Odisha High Court
Constitutional LawEmployment and Labour Law

Writ jurisdiction under Article 226 does not extend to private contractual termination absent a public-law element.

PRIYABRATA SWAIN vs BANK OF BARODA

Odisha High CourtJUDGMENT: September 23, 20264 MIN READSOURCE JUDGMENT
Writ jurisdiction under Article 226 does not extend to private contractual termination absent a public-law element.. PRIYABRATA SWAIN vs BANK OF BARODA. Odisha High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was appointed by Opposite Party No. 3, a private limited company, pursuant to an offer letter dated 22 June 2012 and an appointment letter dated 9 July 2012. The appointment was governed by the company’s contractual terms, rules and disciplinary norms.

Source reference: para. 9

Following an allegation of non-performance, the petitioner was issued a show-cause notice on 8 May 2016 and was thereafter terminated by order dated 15 May 2017.

Source reference: paras. 9.1–9.2

He invoked Articles 226 and 227 of the Constitution seeking quashing of the termination order and reinstatement.

Source reference: paras. 4–6

The respondents raised a preliminary objection that Opposite Party No. 3 was a private limited company, neither “State” under Article 12 nor otherwise amenable to writ jurisdiction in a purely contractual service dispute.

Source reference: paras. 4–6, 8–8.5

The petitioner argued that Opposite Party No. 3 was subject to substantial governmental control because Bank of Baroda and Andhra Bank allegedly held 44% and 30% shares respectively, and that the company performed public functions by providing insurance coverage.

Source reference: paras. 7–7.1
02

Issues

Whether Opposite Party No. 3, being a private limited company in which public-sector banks allegedly held substantial shares, was an instrumentality or agency of the Government and therefore “State” under Article 12 of the Constitution?

Source reference: paras. 5, 7–7.1, 9.3

Whether a writ petition under Article 226 was maintainable against Opposite Party Nos. 3 and 4 in respect of the petitioner’s termination from employment under a private contract?

Source reference: paras. 4–6, 8.1–8.5, 9.2–9.4
03

Law Applied

Article 226 confers a wider jurisdiction than Article 12 and permits writs against “any person or authority,” including a private body performing a public duty; however, mandamus remains a public-law remedy and cannot ordinarily be used to enforce a purely private contract.

Source reference: Andi Mukta Sadguru v. V.R. Rudani, paras. 17–20; Binny Ltd. v. V. Sadasivan, paras. 29, 32

Under Ajay Hasia v. Khalid Mujib Sehravardi, Ramana Dayaram Shetty v. International Airport Authority of India, and Pradeep Kumar Biswas, the determination of whether a body is “State” depends cumulatively upon factors such as governmental ownership, financial assistance, monopoly status, deep and pervasive governmental control, public importance of its functions, and transfer of governmental functions; mere regulatory control or some governmental nexus is insufficient.

Source reference: paras. 7.2, 8.8, 8.11

Balmer Lawrie & Co. Ltd. v. Partha Sarathi Sen Roy similarly requires financial, functional and administrative domination by the Government, with control that is particular, deep and pervasive rather than merely regulatory.

Source reference: para. 7.5

The Court also relied on Federal Bank Ltd. v. Sagar Thomas, holding that private commercial entities are ordinarily not amenable to writ jurisdiction in employment disputes absent violation of a statutory obligation or the existence of a public-law element.

Source reference: para. 8.12

St. Mary’s Education Society and Dillip Kumar Pandey distinguish public functions generally performed by an institution from private contractual service disputes involving its employees.

Source reference: para. 8.11
04

Reasoning

The Court held that the petitioner’s employment originated solely from the offer and appointment letters issued by Opposite Party No. 3 and was governed by the company’s own contractual rules and disciplinary norms.

Source reference: paras. 9–9.2

Although the petitioner relied on the shareholding of Bank of Baroda and Andhra Bank and asserted that the company performed a public function, the Court found no material establishing governmental control over the company’s management, employment decisions, payroll, funds or disciplinary proceedings.

Source reference: paras. 8.1–8.5, 9.1

The company retained operational independence, and the termination was an internal employment action based on alleged non-performance after issuance of a show-cause notice.

Source reference: paras. 8.1–8.5, 9.1

Applying the cumulative-control test under Ajay Hasia, Ramana Dayaram Shetty, Pradeep Kumar Biswas and Balmer Lawrie, the Court concluded that Opposite Party No. 3 was not financially, functionally or administratively dominated by the Government and was not an instrumentality or agency of the State.

Source reference: para. 9.3

Further, even assuming that the company’s business involved a public-facing or socially relevant activity, the impugned termination had no direct public-law element and concerned only a private contract of employment.

Source reference: paras. 8.13, 9.2–9.4

Consequently, Article 226 could not be invoked to challenge the termination.

Source reference: paras. 8.13, 9.2–9.4
05

Holding

The Court answered both issues against the petitioner.

Opposite Party No. 3 was held to be a private limited company, not “State” under Article 12, and not subject to writ jurisdiction in relation to the petitioner’s contractual termination.

Source reference: para. 9.3

Since the termination order was issued pursuant to the private employment contract and did not involve breach of any statutory or public-law obligation, no writ could be issued against Opposite Party Nos. 3 and 4 under Article 226.

Source reference: para. 9.4

The maintainability issue was accordingly decided against the petitioner, and the matter was directed to be listed for orders in the week commencing 28 September 2026.

Source reference: para. 10
06

Acts & Sections Cited

6 provisions across 4 statutes referred to in this judgment. Each provision opens on LawLens.

Air (Prevention and Control of Pollution) Act, 19811

General Insurance Business (Nationalisation) Act, 19723

Banking Regulation Act, 19491

Indian Contract Act, 18721

Odisha High Court

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PRIYABRATA SWAINvsBANK OF BARODA

Odisha High Court · September 23, 2026

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