The court held that the Jammu and Kashmir Bank does not qualify as an authority under Article 12 of the Constitution as it lacks sufficient government control or ownership.

1. The appellant - petitioner is an employee of the Jammu and Kashmir Bank Limited. A writ petition came to be filed by him before the Court which came to be decided by the learned single Judge vide his order dated 24-8-1984. The appellant had prayed relief of certiorari and mandamus against the respondent Bank and other respondents who are various officials of the Bank. The writ petition was dismissed by the learned single Judge as in his opinion the enquiry conducted against the appellant was valid and the High Court was not a Court of appeal to over - set the decision arrived at a departmental enquiry by a competent authority. About the maintainability of the writ petition the learned single Judge held that on merits the appellant had no case, therefore it was not necessary for him to consider as to whether respondent - Bank was authority amenable to the writ jurisdiction of the Court within the meaning of Art.12 of the Constitution of India . The appellant has come up in appeal to this Court.

2. At the time of admission of this appeal Mr. Bhagotra appearing for the respondents raised a preliminary objection about the maintainability of the writ petition. His objection is that Jammu and Kashmir Bank Limited and its officers are not authorities within the meaning of Art.12 of the Constitution of (India and are not amenable to the writ jurisdiction of) this Court. The objection raised by Mr. Bhagotra is of considerable importance, as such we have heard the learned counsel for the parties on this point in detail.

3. Mr. Joginder Singh appearing for the appellant submitted that on the basis of a Supreme Court authority viz : Ajay Hasia v. Khalid Mujib , AIR 1981 SC 487 , the respondent Bank is an authority for the purposes of Art.12 of the Constitution of India and amenable to the writ jurisdiction of the High Court. The contention is that in terms of Articles of Association of the respondent Bank, it is a Government Company within the meaning of S.617 of the Companies Act , and therefore, is to be treated as an instrumentality or agency of the Government. He next contended that the State Government has issued directions to its departments that they should conduct all business through the Jammu and Kashmir Bank Limited and thirdly because the Chairman of the respondent Bank is to be appointed by the State Government, therefore, also it should be treated under the administrative control of the Government and would be as such treated as an authority within the meaning of Art.12 of the .

4. It is necessary to refer to the Memorandum and Articles of Association of the respondent Bank to find out the object and the functioning of the respondent Bank. As early as on 1-10-1983 about eight promoters had formed the Jammu and Kashmir Bank and got it registered in accordance with the provisions of Jammu and Kashmir Companies Act of 1977 (1920 A. D.) Act No.XI of 1977. The said Act was repealed subsequently and Companies Act of 1556 by means of the Jammu and Kashmir (Extension of Laws) Act, 1956 was made applicable to the State of Jammu and Kashmir and respondent No.1 came to be regulated by the Companies Act of 1956. It was provided in the Articles of Association that the respondent - Bank shall be Government Company within the meaning of S.617 of the Companies Act . The object of the Bank for which it was established was to carry on banking business and transact all other business in relation to borrowing, receiving or taking of money, lending or advancing of money, drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exc