MUNDRIKA DUBEY Vs. STATE BIHAR

JUDGEMENT

(1.) Leave granted.

(2.) This appeal is directed against the order dated December 7, 2005 of the Division Bench of the Patna High Court whereby the judgment of the learned Single Judge dated October 12, 2004 dismissing the Writ Petition has been confirmed. The facts of the case are as under:

(3.) The appellants were appointed as Class IV employees i.e. Peons in the respondent-Bank in the year 1971. They have been compulsorily retired by the Bank vide order dated June 5, 2004 made purportedly under Rules 232 and 235 of the Bihar Rajya Shakari Bhumi Vikas Bank Samiti (hereinafter referred to as the "Rules"). Aggrieved against the order dated June 5, 2004, the appellants filed several writ petitions in the Patna High Court raising pleas, inter-alia, that the action taken by the Bank was not justified under Rule 232 as they had not been retired compulsorily on the ground of inefficiency and that Rule 235 was not a source of power so as to justify an order of compulsory retirement as it only dealt with the grant of contributory provident fund and gratuity to those employees who had reached the age of 50 years and had completed 30 years of service at the time of retirement. In response to the notice issued by the High Court, the respondent-Bank filed its reply. It was, inter-alia, pointed out that the Bank was grossly over-staffed and being inefficiently run with the result that it had sustained huge losses that had brought it to a precarious financial position, and that before the action had actually been taken against the appellants, a committee had been set-up which had examined the entire structure of the Bank and as a follow- up a large number of offices and Branch Offices had been closed and a consequent re-structuring made of those which still continued to operate. It was further highlighted that the over-staffing of the Bank was evident as against the total requirement of 166 Peons, 507 had in fact been appointed and that the decision to compulsorily retire the appellants had been taken with hesitation and as one of the measures necessary to ensure the survival of the Bank. It was also pointed out that the Board of Directors in its meeting held on December 24, 2003 had examined the relevant facts and concluded that in the first phase, compulsory retirement should be ordered of lower grade employees who had completed 30 years of service and 50 years of age. A copy of these proceedings have been appended as Annexure P-1 to the Paper Book.