USHABEN K SHAH Vs. BHARAT OVERSEAS BANK LIMITED

JUDGEMENT

(1.) . Rule. Mr. Panesar, learned Counsel for the respondents, waives service of Rule on behalf of respondents. With the consent of the parties, the matter is taken up for final hearing today.

(2.) . This Special Civil Application filed by an employee of the Bharat Overseas Bank Ltd. is directed against her transfer order dated 14-9-96 and the order dated 18- 9-96 whereby she has been relieved on transfer in pursuance of the order dated 14- 9-96. When the matter came up before the Court on 23-9-96 notice returnable on 7- 10-96 was issued and by way of ad interim relief it was ordered that the petitioner shall not be compelled to report for duty at Rajkot. In the affidavit-in-reply filed on behalf of the Bharat Overseas Bank Ltd., Madras-the respondent No. 2, at the very threshold a preliminary objection has been taken that the Bharat Overseas Bank Ltd. is a Banking Company under the Companies Act, 1956 and this Banking Company is not an agency or instrumentality of the State within the meaning of Article 12 of the Constitution of India so as to make it amenable to the writ jurisdiction under Article 226 of the Constitution of India. The affidavit-in-rejoinder dated 30-10-96 was filed and the petition was sought to be amended. The amendment was granted and a reply to the amended petition has also been filed.

(3.) . This Court is, therefore, first required to consider as to whether the Bharat Overseas Bank Ltd. is any 'other authority' or an 'agency' or 'instrumentality' of the State within the meaning of Article 12 of the Constitution of India. Mr. Panesar, the learned Counsel appearing on behalf of the respondent-Bank has submitted that the Bharat Overseas Bank Ltd. is a Limited Company under Companies Act and there is no deep or pervasive control of the State in any form over this Banking Company. While referring to the Certificate of Incorporation dated 22-9-73 issued by the Registrar of Companies, Tamil Nadu, it has been submitted that government of India has no share in the respondent No. 1- Banking Company, that 70% shares of the respondent-Banking Company are held by 6 private Banks, which are Bank of Rajasthan Ltd., The South Indian Bank Ltd., The Karnataka Bank Ltd., The Vysya Bank Ltd., The Karur Vysya Bank Ltd., and The Federal Bank Ltd., while 30% of the shares are held by Indian Overseas Bank. A statement of the shareholding pattern of the respondent-Banking Company has also been attached and it has been submitted that the Government does not have any control over the activities of the respondent No. 1 and the entire management and affairs of the Company are being further clarified that the words 'Joint Sector Bank" used in the pamphlet issued by the respondent-Company means that this Banking Company is managed by 7 private ventures as aforesaid and the words "Joint Sector Bank" cannot lead to the inference that the respondent Bank is a State or other authority or an agency or an instrumentality of the State within the meaning of Article 12 of the Constitution of India.