Private Banks can perform public duties but not to be considered as ‘STATE’ under Article 12 of Constitution.
2nd December, 2020
The bench of justice Naheed Ara Moonis and Vivek Verma in a writ petition filed against HDFC Bank through advocate Manoj Kumar Mishra seeking interest free extensions of the loan. In with circular issued by the Reserve Bank of India due to COVID-19, .On Thursday Allahabad High Court recreate the private financial institution, may performing public duties but cannot consider under the definition of article 12 of the constitution.
The bench concurred that the writ Petition against such entity is not maintainable before the High Court.
The Federal Bank limited VS. Sager Thomas and others (2003)10 SCC 733, court allowed an appeal preferred against High Court order entertaining the reputation often ex employee of the bank seeking reinstatement. It was observed that none of six factors as I numerated in Ajay Hasia v .Khalid mujib ,(1981 )1 SCC 722 1970 ,were fulfiled in case of the private bank .