(1.) On Preliminary Hearing In this writ petition presented under Art. 226 of the Constitution, by an employee of the Reserve Bank of India, the following question of law arises for consideration: "Whether the employees of the Reserve Bank of India hold civil posts under the Union and consequently are governed by the provisions of Art. 311 of the Constitution of India?"
(2.) The petitioner is a Staff Officer on the establishment of Reserve Bank of India. A departmental enquiry has been instituted against him by the Manager, Reserve Bank of India, Bangalore. The petitioner has questioned the validity of Regulation 47 (2) of the Reserve Bank of India Staff Regulation which confers power on the Manager, Reserve Bank of India, Bangalore to institute disciplinary proceedings against the petitioner, on the ground that it is violative of clause (1) of Art-311 of the Constitution of India. The case sought to be made out by the petitioner is on the basis that the petitioner was appointed by the Governor of the Reserve Bank of India, and the Manager is an authority lower in rank than the appointing authority and, therefore, Regulation 47 (2) contravenes clause (1) of Art 311 as it vests the power of instituting disciplinary proceedings for imposition of major penalty against the petitioner, on such lower authority.
(3.) In support of the submission that employees of the Reserve Bank of India hold civil posts Sri G. N. Seshagiri Rao, learned counsel for the petitioner, relied on the decision of the Delhi High Court in J.S. Sachdev v. Reserve Bank of India 1873 SLC 702 (Delhi) FB He pointed out that in the said decision the Delhi High Court has held that the Reserve Bank of India falls within the definition, of the word 'State' as defined in Art. 12 of the Constitution. He, therefore, submitted that as the Reserve Bank of India falls within the definition of the word 'State' the petitioner is an employee of State and therefore he holds a civil post under the State and consequently is governed by clause (1) of Art 311 of the Constitution of India.