Point of law: The term 'State' but clarified that when a private body exercises public function even if it is not a State, the aggrieved person has a remedy not only under the ordinary law but also under the Constitution, by way of a writ petition under Article 226.

JUDGMENT :

1. Heard Sri Lavlesh Kumar Shukla, learned counsel for the petitioner and Sri Pranjal Mehrotra, learned counsel appearing for the respondents.

2. Petitioner, by means of the instant petition, is assailing the order dated 31 March 2021, passed by second respondent, Senior Group Manager, Employee Relations, IndusInd Bank Limited, Corporate Office Human Resources Department, Mumbai, [“Bank”], terminating the services of the petitioner.

3. Learned counsel appearing for the respondents, at the outset, submits that the writ petition against an employer, a private bank, would not be maintainable. It is urged that service contract of a private bank employee cannot be enforced in writ jurisdiction.

4. Facts, briefly stated, is that petitioner was appointed Associate Service Delivery Manager, a Class-III post, on 29 October 2018 by the respondent Bank. On a complaint filed by a customer, a disciplinary enquiry came to be instituted against the petitioner by issuing a charge sheet on 01.02.2021. Petitioner responded by filing written statement/defence to the fourth respondent, enquiry officer/Branch Manager; IndusInd Bank Limited, Branch Robertsganj, District Sonbhadra. The inquiry officer, on completion of the enquiry, forwarded the enquiry report. Petitioner came to be terminated by the impugned order. The enquiry was initiated against the petitioner for breach of Discipline and Appeal Rules and Code of Conduct, as applicable to the employees of the Bank. It is noted in the impugned order that petitioner has a remedy of appeal before Zonal H.R. Partner, New Delhi. The appeal was to be made within 30 days of receipt of the order.

5. It is urged by learned counsel for the petitioner that Bank is ‘State’ within the meaning of Article 12 of the Constitution of India; it is performing public duty; Bank, though private, is amenable to writ jurisdiction under Article 226, falling within the expression ‘other authorities’; petitioner was not granted opportunity of hearing; the impugned order is arbitrary and has been passed without following principles of natural justice. Reliance has been placed on the decisions rendered in M/s Pearson Drums & Barrels Pvt. Ltd. Vs. The General Manager, Consumer Education Cell of Reserve Bank of India and others, [WPA No. 21710 of 2017, decided on 10.03.2021] and Roychan Abraham Vs. State of U.P. and others, 2019 (3) ADJ 391 (FB).

6. It is not disputed by the learned counsel for the petitioner that respondent-bank is a private sector bank duly incorporated and having licence under Banking Regulation Act, 1949, [for short “Act, 1949”]. Reserve Bank of India, [for short “RBI”] is entrusted with the full responsibility for supervising and regulating the banks, including, private banks. Under Section 22 of the Act, 1949, private banks are required to obtain licence from RBI to carry out the banking business in India. On specific query, learned counsel for petitioner is unable to show that service conditions of the petitioner is governed under any statutory Rules applicable to the employees of a private bank.

7. The private banks would be amenable to the writ jurisdiction for breach of any of the statutory provision under which it is incorporated or bound to be governed, but the services of the employee of a private bank is contractual and governed as per the Rules framed by the Bank/ employer. In the instant case, petitioner is governed by Discipline and Appeal Rules, and the Code of Conduct, as applicable on the employees of the Bank.

8. Whether a private company engaged in banking business performs public function, in other words, does banking business as a scheduled bank involve public law element was considered by the Supreme Court in Federal Bank Ltd. Vs. Sagar Thomas and others, (2003) 10 SCC 733, the Court held that a private company carrying on banking business as a scheduled bank, cannot be termed as an institution or company carrying on any statutory or public function. A private body or a person may