Bombay High Court Quashes Selection Process for Junior Clerk Posts in Co-operative Bank Due to Irregularities in Outsourced Examination. Appointment of 400 Junior Clerks set aside; directions issued for inquiry under Section 79A of Maharashtra Co-operative Societies Act, 1960.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioners, Vikram Dhondiram Raskar and others, filed a writ petition under Articles 226 and 227 of the Constitution of India before the Bombay High Court challenging the selection process for 400 posts of Junior Clerk advertised by Respondent No.4, a Co-operative Bank registered under the Maharashtra Co-operative Societies Act, 1960. The advertisement was published on 5th March, 2019 in 'Daily Sakal'. The examination and selection were outsourced to Respondent No.5, Maharashtra Institute of Hardware & Software Technology Private Limited (MIHST Pvt. Ltd.), Amravati. The petitioners applied and the examination was conducted on 14th and 15th September, 2019. Alleging irregularities in the conduct of the examination and selection, the petitioners sought a declaration that the entire selection process, including short-listing and consequential appointments, was illegal and bad in law, and further directions to Respondent Nos.1 and 2 (State of Maharashtra and Commissioner for Co-operation & Registrar, Co-operative Societies) to conduct an inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960. The court, after hearing the parties, found that the selection process was vitiated due to serious irregularities. The court set aside the appointments and directed Respondent Nos.1 and 2 to conduct and complete an inquiry under Section 79A into the affairs of Respondent No.4 Bank regarding the recruitment process. The judgment was pronounced on 22nd July, 2022 by a bench comprising R. D. Dhanuka and M. G. Sewlikar, JJ.

Headnote

A) Constitutional Law - Judicial Review - Selection Process - Articles 226 and 227 of the Constitution of India - Petitioners challenged the entire selection process for 400 posts of Junior Clerk conducted by Respondent No.4 Bank through outsourced agency MIHST Pvt. Ltd. alleging irregularities. Court held that the selection process was vitiated due to serious irregularities and set aside the appointments. (Paras 1-18)

B) Co-operative Societies - Inquiry - Section 79A of the Maharashtra Co-operative Societies Act, 1960 - Court directed Respondent Nos.1 and 2 to conduct and complete an inquiry under Section 79A into the affairs of Respondent No.4 Bank regarding the recruitment process. (Paras 2, 18)

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Issue of Consideration

Whether the entire selection process pursuant to advertisement dated 5th March, 2019 for recruitment of Junior Clerks by Respondent No.4 Bank, conducted through outsourced agency MIHST Pvt. Ltd., was illegal and bad in law due to irregularities, and whether directions should be issued for inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960.

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Final Decision

The court allowed the writ petition, declared the entire selection process and consequential appointments as illegal and bad in law, set aside the appointments, and directed Respondent Nos.1 and 2 to conduct and complete an inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960.

Law Points

  • Judicial review of selection process
  • Outsourcing of examination
  • Irregularities in recruitment
  • Section 79A Maharashtra Co-operative Societies Act
  • 1960
  • Articles 226 and 227 Constitution of India
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Case Details

2022 LawText (BOM) (07) 49

Civil Writ Petition No.923 of 2021

2022-07-22

R. D. Dhanuka, M. G. Sewlikar

Mr. Vaibhav V. Ugle, Advocate a/w. Vikas B. Somawanshi and Roshan M Chavan, for the Petitioners. Ms. Kavita N. Solunke, AGP, for Respondent Nos.1 to 3. Mr. Umesh R. Mankapure, Advocate for Respondent No.4. Mr. Abhijit Desai, Advocate for Respondent No.5.

Vikram Dhondiram Raskar and others

The State of Maharashtra and others

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Nature of Litigation

Writ petition challenging the legality of a selection process for recruitment of Junior Clerks in a Co-operative Bank.

Remedy Sought

Declaration that the entire selection process and consequential appointments are illegal; directions to conduct inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960.

Filing Reason

Alleged irregularities in the conduct of examination and selection by outsourced agency MIHST Pvt. Ltd.

Issues

Whether the selection process for 400 posts of Junior Clerk conducted by Respondent No.4 Bank through outsourced agency MIHST Pvt. Ltd. was illegal and bad in law? Whether directions should be issued to Respondent Nos.1 and 2 to conduct an inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960?

Submissions/Arguments

Petitioners argued that the selection process was vitiated due to serious irregularities in the conduct of examination by MIHST Pvt. Ltd. Respondents opposed the petition, but the court found merit in the petitioners' contentions.

Ratio Decidendi

The selection process conducted through an outsourced agency was found to be vitiated due to irregularities, warranting judicial intervention under Articles 226 and 227 of the Constitution of India. The court also directed an inquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960 to investigate the affairs of the Bank.

Judgment Excerpts

In this Writ Petition, the petitioners are seeking declaration under Articles 226 and 227 of the Constitution of India that the entire selection process pursuant to the advertisement dated 5th March, 2019 including short-listing of the candidates and their consequential appointments are illegal and bad in law and for setting aside these appointments with further directions to Respondent Nos.1 & 2 to conduct and complete the enquiry under Section 79A of the Maharashtra Co-operative Societies Act, 1960.

Procedural History

The writ petition was filed in 2021. It was reserved for judgment on 1st July, 2022 and pronounced on 22nd July, 2022.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Maharashtra Co-operative Societies Act, 1960: Section 79A
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