IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
V.K. Gupta,A.M. Mir,R.K. Nehru, JJ.
Firdous Ahmad Tanki - Appellant
Versus
J&K Bank Ltd. - Respondent
SWP No. 960/1992
Decided On : 05 December, 1995
ARTICLE 12 - INTERPRETATION AND APPLICABILITY - JAMMU AND KASHMIR BANK LTD. - WRIT JURISDICTION - WHETHER BANK IS AN INSTRUMENTALITY OR AGENCY OF THE STATE - DEEP AND PERVASIVE CONTROL TEST - HELD, BANK IS AN INSTRUMENTALITY AND AGENCY OF THE STATE AND THUS WRIT JURISDICTION IS MAINTAINABLE.
Fact of the Case:
The Jammu and Kashmir Bank Ltd. (Bank) was incorporated as a Government Company under the then J&K Companies Act of 1977. The State Act was repealed and replaced by the Central Companies Act, 1956. The Bank was a Government company in terms of section 617 of the Companies Act and its object was to carry on banking business and transact all other business related to borrowing, receiving or taking of money, lending or advancing money, drawing, making, discounting, buying, selling, collecting and dealing in bills of exchange, promissory notes, coupons, drafts, bills of lading and so on and so forth. The Bank acted as an agent for government and other local authorities. The Government of Jammu and Kashmir, as on March 20, 1992 owned 79.86 per cent of the total share capital of the Bank, the remaining being held by the public.
Finding of the Court:
The Court held that the Bank was an instrumentality and agency of the State, and "authority" as contemplated under Article 12 of the Constitution of India and, therefore, amenable and subject to the writ jurisdiction of the court. The Court found that the State Government exercised deep and pervasive control over the functioning of the Bank. The Court also held that the Bank was an "authority", an "instrumentality" and "agency" of the State as contemplated under Article 12 of the Constitution and thus amenable to the writ jurisdiction of the court.
Issues: Whether the Jammu and Kashmir Bank Ltd. (Bank) is an instrumentality or agency of the State and thus amenable to the writ jurisdiction of the court.
Ratio Decidendi: The Court held that the Bank was an instrumentality and agency of the State, and "authority" as contemplated under Article 12 of the Constitution of India and, therefore, amenable and subject to the writ jurisdiction of the court. The Court found that the State Government exercised deep and pervasive control over the functioning of the Bank. The Court also held that the Bank was an "authority", an "instrumentality" and "agency" of the State as contemplated under Article 12 of the Constitution and thus amenable to the writ jurisdiction of the court.
Final Decision: The Court held that the Bank was an instrumentality and agency of the State, and "authority" as contemplated under Article 12 of the Constitution of India and, therefore, amenable and subject to the writ jurisdiction of the court.
1. By this common judgment, we shall dispose of the limited question relating to the interpretation and appliability of Article 12 of the Constitution of India in so far as it relates to respondent The Jammu and Kashmir Bank Ltd., viz, as to whether it is "State" or "other authority" as contemplated under Article 12 of the Constitution of India, and thus amenable to the writ jurisdiction of this court in terms of Article 226 of the Constitution of India.
2. A Division Bench of this Court comprising of the Hon™ble Chief Justice Dr. A.S. Anand, Acting Chief Justice (as his lordship then was) and Hon™ble Mr. Justice M.L. Bhat (as he then was) in LJPA (Writ) No. 34/1984 Jagdish Chander Gupta Vs. J&K Bank & Ors. held that the Jammu and Kashmir Bank Ltd. (Bank for short) is not an agency or instrumentality of the State Govt. and would not be therefore, termed as "an authority" for the purposes of Article 12 of the Constitution of India. It is this judgement of Division Bench which is sought to be reconsidered by this Full Bench, as in evident from a perusal of the order dated 2.11.1992 passed by a Full Bench of this court, to which a reference was made by the Hon™ble Chief Justice on 20.5.1992. The order reads as under: -
"Mr. Jalil Andrabi
The petitioner in this writ petition has basically challenged his supercession on non-consideration by the respondent. The petition came up before the learned Single Judge, Hon™ble Justice Parray. His lordships after hearing has made a reference to Division Bench for consideration of the matter vide his order dated 6.5.1992. Lord Chief Jusice vide order dated 20.10.1992 has referred the matter for consideration of admission to the Full Bench of this court and the case has come for admission before the Full Bench.
We have heard the learned counsel for the petitioner who has taken us through several judgments in support of his contention whether the respondent-Bank is a State within the meaning of Article 12 of the Constitution of India. The point raised by the learned counsel for the petitioner as argued requires reconsideration of a decision of a Division Bench of this court in LPA (W) No. 34/84 titled Jagdish Chander Gupta Vs. J&K Bank delivered on 19.12.1984. After considering the arguments of the learned counsel for the petitioner and going through the judgments cited on behalf of the petitioner, we are of the opinion that interpretation of Article 12 of the Constitution of India is required in reference to the respondent Jammu and Kashmir Bank and also consideration of the earlier Division Bench judgment indicated above, we feel that this is a fit case which should be set for hearing. The petition is admitted to hearing. Issue notice returnable within six weeks. Matter be listed after the service is complete.
Issue notice in the CMP No. 6344/92 to the respondents returnable within the same period to show cause why the interim relief should not be granted. The respondents however, are at liberty to consider the petitioner for promotion to the higher post.
Sd/-
Hon™ble Judges."
3. Even though the order dated 2.11.1992 suggests that the writ petition be heard by a Full Bench, including the question relating to the interpretation of Article 12, we are clearly of the view that we are required only to answer the limited question as to whether the Bank is an instrumentality or agency of the State and thus amenable to writ jurisdiction of this court and then remit the writ petition, after answering this question, for hearing by a regular Single Bench. In other words, if, on re-consideration of the judgment in Jagdish Chander Gupta™s case, we find that the Bank is an instrumentality or agency of the State, naturally the petition has to go back to the Single Judge for regular hearing, but if we agree with the ratio in Jagdish Chander Gupta™s case, consequence of course would be dismissal of the petition by us on this limited question alone.
4. To examine as to whether the Bank is an instrumental
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