ANDHRA BANK Vs. ANDHRA BANK OFFICERS

JUDGEMENT

(1.) LEAVE granted.

(2.) INTERPRETATION of Regulation 26 of the Andhra Bank (Officers) Service regulations, 1982 framed under Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (for short, 'the Act')is the question involved herein. Parliament enacted the Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organization in order to further control the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote welfare of the people, in conformity with the policy of the State towards securing the principles laid down in clauses (b) and (c) of Article 39 of the Constitution and for matters connected therewith or incidental thereto. Section 3 of the Act provides for the transfer of undertakings of the existing banks. Appellant bank is a 'new Bank' within the meaning of the provisions of the said Act. Undertaking of the existing bank in terms of the said Act vested in the 'new Bank'. Section 8 of the Act provides that every corresponding 'new Bank' shall in the discharge of its functions be guided by such directions in regard to the matters of policy involving public interest as the Central Government may, after consultation with the governor of the Reserve Bank, issue. Section 19 of the Act empowers the board of Directors to make regulations, sub-section (1) whereof is in the following terms :

(3.) IN its meeting dated 20. 2. 1985, a scheme was formulated by the Bank which was circulated to all concerned in terms of its letter dated 7. 3. 1985, the relevant part whereof reads as under :