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Supreme Court of India

GURCHARAN SINGHversusREGISTRAR, CO-OPERATIVE SOCIETIES, HIMACHAL PRADESH AND ORS.

Citation
2005 INSC 421
Decided
15 September 2005
Disposal
Disposed off

Holding

The Supreme Court held that the High Court must examine whether the cooperative society is a State within the meaning of Article 12 and restored the writ petition for determination of maintainability and merits.

Summary

Gurcharan Singh, a former employee of a cooperative society in Himachal Pradesh, filed a writ petition challenging his termination, alleging that the society was a "State" within the meaning of Article 12 and thus subject to judicial review under Article 226. The Himachal Pradesh High Court dismissed the petition, holding that a cooperative society could not be treated as a State and therefore it lacked jurisdiction. On appeal, the Supreme Court observed that the High Court had not examined the factual matrix necessary to determine whether the society fell within the definition of a State, and referred to the principles laid down in Pradeep Kumar Biswas v. Indian Institute of Chemical Biology. The Supreme Court restored the writ petition to the High Court for a fresh determination of maintainability and, if appropriate, the merits, without expressing any view on the merits itself. The appeal was disposed of, and the matter was remanded for further proceedings.

Issues considered

  • Whether a cooperative society qualifies as a "State" under Article 12 of the Constitution of India for the purpose of invoking the jurisdiction of the High Court under Article 226.
  • Whether the writ petition challenging the termination of services is maintainable before the High Court.

Legislation cited

Subjects

Article 12State definitionCooperative societyWrit jurisdictionTermination of servicesMaintainabilitySupreme CourtHigh Court jurisdiction

Judgment

A                             GURCHARAN SINGH
                                         V.

      REGISTRAR, CO-OPERATIVE SOCIETIES, HIMACHAL PRADESH
                            AND ORS.

                             SEPTEMBER 15, 2005
B
                 (ARIJIT PASA YAT AND C.K. THAKKER, JJ.]


         Constitution of India, 1950:

C         Articles 12 and 226- "State "-Co-operative Society-Employee of-
    Termination of services of-Challenged in writ petition before High Court-
    Writ petition dismissed by High Court for lack ofjurisdiction as in its view
    Co-operative Society was not State within the meaning of Article 12-Held, it
    appears that the basic factual aspects were not placed before the High Court
D   to determine the question whether the respondent-Society was "State" within
    the meaning of Article 12-It would be appropriate for the High Court to
    examine the question regarding the maintainability in the background of what
    has been stated in Pradeep Kumar's case*-Writ petition restored to jile-
    High Court to decide the question of maintainability of the writ petition as
    well as the merits.
E
          *Pradeep Kumar Biswas v. Indian Institute of Chemical Biology and
    Ors., (2002] 5 SCC lll, followed.

          Sabhajit Tewary v. Union of India and Ors., (1975] I SCC 485, stands
    overruled.
F
         Ajay Hasia and Ors. v. Khalid Mujib Sehravardi and Ors., [1981] l SCC
    722, referred to.

         CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3499 of2005.

G        From the Judgment and Order dated 12. I0.98 of the Himachal Pradesh
    High Court at Shimla in C.R. No. 9 of 1998.

         Dr. Shyamlha Pappu, R. Krishnaamorthi and Mohan Pandey for the
    Appellant.

H                                       230
          GURCHARAN SINGH r. REGISTRAR, CO-OP. SOCIETIES, HIMACHAL PRADESH      23 J
         Naresh K. Sharma and Javed Mahmud Rao for the Respondents.                     A
         The following Order of the Court was delivered :

,          The present appeal is directed against the judgment of the High Court
    of Himachal Pradesh at Shimla in Civil Review No. 9 of 1998. By the
    impugned order, the earlier order passed in Civil Writ Petition No. 1844 of         B
     1995 was recalled and it was held that the High Court had no jurisdiction to
    entertain the writ petition. This view was taken primarily on the ground that
    the respondent was a Cooperative Society and was, therefore, not covered
    within the meaning of Article 12 of the Constitution of India, 1950 (in short
    'the Constitution'). Reliance for this purpose was placed on two Division           C
    Bench judgments of the High Court holding that the High Court had no
    jurisdiction to entertain the writ petition. As noted above, the review was
    allowed and the writ petition was dismissed as being not maintainable. No
    view was expressed on the merits of the case.

           Learned counsel for the appellant submitted with reference to a seven D
    Judges Bench judgment of this Court in Pradeep Kumar Biswas v. Indian
    Institute of Chemical Biology and Ors., (2002] 5 SCC 111 that the writ
    petition is maintainable. By the said judgment, the decision of the Constitution
    Bench in the case of Sabhajit Tewary v. Union of India and Ors., [1975] 1
    SCC 485 was overruled, The Constitution Bench judgment in the case of
    Ajay Hasia and Ors. v. Khalid Mujib Sehravardi and Ors., [1981] I SCC 722 E
    was explained and multiple tests for determining whether a particular
    Corporation or Body can be held to be included within the definition of
    "State" under Article 12 of the Constitution, were laid down. It was inter-
    alia held as follows:
•
               "The picture that ultimately emerges is that the tests formulated F
           in Ajay Hasia 's ca~e (supra) are not a rigid set of principles so that
           if a body falls within any one of them it must, ex hypothesi, be
           considered to be a State within the meaning of Article 12. The question
           in each case would be - whether in the light of the cumulative facts
           as established, the body is financially, functionally and administratively   G
           dominated by or under the control of the Government. Such control
           must be particular to the body in question and must be pervasive. If
            this is found then the body is a State within Article 12. On the other
            hand, when the control is merely regulatory whether under statute or
            otherwise, it would not serve to make the body a State."
                                                                                        H
    232                       SUPREME COURT REPORTS [2005] SUPP. 3 S.C.R.

A         It appears that the basic factual aspects were not placed before the High
    Court to determine the question whether the respondent-Society was "State"
    within the meaning of Article 12 of the Constitution. In view of the aforesaid,
    we feel it would be appropriate for the High Court to examine the question
    regarding the maintainability in the background of what has been stated in
    Pradeep Kumar's case (supra). The parties shall be permitted to place materials
B   in support of their respective stands in this regard. As the matter is pending
    since 1995 and involves the question of legality or otherwise of termination
    of services of the appellant, it would be in the interest of the parties if the
    writ petition is disposed of as early as practicable preferably within four
    months from the date of receipt of our order.
c          In the ultimate result, Civil Writ Petition No. 1844 of 1995 is restored
    to file.

          We make it clear that we have not expressed any opinion on the merits
    of the case. The High Court shall decide the question of maintainability of
D   the writ petition as well as the merits. In case, it holds that it has jurisdiction,
    then it shall consider the merits by taking into account the materials to be
    placed before it by the parties in respect of their respective stand.

          The appeal is disposed of accordingly without any order as to costs.

E R.P.                                                           Appeal disposed of.




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