B S LOKESH Vs. CHAIRMAN CAUVERY GRAMEENA BANK

JUDGEMENT

(1.) the facts are not in dispute. Respondent No. 1-cauvery grameena bank is sponsored by the state bank of mysore. The various branches of the said bank follow the directions given by the state bank of Mysore or the reserve bank of India as per Section 24 of the reserve bank of India act read with the guidelines time and again given by national bank for agriculture and rural development (hereinafter referred to as nabard).

(2.) on 11-7-1977 the bank recruited the petitioners and others as managers and posted them to work at different places. Both nabard and the bank in question thought that it will not be proper if the appointments are stopped at the initial stage itself without promotional avenues. Hence, nabard issued guidelines as per Annexure-H with regard to the mode of promotions to be made. A reading of it makes clear that promotion to the higher posts of area managers and senior managers shall be on the basis of seoiority-cum-ment and not merit-cum-seniority. "seniority-cum -merit" means that given the minimum necessary merit requisite for efficiency of administration, the senior though the less meritorious shall have priority, as held by the High Court of Kerala in w.a. No. 604/1988 which was subsequently affirmed by the Supreme Court in state of Kerala v n.m. thomas, AIR 1976 SC 490 further clarifying that such an interpretation is not in direct contravention of article 16(1) and (2) of the constitution.

(3.) out of 35 persons appointed, a few belong to scheduled caste, whose appointments were made on the basis of reservation. Not in dispute at the time of appointments made 11-7-1977 all these petitioners were placed above the respon- dents/promotees. Except the guidelines given by nabard, there are no standing orders regulating the selection, appointment, promo- tion or other service conditions of respondent- bank employees.