Case Note & Summary
The petitioner, Kiran Rangnath Kale, was employed as a Manager at the Beed District Central Cooperative Bank (respondent No. 3). He was initially appointed as a clerk on daily wages in 1989, later regularized, and promoted to Manager in 2012. During his tenure as Manager in 2011-2013, a huge embezzlement of Rs. 1.45 crores occurred at the bank, leading to 131 FIRs. The petitioner was served with show cause notices and a chargesheet alleging that he secured loans by submitting false documents, took wrongful promotion, was negligent, and did not cooperate. He was suspended on 10.03.2014, and after an enquiry, he was found guilty of carelessness and negligence and terminated on 07.07.2015. His appeal against termination was dismissed on 26.12.2017. The petitioner then filed a writ petition challenging the termination, the dismissal of appeal, and the revocation of his promotion, seeking reinstatement with back wages. The respondents raised a preliminary objection regarding the maintainability of the writ petition, arguing that the District Central Cooperative Bank is not an instrumentality of the State under Article 12 of the Constitution. The court examined the nature of the bank and held that it is a cooperative society registered under the Maharashtra Cooperative Societies Act, 1960, and is not created by a statute. The government does not have deep and pervasive control over its functions, and it does not perform public duties. Therefore, it is not a State under Article 12, and the writ petition is not maintainable. On merits, the court noted that the petitioner was given show cause notices, a chargesheet, and an opportunity to defend himself. The enquiry officer found him guilty, and the termination was based on the enquiry report. There was no violation of principles of natural justice. The court dismissed the writ petition, upholding the termination.
Headnote
A) Constitutional Law - Maintainability of Writ Petition - Article 12 of the Constitution of India - Instrumentality of State - District Central Cooperative Bank is not a State or instrumentality of State under Article 12 as it is not created by statute, not controlled by government in its functions, and does not perform public duties - Held that writ petition against such bank is not maintainable (Paras 4-8).
B) Service Law - Termination of Service - Principles of Natural Justice - Petitioner was given show cause notices, chargesheet, and opportunity to defend - Enquiry officer held him guilty of carelessness and negligence - Termination order was passed after due process - Held that there was no violation of natural justice (Paras 3, 9-10).
Issue of Consideration
Whether a District Central Cooperative Bank is an instrumentality of the State under Article 12 of the Constitution, and whether the termination of the petitioner was in violation of principles of natural justice.
Final Decision
The writ petition is dismissed. The termination of the petitioner is upheld. No order as to costs.
Law Points
- Maintainability of writ petition against cooperative society
- Article 12 of Constitution
- instrumentality of State
- natural justice
- termination of service
- cooperative bank employee
Case Details
2019 LawText (BOM) (07) 11
Writ Petition No. 3344 of 2018
S. V. Gangapurwala, A. M. Dhavale
Ms Pradnya S. Talekar (for petitioner), Mr K. B. Jadhavar (AGP for respondents 1 and 2), Mr V. N. Upadhye (for respondent 3)
The State of Maharashtra, Commissioner for Cooperation and Registrar of Cooperative Societies, The Beed District Central Cooperative Bank Limited
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Nature of Litigation
Writ petition challenging termination of service by a cooperative bank.
Remedy Sought
Petitioner sought quashing of termination order, dismissal of appeal, revocation of promotion, and reinstatement with continuity, back wages, increments, and interest.
Filing Reason
Petitioner was terminated from service as Manager of respondent No. 3 bank after being found guilty of carelessness and negligence in connection with embezzlement of Rs. 1.45 crores.
Previous Decisions
Earlier writ petition filed on 28.07.2015 challenging suspension and termination was disposed of with liberty to avail alternate remedy. Petitioner then preferred an appeal which was dismissed on 26.12.2017.
Issues
Whether the District Central Cooperative Bank is an instrumentality of the State under Article 12 of the Constitution, making the writ petition maintainable.
Whether the termination of the petitioner was in violation of principles of natural justice.
Submissions/Arguments
Petitioner argued that the bank is an instrumentality of the State and that his termination was without proper enquiry and in violation of natural justice.
Respondents contended that the bank is not a State under Article 12, and the termination was after due process.
Ratio Decidendi
A District Central Cooperative Bank registered under the Maharashtra Cooperative Societies Act, 1960, is not an instrumentality of the State under Article 12 of the Constitution as it is not created by statute, the government does not have deep and pervasive control, and it does not perform public duties. Therefore, a writ petition under Article 226 is not maintainable against such a bank. Additionally, the termination was not in violation of natural justice as the petitioner was given adequate opportunity to defend himself.
Judgment Excerpts
The petitioner who was Manager of District Central Cooperative Bank Limited (R3) assails the order of his termination dt. 07.07.2015...
The maintainability of the writ petition is challenged on the ground that, District Central Cooperative Society is not instrumentality of the State within the meaning of Article 12 of the Constitution.
The petitioner was employed as Clerk on daily wages in respondent No. 3 – DCC Bank on 09.01.1989.
During the period 201113, there was huge embezzlement of Rs. 1.45 crores in the respondent No. 3 Bank when the petitioner was the Manager.
On 04.04.2015, the petitioner was held guilty for carelessness and negligence and was terminated.
Procedural History
Petitioner was employed as Clerk on daily wages in 1989, regularized, promoted to Manager in 2012. During 2011-2013, embezzlement of Rs. 1.45 crores occurred. Show cause notices issued in 2014, suspension on 10.03.2014, chargesheet on 22.05.2014. Enquiry held him guilty on 04.04.2015, termination on 07.07.2015. Earlier writ petition filed on 28.07.2015 was disposed of with liberty to avail alternate remedy. Appeal dismissed on 26.12.2017. Present writ petition filed in 2018.
Acts & Sections
- Constitution of India: Article 12
- Maharashtra Cooperative Societies Act, 1960:
