CAT has no jurisdiction over J&K Bank cases

Excelsior Correspondent
Srinagar, Sept 11: The High Court, in a significant decision has held that the jurisdiction of hearing cases pertaining to recruitment in Jammu & Kashmir Bank are with Court and not with Central Administrative Tribunal (CAT) as the UTs have no right to control the manner and method of doing work of the holders of the posts borne on the service of the Bank.
Justice Ali Mohammad Magrey admitted to hearing the petitions filed by 452 candidates challenging the cancellation of selection process in midway for the posts of Probationary Officers and Banking Associates and initiating fresh registration for these posts. Court has already as interim measure directed the Bank to postpone the online fresh registration of these posts till further orders from the court.
In both the petitions aggrieved candidates have challenged the notice of bank dated 15.4.2020 whereby it has been notified that the selection process conducted for the posts stands cancelled and fresh recruitment notice on June 1, 2020 has been issued by the bank inviting application for recruitment to 350 posts of Probationary Officers and 1500 Banking Associates.
Government had raised preliminary objection to the maintainability of these petitions as submitted that the bank is not a State within the meaning of Article 12 of the Constitution as such there was not amenable to writ jurisdiction of this court under Article 226 of the constitution of India in view of the application of CAT Act to the UT of J&K.
Advocate General on jurisdiction of the matter submitted before the court that after the establishment of the CAT for the J&K UT and Ladakh, all jurisdiction, powers and authority which were exercisable by High Court before establishment of CAT in relation to matter of recruitment are now exercisable by the CAT as the court of first instance.
He submitted since the matter relates to recruitment in the Bank, declared as public authority, all jurisdiction and powers and authority in relation thereto lies with CAT.
On rebuttal to the arguments made by the Advocate General, Senior counsel appearing for petitioners Jehangir Ganai submitted that the instant matter does not fall within the purview of sub-Section (1) of Section 14 of the CAT Act but falls within the sub-Section (3) of the Act and does not have an automatic application to local or other authorities or corporations or societies and the said provision is to be applied by the Central Government by notification and so far the Central Government has not issued any such notification applying the provision of sub-Section (3) of CAT Act to the J&K Bank.
Advocate Ganai while giving the factual scenario, submitted that the CAT does not have any jurisdiction, power or authority in relation to the recruitment which is the subject matter of dispute in the instant petitions.
He also informed the court while referring the ruling of apex court, that the Banking service or the posts borne on the Bank cannot, by any stretch of imagination, be called as civil service of the Union or civil posts under the Union.
“Admittedly, the subject matter of this writ petition is the recruitment process concerning the posts borne on the service of the Bank. Section 14 of the CAT Act referred to at Bar, falls in Chapter III, captioned jurisdiction, powers and authority of Tribunals”, Justice Magrey said
Court while referring sub-Section (1) of Section (14) of the Act said, it specifically mentions and relates to recruitment and matters concerning recruitment. But it does not relate to the Banking Services or the posts borne thereon.
Referring the Government order dated July 4, 2020 Court said, it does not show that the UTs have the right to suspend or dismiss any holder of the post borne on the service of the Bank or the UTs have the right to control the manner and method of doing work of the holders of the posts borne on the service of the Bank.
“Further, it is not shown to the court that the posts borne on the service of the Bank are under the administrative control of the UTs or that the UTs have the right or power to create or abolish the posts and regulate the conditions of service of persons appointed to the post in Bank”, read the order.
Court concluded that it can by no stretch of imagination can be said that clause (a) of sub-Section (1) of Section 14 of the CAT Act (powers to hear cases of service matters) be said that the service of the bank is a civil service of the Union or the posts born on the service of the bank are civil posts under the Union. Court with these recording rejected the application of CAT Act to the Bank or the instant recruitment process of the Bank.