SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Mad) 244

IN THE HIGH COURT OF JUDICATURE AT MADRAS
SANJAY V. GANGAPURWALA, BHARATHA CHAKRAVARTHY, JJ.
Chairman And Managing Director, UCO Bank - Appellant
Versus
K. Marimuthu and Ors. - Respondents
W.A.Nos.2199, 3170, 1709, 1886, 3165 and 3167 of 2023 and C.M.P.Nos.20952, 25973, 25990, 15127, 16344, 25966, 17621 and 18986 of 2023
Decided On : 02-02-2024

Advocates Appeared:
For the Appellant : Mr. Srinath Sridevan, Sr. Counsel for M/s. Aishwarya S. Nathan.
For the Respondents: Mr. F.B. Benjamin George, Mr. T. Poornam.

The empanelment of lawyers by banks is a professional engagement and not a civil post, and therefore, not governed by Article 16 of the Constitution of India. Banks have the discretion to select empaneled lawyers based on merit and competence, without the need for reservation or representation for SC/ST/OBC communities.

Headnote:

Reserve Bank of India - Empanelment of Lawyers - Article 16 of the Constitution of India - Circulars, Appointment, and Empanelment Procedure - Professional Relationship - Judicial Review

Fact of the Case:

The first respondent filed a writ petition challenging the communication issued by the Reserve Bank of India withdrawing the circular on appointment of panel advocates for nationalized banks and seeking directions for adequate representation to SC/ST/OBC communities. The Single Judge directed the banks to review their empanelment procedures in compliance with constitutional mandate and established principles.

Finding of the Court:

The court found that the empanelment of lawyers by banks is a professional engagement and not a civil post, and therefore, not governed by Article 16 of the Constitution of India. It held that the banks have the discretion to select empaneled lawyers based on merit and competence, without the need for reservation or representation for SC/ST/OBC communities.

Issues: The issues involved the applicability of Article 16 of the Constitution of India to the empanelment of lawyers by banks, and the scope of judicial review in matters of contractual engagements.

Ratio Decidendi: The court held that the empanelment of lawyers by banks is a professional engagement and not a civil post, and therefore, not governed by Article 16 of the Constitution of India. It emphasized the discretion of banks to select empaneled lawyers based on merit and competence, without the need for reservation or representation for SC/ST/OBC communities.

Final Decision: The writ appeals were allowed, and the judgment of the Single Judge was set aside with the observation that the banks have the duty to select the most meritorious lawyers as their empaneled lawyers to safeguard public money. No costs were awarded, and connected miscellaneous petitions were closed.

JUDGMENT :

(Sanjay V. Gangapurwala, J.) :

(Prayer in W.A.No.2199 of 2023: Appeal under Clause 15 of the Letters Patent against the order dated 31.3.2023 made in W.P.No.13832 of 2013 by the learned Single Judge.)

Calling into question the judgment and order dated 31.3.2023 passed by the learned Single Judge in W.P.No.13832 of 2013, the respondents in the writ petition have filed these writ appeals.

2. The first respondent has filed a writ petition assailing the communication issued by the Reserve Bank of India dated 18.12.2006, thereby withdrawing the circular issued by the Reserve Bank of India dated 4.1.1991 in the matter of appointment of panel advocates for the Nationalized Banks in All India Level/State Level/ Regional Level/Zone Level. The first respondent further sought directions to empanel the advocates by following the established principles of law and to provide adequate representation to the candidates belonging to SC/ST/OBC communities.

3. It was the case of the first respondent that he was deprived of his opportunity to be empaneled as an advocate in banks despite his applications to the banks.

4. The respondents in the writ petition were nationalized banks, so also other public sector banks.

5. The learned Single Judge directed respondents 7 to 34 in the writ petition [the present appellants herein] to review the existing procedure of their respective banks for empanelment of lawyers and suitably alter/amend/frame new rules/procedures in consonance and in compliance with the constitutional mandate and based on the established principles to be adopted for appointment/empanelment.

6. The learned Single Judge in the impugned judgment observed that the prevailing procedure adopted by the banks for empanelment of lawyers is not in consonance with the established principles to be followed for appointment/empanelment. The procedure; method of selection; and merit assessment are to be made and the guidelines or procedure should contemplate the same for empaneling the lawyers. The learned Single Judge further observed that adequate representation is to be provided for candidates belonging to SC/ST/OBC communities, without compromising on the merits.

7. The banks have challenged the said judgment in the present appeals.

8. As the present appeals are filed impugning the same judgment, all the appeals are decided by the common judgment.

9. The first respondent/original writ petitioner was issued with the notice by this court. In many of the appeals notice is served on the first respondent, but he remained absent.

10. We have heard learned Senior Advocates and advocates for the respective appellants and respondents, except the first respondent/original writ petitioner.

11. The contour of the submissions of learned counsel for the appellants is that the bank has its own procedure for empanelment of lawyers. The empanelment of lawyers is not to a civil post so as to attract Article 16 of the Constitution of India. Reservation is not contemplated while empaneling the lawyers. The engagement is merely contractual.

12. The Apex Court in a catena of judgments has laid down the scope and ambit of the powers of judicial review under Article 226 of the Constitution of India. It is well established that the power of judicial review is not intended to assume a supervisory role. For a public law remedy enforceable under Article 226 of the Constitution of India, the actions of the authority need to fall in the realm of public law. The courts will not have jurisdiction to entertain a writ petition in a matter governed by contract, wherein public law element would not be involved.

13. The empanelment of lawyers by the banks cannot be on the pedestal of an employment for holding a civil post. The lawyers empaneled by the bank are not governed by the service rules of the bank. The conditions of appointment of the empaneled lawyers are not governed by any statute, rules or regulations.

14. Article 16 of the Constitution of India would apply in m

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top