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2021 Supreme(Bom) 840

IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT GOA
M.S. Sonak, Dama Seshadri Naidu, Bharati H Dangre, JJ.
Vassudev Madkaikar - Appellant
Versus
State Of Goa - Respondent
Writ Petition No. 92 of 2021
Decided On : 05-03-2021

Advocates appeared:
S.D. Lotlikar, Advocate, Chaitanya Padgaonkar, Advocate, Jayant Karn, Advocate, Devidas J Pangam, Advocate, Sapna Mordekar, Advocate, Girish Sardessai, Advocate, Prasanna Chawdikar, Advocate, S. Bangera, Advocate, N. Gaonkar, Advocate, Vivek Rodrigues, Advocate, Vithal Naik, Advocate

Headnote:(A) Constitution of India - Article 12 - Writ jurisdiction - Goa State Cooperative Bank's classification as a 'State' - Conflicting views established in previous cases noted (Paras 1-2). The court examined several aspects, including the nature of financial support, public functions, and control over the GSCB - The GSCB does not have pervasive control by the State nor functions as an instrumentality, rendering it outside the purview of Article 12; thus, writs are not maintainable against it (Paras 10, 34).

(B) Public functions - The court established that the GSCB, while serving public interests through cooperative banking, does not fulfill public duties as defined under prevailing legal standards to be amenable to writ jurisdiction (Paras 36-40).

(C) Findings: The GSCB lacks statutory authority as a 'State' or for judicial review since it is not bound by public duty in its operations and, therefore, falls outside the scope of Article 226 (Paras 1, 2, 34, 40).

Result: The Writ Petition is dismissed.

Judgement Key Points

The legal document indicates that the powers of the Central Registrar, particularly in the context of cooperative banks and societies, include the authority to call meetings, direct amendments to bye-laws, and oversee the administrative and financial conduct of the societies. The Registrar's powers are primarily aimed at ensuring proper management, compliance with statutory provisions, and safeguarding the interests of members and the public. These powers are exercised in a manner that facilitates regulation and supervision, but they do not amount to pervasive or deep control over the day-to-day functioning of the societies or banks. The Registrar's authority is thus characterized as supervisory and regulatory, intended to maintain transparency, accountability, and adherence to legal standards, rather than direct management or control of the institutions' operations.


Table of Content
1. article 12 definition of 'state' (Para 1 , 2 , 3)
2. parties' legal arguments (Para 4 , 5 , 6 , 7 , 8 , 9)
3. judicial tests for determining 'state' (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. tests for agency and instrumentality of the state (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
5. conclusions on gscb's status (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40)

JUDGMENT

Bharati H. Dangre, J. - The cleavage of opinions between the two sets of perspectives on the issue as to whether a 'Goa State Cooperative Bank' is a 'State' within the meaning of Article 12 and whether the said Bank is discharging any public function, so as to render it amenable to the writ jurisdiction of this Court under Article 226 is the issue placed for consideration of this Full Bench.

The two division benches of this Court, in Ganesh Morto Naik v/s. Goa State Co-operative Bank Ltd.,1991 SCCOnLineBom 211 and in another case of Surendra J. Kalangutkar v/s. Goa State Cooperative Bank Ltd.,2016 SCCOnLineBom 2587 ruled that the Goa State Cooperative Bank Ltd. (hereinafter referred to as GSCB) is a 'State' for the purpose of Article 12 and that since it is discharging public functions, it is amenable to writ jurisdiction under Article 226 of the Constitution of India. On the other hand, the judgment delivered at Aurangabad, in case of Shri Suresh Bhanudas Shinde & Anr v/s. State of Maharashtra & Ors., Writ Petition No.334 of 2018 has taken a contradictory view, when confronted with the issue whether the District Cooperative Bank Ltd. is a 'State', in the backdrop of the grievances raised by one of its employees and held that the said Bank is not a 'State' within the meaning of Article 12 and even the exercise of writ jurisdiction was refused since the contractual terms between the employer and employee were held to be not subjected to any control of the State Government. Relegating the petitioner to avail other remedies available under the law, the writ petition was dismissed. Running parallel to the said view is the decision of the Full Bench of this Court in Shamrao Vithal Co-operative Bank Limited v/s. Padubidri Pattabhiram Bhat, (1993) AIR Bombay 91 which ruled that Multi State Co-operative Bank registered under the Maharashtra State Cooperative Societies Act, 1984 is not a 'State' within the meaning of Article 12, though it is governed by the BANKING REGULATIONS ACT , 1949 and it performs public functions.

2. In view of the aforesaid conflicting decisions, the Division Bench( Justice M. S. Sonak and Justice Bharati Dangre, JJ.) of this Court while dealing with Writ Petition no.92/2021, Vassudev Madkaikar & Others v/s. State of Goa & Others deemed it appropriate to resolve the said contentious issues, as such issues recur in various matters, relating not only to the GSCB but also other Cooperative banks in the State of Goa and referred the matter for a decision by a Larger Bench. In terms of the said reference, the Hon'ble The Chief Justice was pleased to constitute the Larger Bench in terms of Chapter I, Rule 8 of the Bombay High Court Appellate Side Rules.

3. The question for our consideration, in light of the reference order can be precisely and accurately framed as under:

i) Whether Goa State Cooperative Bank Ltd. is a 'State' or any instrumentality thereof, for the purposes of Article 12 of the Constitution of India.

ii) In case GSCB is not a 'State' within the meaning of Article 12, whether it performs any public functions, which would warrant issuance of writ in the nature of mandamus in discharge of its performance of the public functions.

Brief submissions:

The brief submissions advanced in favour, and against the reference question by respective parties:

4. In resolving the conflict, we are assisted by the learned Senior Counsel, Shri S. D. Lotlikar alongwith Mr. Chaitanya Padgaonkar representing the petitioner, the learned Advocate General Mr. Devidas J. Pangam with Ms. Sapna Mordekar, Additional Go

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