Lawstreet Journal

RBI is "State" under Article 12, writ petition is maintainable against private bank discharging public functions : Calcutta HC

Lawstreet Journal 13 Mar 2021 9:50pm

Image courtesy: Lawstreet Journal Judiciary RBI is "State" under Article 12, writ petition is maintainable against private bank discharging public functions : Calcutta HC

The Calcutta High Court in a recent judgement held that the Reserve Bank of India (RBI) is "State" under Article 12 of the Constitution of India and thus, a writ petition is maintainable against it. The single judge bench of Justice Sabyasachi Bhattacharyya made the observations while dismissing objections made to the maintainability of a writ petition filed under Article 226 of the Constitution against the General Manager, Consumer Education and Protection Cell (CEPC) of the RBI and the IndusInd Bank, among other respondents. The judgement further states that even private banks cannot seek refuge of being non-State actors, for the purpose of challenging maintainability of a writ petition against them, as their functions pertain to discharge of public duties, quoting

"Since the Reserve Bank of India is an instrumentality of the State, it comes squarely within the meaning of "State" as contemplated in Article 12 of the Constitution. Thus, the writ petition is maintainable."

Additionally, the benchrefused to apply the principle laid down by the Supreme Court in Federal Bank Limited v. Sagar Thomas & Ors., (2003) 10 SCC 733, that a writ petition under Article 226 of the Constitution is not maintainable against private banks in the case of M/s Pearson Drums & Barrels Pvt. Ltd. v. The General Manager, Consumer Education & Protection Cell of Reserve Bank of India and other

At the outset, the Bench made the observation that the question raised by the Petitioner in the present writ petition is not restricted to the grievance of the petitioner solely, but also… Continue Reading...


Tagged: Reserve Bank of India   calcutta high court  
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