in force, or a University or a company, a corporation or a Cooperative Society in which share capital is held by the Government or any Government aided Institutions.

Explanation – For the purposes of this clause the expression “Government aided institutions” shall also include institutions or industries which have been given either prior to coming into force of this Act or thereafter, aid in the form of Government land at concessional rates or any other monetary concessions by Government, or is recognised, licenced, supervised or controlled by Government;

7. The first requirement is that the Reservation Act shall be applicable to the “establishment” as defined and not otherwise. Respondent No. 2 in their affidavit specifically averred that Respondent No.2-Bank has no share capital of the State and that there is no aid of the State in any form including the State land at concessional rates and further there is no monitory concession given by the government to the Bank.

8. Strikingly, apart from above, on a clarification sought by Respondent No.2 Bank from the State, a letter/communication dated 09.03.2007 is issued by the State. The communication is taken on record and marked as “X” for identification. It reads as under :-

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9. The above communication/letter issued from the government makes a position clear that the Reservation Act and related promotional policies are not applicable to the private cooperative bank like Respondent no. 2, as it does not fall within the ambit of the word “establishment”, which is the requirement for extending the benefits of the reservation policy.

10. Learned AGP on instructions of Mr. D.M. Rane, Desk Officer, Cooperative, Textile & Marketing Department, Mantralaya, who is present in the court, also makes a statement that Respondent No. 2 Ban