Article 12 State Test: Co-operative bank held outside State control where management remained with members and elected board.

A co-operative society carrying on banking business was held not to be "State" under Article 12 because mere registration under co-operative laws and regulation under the Banking Regulation Act did not establish deep and pervasive State control. The governing statutes and bye-laws left ultimate authority with the general body of members and elected management, while the Central Government's supervisory power was limited and exercisable only in public interest. Since the society was not shown to be an instrumentality or agency of the Government, a writ petition against it was not maintainable.

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Issues: Whether a co-operative society registered under the Maharashtra Co-operative Societies Act, 1960 and the Multi-State Co-operative Societies Act, 1984, carrying on banking business and subject to the Banking Regulation Act, 1949, falls within the expression "State" under Article 12 of the Constitution of India.

Analysis: The governing test is whether the body is an instrumentality or agency of the Government, assessed on the cumulative effect of relevant factors such as financial assistance, State control, monopoly status, and the nature of its functions. The legislation governing co-operative societies placed ultimate authority in the general body of members, with management vested in elected bodies, and the Central Government's supervisory power under the special co-operative statute was only a limited power of direction in public interest. The bye-laws also showed that management and control remained with the members and Board, not with the State. Mere regulation by the Banking Regulation Act, 1949 did not amount to deep and pervasive State control, and the performance of banking, though a public function, was not by itself sufficient to convert the society into "State" under Article 12.

Conclusion: The co-operative bank was not "State" under Article 12, and the writ petition was not maintainable against it.

Ratio Decidendi: A co-operative society carrying on banking business does not become "State" under Article 12 merely because it is registered under co-operative legislation and regulated by banking law, unless the State exercises deep and pervasive control showing that the body is an instrumentality or agency of the Government.

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