In this work, we have synthesised and structurally characterized a mononuclear cobalt(III) complex,[Co(2-O-pn)₂] Cl 2H₂O (1), (2-O-pn = 1,3-diamino-2-propanolate). From the X-ray structure of the cobalt complex, it is revealed that Co(III) ion in 1 adopts an octahedral geometry and crystallizes in the monoclinicsystem with C2/c space group. The lattice aqua molecule in combination with chloride ion in 1 forms a waterchloride cluster, (H₂O)₂ ··· (Cl)₂ through strong H-bonding interaction mediated via cobalt(III) complex in a unique binding motif. This cobalt(III) complex has been tested as an effective catalytic system towards the oxidative coupling of 2-aminophenol (2-AP) in the MeCN medium. In situ mass spectral analysis confirms that 2-AP forms an adduct with cobalt ion and the course of catalysis proceeds through catalyst-substrate binding followed by oxidative coupling of 2-AP with iminobenzoquinone. This cobalt(III) catalyst affords exclusively aminophenoxazinone species with a significant turnover number, k_cat: 6.37×10²h^-1 in the MeCN medium. This cobalt(III) complex is able to screen out the growth of some bacteria and fungi species. Quantum chemicalcalculations employing density functional theory is used to model structural parameters and spectroscopic behaviour. The theoretical findings corroborate well with the experimental results.