The Orissa High Court has dismissed a petition challenging the Cuttack Central Cooperative Bank’s (CCCB) appointment of employees, ruling that the matter is “not maintainable.” Justice S.K. Panigrahi, presiding over the single-judge bench, stated that the service matters of CCCB fall outside the jurisdiction of the high court, as the state government does not exercise functional control over the bank’s affairs.
The petition, filed by Pradeep Kumar Malla and four others, questioned the legality of CCCB’s decision to appoint seven employees from Cuttack Urban Cooperative Bank on deputation as assistant managers in 2020 and their subsequent absorption into the cadre of manager after six months.
In his judgment, Justice Panigrahi emphasized that the lack of state control over CCCB’s management is a crucial factor in determining that the bank does not qualify as a public authority. He clarified that the deputation of employees from another bank and their absorption into CCCB’s cadre does not constitute the undertaking of a public function by the bank.
Justice Panigrahi further elaborated that while the state may support cooperative banks as part of its social and economic policies, such encouragement does not equate to the performance of a “public function.” He explained that CCCB operates under democratic control, with the ultimate authority over employee service conditions resting with the bank’s management.
The court ruled that CCCB does not meet the definition of a “state” or “instrumentality of the state” as outlined in Article 12 of the Constitution. As a result, it is not subject to the high court’s jurisdiction under Article 226. Justice Panigrahi concluded that for any entity to fall within the court’s jurisdiction, it must be performing a “public duty,” and any dispute must involve the non-performance of such a duty.
The judgment, which was officially released on August 14, reinforces the notion that private entities not controlled by the state do not fall under the purview of the high court’s jurisdiction in service matters.
