GAURAV MAHAJAN Vs. HDFC BANK LTD.

JUDGEMENT

(1.) The Housing Development Finance Corporation limited is non-banking financial institution doing business like any other ordinary private body. It performs no public duty or sovereign function of State to make it amenable to writ jurisdiction under Art. 226 of the Constitution since it does not qualify as instrumentality of the State or other person or authority. State under Art. 12 of the Constitution, it is most certainly not. More certainty carries to hold that HDFC is a private organization against which a writ is not maintainable.

(2.) The law in this regard has been stated in Federal Bank Ltd. Vs. Sagar Thomas and Ors., (2003) 10 SCC 733. The Supreme Court held that the appellant institution may come under regulatory laws like the Banking Regulation Act, 1949 or within the purview of control by regulatory authority like Reserve Bank of India but still it remains a private financial institution performing commercial activities.

(3.) In this case, the petitioner has approached this Court seeking a direction to the respondent-HDFC to decide a representation filed by him which is pending with the respondent asking it to give him a No Objection Certificate. The prayer may be innocuous but the question is of jurisdiction. Since the respondent is not a statutory body created by an act of Parliament or State Legislature it has no statutory obligation which can be enforced by the writ Court. It is only when a statutory obligation is cast and is sought to be enforced against the HDFC can a writ lie in exercise of jurisdiction under Art. 226 of the Constitution. The State has no financial or administrative control over HDFC.