P.V. NAYAK Vs. SYNDICATE BANK AND ANOTHER

JUDGEMENT

(1.) WHETHER the Syndicate Bank, which is a corporate body constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (hereinafter referred to as "the Act") falls within the definition of the word "State" as defined in art. 12 of the Constitution and consequently a writ petition is maintainable under art. 226 of the Constitution against the order passed by it against its employees in contravention of the rules regulating their conditions of service ? is the question that arises for consideration in this case.

(2.) FACTS : - The petitioner was appointed as a clerk on the establishment of the Syndicate Bank on April 25, 1960. He was confirmed in the said post with effect from March 25, 1961. At that time, the Syndicate Bank was a banking company. The said bank was taken over along with other banks under the provisions of the Act. Thereafter, the petitioner was promoted as an officer by the order of the general manager dated October 17, 1973 (Ex. A). He was placed on probation for one year. Before the expiry of one year, by order dated August 19, 1974 (Ex. C), the services of the petitioner were terminated. Against the order of termination of his services, the petitioner preferred an appeal to the chairman and managing director of the Syndicate Bank through his appeal dated September 13, 1974. The appeal was rejected as per order dated November 15, 1974 (Ex. F). It is, thereafter, the petitioner has presented this writ petition aggrieved by the order terminating his services.

(3.) IN support of his submission, he relied on the decision of the Supreme Court in Sukhdev Singh, Oil and Natural Gas Commission, Life Insurance Corporation, Industrial Finance Corporation Employees Associations Vs. Bhagat Ram, Association of Clause II. Officers, Shyam Lal, Industrial Finance Corporation, AIR 1975 SC 1331 in which art. 12 of the Constitution was interpreted. In the said case, the Supreme Court held that the Oil and Natural Gas Commission, the Life Insurance Corporation and the Industrial Finance Corporation, all of which are constituted under the law governing their constitution, are "authorities" within the meaning of that word contained in art. 12 of the Constitution, which defines the word "State" of purposes of Part III of the Constitution.