Private Banks, NBFCs Not Subject To Writ Jurisdiction: Supreme Court

The Supreme Court ruled that an entity being regulated under a statute does not automatically make it subject to writ jurisdiction unless it performs a public duty or function.

The Court clarified that writ petitions under Article 226 can be filed only against bodies fulfilling public duties or statutory obligations, not private companies like Muthoot Finance Ltd.

The appeal against Karnataka High Court’s decision was dismissed, as Muthoot Finance is not a "State" under Article 12 and lacks public duty.

The Court emphasized the "function test," stating that writ jurisdiction applies only if the entity has obligations beyond its private business operations.