Find A Law Firm

Courts can move against state for acts against public good’

Higher courts have the power to issue writ to the state if its acts are contrary to the public good, the Supreme Court has ruled, while holding that a public sector bank also falls within the definition of the state.

‘…if any action on the part of the state is wholly unfair and arbitrary, writ courts (high court and Supreme Court) can exercise their powers,’ the apex court said.

The apex court said that if a state authority or wing acts unfairly and contrary to the public good in discharge of its contractual or statutory obligations then a writ against its wrong doings is maintainable in the high court under article 226 of the constitution.

Under Article 226 of the constitution, the high courts have vast powers in the territory under their jurisdiction and can issue writ to any person or authority, including government, to protect of fundamental rights conferred on the citizens or for any other purpose.

If in a contract ‘there is clause for arbitration, normally, writ court should not invoke its jurisdiction’ and the ‘existence of effective alternative remedy provided in the contract itself is a good ground to decline to exercise its extraordinary jurisdiction under Article 226,’ said the apex court bench of Justice P. Sathasivam and Justice Anil R. Dave.

‘If the instrumentality of the State acts contrary to the public good, public interest, unfairly, unjustly, unreasonably discriminatory and violative of Article 14 of the constitution in its contractual or statutory obligations, writ petition would be maintainable,’ said the apex court judgment delivered July 30.

The court said this while dismissing an appeal by the Central Bank of India challenging the Calcutta High Court verdict directing it to handover the title deeds and other securities to a respondent company Devi Ispat Ltd.

In the instant case, Devi Ispat availed loans and credit facilities from the bank. Subsequently, the bank found frauds in the accounts.

The bank communicated to the company to look for another bank for its financial requirements.

The company started dealing with another bank and cleared all its dues with the Central Bank of India. However, the bank refused to part with the title deeds of its factory premises and other collateral securities of the company.

Against the bank’s stand, the company moved the Calcutta High Court where the single judge decided the matter in its favour and directed the bank to hand over the title deeds and other securities.

The bank challenged the decision before the division bench which upheld the directions of the single judge.

Upholding the concurrent finding of the single judge and that of the division bench, the apex court said: ‘The appellant bank (Central Bank of India), being a public sector bank, discharging public functions is ‘state’ in terms of Article 12 of the constitution of India (thus is) amenable to the writ jurisdiction.’

JenelleSeptember 2, 2011
One or two to rembemer, that is.
ibps examJune 29, 2012
this is such a great way to stop unwanted state power
CA Ashok K GuptaJanuary 11, 2013
Commendable. But who will teach a lesson to `so called' public representatives WHO WANTS TO SWOLLOW the public itself and are amassing illegal wealth and staking the same foreign banks or putting in immovable properties/land(s). How long the innocent public of the country will suffer. Can't the Apex Court/Judiciary set the `Politician' right.
MartyJanuary 13, 2015
This westbie makes things hella easy.
AhmedJanuary 14, 2015
Way to use the internet to help people solve <a href="">prselbmo!</a>
MertJanuary 14, 2015
other sexy honeymoon post--CGI & *poof* gone! ah, somtoh K! LOL...Yo Dan! still "busy" huh?! well, I had to grab my pina colada & "Stella Artois" beer f/ya & I left ya a whopping tip, did ya get it?! next time, margarita w/extra salt on the rim please:)//||give Sarah a big kiss for me! Mahalo S, for the yummy Rob!:)//|| [url=]aqaxju[/url] [link=]utwtsimn[/link]
GregorioJanuary 15, 2015
Sorry almost all the <a href="">blgetisos</a> have pulled them down bec of a possible c&d. But the pics are now being negotiated by the papz agency that owns them and you will get to see them maybe tom once popsugar, celebuzz,etc., buys them.
AntonSondidsJanuary 25, 2017
Bentyl 20mg Shipped Ups Cialis Without Prescriptions <a href=>levitra without prescription</a> Buy Cheap Kamagra Me Uk Quiero Comprar Viagra Sin Receta Viagra For Sale In Packets Prospecto Cialis Viagra Generic Prices Priligy Generique <a href=>cialis online pharmacy</a> Levitra Acquisto Online Sample Tadalis Sx Soft Viagra Kaufen Niederlande Kamagra Oral Jelly France Cher Kamagra Jelly 100mg Ajanta Pharma <a href=>finasteride 1 mg online pharmacy</a> Amoxicillin Weight Dose Dapoxetina Costo <a href=>kamagra 100mg reputable site</a> Was Bedeutet Levitra Comprar Cialis Super Active C Diff Infection Caused By Amoxicillin Azor On Line Free Shipping Dutasteride Internet Medication Shop Overseas Provera Overseas <a href=>buy viagra online</a> Cheap Doxycycline Next Day Clobetasol Tablets Us Overseas
ProbErotsFebruary 7, 2017
In the course of years of research, aimed at developing Probolan 50 formula, safety and efficacy took the priority. Scientists <a href=>legal steroids for sale uk</a> have spent years before they were able to create a natural formula that meets all the strict requirements squeeze from your muscles
Leave a Comments
(Please Enter the code above shown on image)