ORISSA HIGH COURT: CUTTACK W.P.(C) No.32402 of 2022 In the matter of an Application under Articles 226 and 227 of the Constitution of India, 1950 ***

Odisha Gramya Bank Business Correspondents Association (OGBBCA), Represented through The General Secretary, Sri Pravakar Barik Son of Prafulla Barik Of Bhaskarganj (A), Sailesh Lane P.O./P.S.: Balasore District: Balasore. … Petitioner -VERSUS-

1. Union of India Represented through The Secretary Ministry of Finance Central Secretariat, New Delhi.

2. National Bank for Agriculture and Rural Development Represented through Chairman, 2nd Floor, D-Wing C/24, G-Block, Bandra, Kurla Mumbai, Mahatrastra.

3. Indian Overseas Bank Represented through Chairman.

4. The Board of Directors Odisha Gramya Bank Kokila Residency, Ananta Vihar Pokhoriput, Bhubaneswar District: Khurda.

5. Odisha Gramya Bank Represented through Chairman Kokila Residency, Ananta Vihar, Pokhoriput, Bhubaneswar District: Khurda.

6. The Dy. Chief Labour Commissioner (C)

Plot No.N.7/6-7, IRC Village Behind ISKCON Temple Nayapalli, Bhubaneswar. … Opposite parties.

Counsel appeared for the parties:

For the Petitioner : M/s. Debendra Mohanta and Sitaram Jena, Advocates For the Opposite party : Mr. Prasanna Kumar Parhi, No.1 Deputy Solicitor General of India For the Opposite party : Mr. Aurovinda Mohanty, No.3 Advocate For the Opposite party : Mr. Manoj Kumar Mishra, Nos.4 and 5 Senior Advocate Assisted by Tanmay Mishra and Roopam Mishra, Advocates P R E S E N T: HONOURABLE MR. JUSTICE MURAHARI SRI RAMAN Date of Hearing : 30.09.2024 :: Date of Judgment : 20.01.2025

JUDGMENT

Assailed in this writ petition is the “Request for Proposal for Selection of Corporate Business Correspondent with End-to-End Financial Inclusion with Technology” having Reference No.RFP/FID/02/ 22-23, dated 01.11.2022 of the Financial Inclusion Department, Head Office of the Odisha Gramya Bank (Annexure-9).

1.1. The petitioner, challenging the proposed decision of the Odisha Gramya Bank (opposite party No.5) to change the status of the Banking Correspondent Agents beseeches intervention of this Court invoking extraordinary jurisdiction under Articles 226 and 227 of the Constitution of India with the following prayer(s):

“Under the circumstances, it is prayed that this Hon‟ble Court may be graciously pleased to issue a writ or writs the nature of writ of certiorari quashing Annexure-9 declaring the same as illegal, arbitrary and against the settle position of law.

Further this Hon‟ble Court may be graciously pleased to direct the opposite party No.5 to treat the BCAs named in Annexure-1 as the regular employees of the opposite party No.5 Bank and consequently advance ail service benefits applicable to the employees of the Bank.

And pass any other order or orders as would deem fit and proper.

Further, this Hon‟ble Court may be graciously pleased to quash the SOP under Annexure-11 and declare the same as illegal, arbitrary, unreasonable and against the Order of this Hon‟ble Court dated 02.12.2022.

And for which act of kindness, the Petitioners shall as in duty bound ever pray.”

Facts:

2. The Odisha Gramya Bank and the Utkal Gramya Bank, established under the aegis of the Indian Overseas Bank and the State Bank of India respectively, in view of the Regional Rural Banks Act, 1976, have distinct area of operation.

2.1. In pursuance of Guidelines vide RBI/2010-

11/2017/DBOD No.BL.BC. 43/22.01.009/2010-11, dated 28.09.2010 issued by the Reserve Bank of India, the Odisha Gramya Bank (for convenience opposite party Nos.4 and 5 are referred to as “OGB”) desirous of expanding its banking operation extensively entered into Agreement (sample copy of which is placed at Annexure-2) with Business Correspondent/Business Facilitator (BC/BF), Clause 11 whereof indicated that the validity period of such agreement would be for one year from the date of execution subject to renewal for further period(s) on mutual consent with rider to terminate available with the Bank as well as the BC/BF giving a m