Employees of Quasi-Government Organizations, Banks Not Government Servants, Rules Madras High Court

Employees of Quasi-Government Organizations, Banks Not Government Servants, Rules Madras High Court

The Madras High court bench of Justice KK Sasidharan and Justice PD Audikesavalu recently held that the employees of institutions like Reserve Bank of India (RBI) do not fall within the ambit of government servants.

The question which came up for court's consideration was that whether the employees of quasi-government organizations and banks, employees of government, as Article 12 of the Constitution confers RBI with the status of state.

Clearing the dilemma concerning the position of RBI and like institution's employees, “It is true that RBI is a state within the meaning of Article 12 of the Constitution. Even then it cannot be said its employees are all regular government employees”, the bench said.

As per the facts, Tamil Nadu Public Service Commission (TNPSC) had issued a notification on November 9, 2016 to fill up vacant posts lying under Group-I services. E Manojkumar, got selected for the post of DSP, however it later came to notice that he was an employee at RBI.

TNPSC rejected Manoj's candidature for the DSP post on the ground that he had withheld material information from the Commission that he was a government employee.

Single judge bench of the Madras High Court also conceded with the Commission's contention and held that Manoj, being an employee of RBI, falls under government employee category and suppression of this fact will vitiate his candidature.

Aggrieved by the said order, Manoj preferred an appeal before the division bench of High court.

The bench set aside the March 26 order passed by the single judge and held that their was no concealment on the part of the appellant, as the application only indicated a column for government employee and omitted to include other services along with the government one in tune with clause 15(g) and it was the mistake of the outsourcing agency which had prepared the application form.

The bench then, directed the TNPSC to ensure the appellant is given a letter of appointment by the government within a week .

Madras High Court
Reserve Bank of India (RBI)
Tamil Nadu Public Service Commission (TNPSC)

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