Should a High Court decide the disputed issues on merits where the writ petition is held not maintainable?

No. Maintainability of the writ petition under Article 226 of the Constitution of India being the preliminary issue, factual findings on merits would potentially cause prejudice to the cases of the appellants in the event of approaching the forum having jurisdiction. If the writ is held as not maintainable, the High Court is expected to exercise restraint in adjudicating the disputed issues on merits, and the appellants are at liberty to approach the competent forum, which may decide the issues independently on merits, in accordance with law and uninfluenced by orders passed in the writ petitions and writ appeals.

Constitution of India — Article 226 — Writ against private sector bank — Public function test — Employer and employee dispute over payment of pension — Maintainability — Constitution of India — Article 226 — Private sector bank — No writ without statutory or public duty — Held: A writ does not lie against a private sector bank; mere regulation of banks by statutory bodies like RBI does not make such a bank discharge any public function or public duty. (¶2, 12) Constitution of India — Article 226 — Payment of pension — Contractual relationship not amenable to writ — Held further: A dispute between an employer and employee over payment of pension, the employer being a private company or bank, remains in the realm of contractual relationship and should be settled before an appropriate forum or Civil Court. (¶13) Constitution of India — Article 226 — Maintainability — Restraint in adjudicating issues on merits — Held further: Maintainability being the preliminary issue, the High Court is expected to exercise restraint in adjudicating the disputed issues on merits, and the competent forum may decide the issues independently and uninfluenced. Writ appeals dismissed. (¶14, 16)

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