Supreme Court Dismisses Appeal Against IBPS in Clerical Recruitment Dispute — Caste Certificate Validity and Maintainability of Writ Against Non-State Entity. Institute of Banking Personnel Selection Held Not Amenable to Writ Jurisdiction Under Article 226 as It Does Not Discharge Public Duty and Is Not 'State' Under Article 12.

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Case Note & Summary

The appellant, Rajbir Suraj Bhan Singh, participated in a Common Written Examination conducted by the Institute of Banking Personnel Selection (IBPS) for clerical cadre posts in Public Sector Banks. He secured 110 marks out of 200 and was called for an interview on 14.02.2014. At the interview, he submitted a caste certificate dated 28.10.2010 issued by the Naib Tehsildar, Nangal Chowdhary, Haryana, showing he belonged to the Ahir community, recognized as Other Backward Class (OBC). He also had a certificate dated 29.01.2014 in the prescribed format declaring him as OBC and not belonging to the creamy layer. However, as per the advertisement, OBC candidates were required to produce a certificate issued between 01.04.2013 and 31.03.2015. The appellant could not produce a certificate within that period, leading to his disqualification on 01.04.2014. He filed a writ petition in the High Court challenging the disqualification, which was dismissed as not maintainable on the ground that IBPS is not a 'State' under Article 12 and does not discharge public functions. The Supreme Court considered two main issues: whether IBPS is a 'State' under Article 12, and whether a writ petition under Article 226 is maintainable against IBPS on the ground of public duty. The appellant argued that IBPS is under deep and pervasive government control, citing the composition of its governing body and a letter from the Ministry of Finance approving its recruitment programme. The respondent contended that IBPS is a private society registered under the Societies Registration Act, 1860, receives no government funds, and is not administratively controlled by the government; it merely conducts examinations on a contractual basis. The Supreme Court, applying the test from Pradeep Kumar Biswas v. Indian Institute of Chemical Biology, held that IBPS is not financially, functionally, or administratively dominated by the government. The presence of government nominees in the governing body does not amount to pervasive control. The Court also held that IBPS does not discharge public duty; its functions are contractual and not statutory. Therefore, a writ petition under Article 226 is not maintainable. The appeal was dismissed, and the High Court's order was upheld.

Headnote

A) Constitutional Law - Article 12 - 'Other Authorities' - Deep and Pervasive Control Test - IBPS, a society registered under Societies Registration Act, 1860, is not 'State' under Article 12 as there is no financial, functional, or administrative control by the Government; mere presence of government nominees in governing body does not constitute pervasive control (Paras 8-10).

B) Constitutional Law - Article 226 - Writ Jurisdiction - Public Duty - IBPS does not discharge public duty as it is a private entity conducting examinations on contractual basis for banks; writ petition under Article 226 is not maintainable against it (Paras 9-10).

C) Service Law - Recruitment - Caste Certificate - Validity - Appellant's failure to produce OBC certificate within prescribed period (01.04.2013 to 31.03.2015) at interview led to disqualification; subsequent production of certificate issued in 2010 and 2014 did not cure defect (Paras 1-2).

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Issue of Consideration

Whether the Institute of Banking Personnel Selection (IBPS) is a 'State' under Article 12 of the Constitution of India or amenable to writ jurisdiction under Article 226 on the ground of discharging public duty.

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Final Decision

The Supreme Court dismissed the appeal, holding that IBPS is not a 'State' under Article 12 and does not discharge public duty; therefore, a writ petition under Article 226 is not maintainable. The High Court's order was upheld.

Law Points

  • Article 12 of the Constitution of India
  • Article 226 of the Constitution of India
  • Writ jurisdiction against non-state entities
  • Public duty test
  • Deep and pervasive control test
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Case Details

2019 LawText (SC) (4) 69

Civil Appeal No. 4455 of 2019 (Arising out of SLP (C) No.18201 of 2015)

2019-04-29

L. Nageswara Rao

Rajbir Suraj Bhan Singh

The Chairman, Institute of Banking Personnel Selection, Mumbai

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Nature of Litigation

Civil appeal against dismissal of writ petition challenging disqualification from selection process for clerical cadre posts in Public Sector Banks.

Remedy Sought

Appellant sought to challenge the disqualification and be considered for appointment to the post of Clerk.

Filing Reason

Appellant was disqualified from the selection process for failing to produce an OBC certificate issued within the prescribed period (01.04.2013 to 31.03.2015) at the time of interview.

Previous Decisions

The High Court dismissed the writ petition as not maintainable, holding that IBPS is not a 'State' under Article 12 and does not discharge public functions.

Issues

Whether IBPS is a 'State' under Article 12 of the Constitution of India? Whether a writ petition under Article 226 is maintainable against IBPS on the ground that it discharges public duty?

Submissions/Arguments

Appellant argued that IBPS is under deep and pervasive government control due to composition of governing body and letter from Ministry of Finance, and that it discharges public functions. Respondent argued that IBPS is a private society, receives no government funds, is not controlled by government, and does not discharge public duty; writ petition is not maintainable.

Ratio Decidendi

A body is 'State' under Article 12 only if it is financially, functionally, and administratively dominated by or under the control of the government, and such control must be pervasive. Mere presence of government nominees in governing body or regulatory control does not suffice. A writ petition under Article 226 is maintainable against a body only if it discharges public duty, which is not the case for IBPS as it conducts examinations on a contractual basis.

Judgment Excerpts

As there is no control by the Government over the Respondent in the manner mentioned above, we have no doubt in our mind that the Respondent cannot be said to be falling within the expression ‘State’ under Article 12 of the Constitution of India. The question that remains to be answered is whether the Writ Petition is maintainable against the Respondent on the ground that it discharges public duty.

Procedural History

The appellant filed a writ petition in the High Court challenging his disqualification from the selection process. The High Court dismissed the writ petition as not maintainable. The appellant then filed a Special Leave Petition in the Supreme Court, which was converted into Civil Appeal No. 4455 of 2019.

Acts & Sections

  • Constitution of India: Article 12, Article 226
  • Societies Registration Act, 1860:
  • Bombay Public Trusts Act, 1950:
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