The Orissa High Court recently ruled that service matters of cooperative banks are outside its jurisdiction, as the state does not exert functional control over these institutions. The court’s decision came while dismissing a petition challenging an appointment made by the Cuttack Central Cooperative Bank (CCCB).
The single-judge bench of justice S.K. Panigrahi observed that any ‘other authority’ must perform ‘public duty’ to fall within the high court’s jurisdiction and the dispute between parties shall persist regarding the non-performing of such duty or function.
Justice Panigrahi added that the state may promote such entities (cooperative banks) as part of its social policy and economic development initiatives; however such encouragement does not equate to the performance of a ‘public function’.
The petition, filed by Bijay Kumar Pasupalak and four others in 2020, contested the appointment of seven employees of the cooperative bank on deputation as assistant manager in 2020 and their subsequent absorption into the cadre of manager cadre in the same year.
The single-judge bench further ruled, “The CCCB operates under the democratic control, and the ultimate authority regarding the service conditions of its employees lies with the management of the bank,”.
