M S JASRA Vs. GOVERNOR R B I

JUDGEMENT

(1.) The short question which arises for consideration in this case is with regard to the correct interpretation of Section 45(5)(i) and Proviso (ii) thereof of the Banking Regulation Act, 1949 (hereinafter referred to as the said Act).

(2.) Briefly stated the facts are that the petitioner joined the Reserve Bank of India where he worked till 8th March, 1983. on which date he joined the Lakshmi Commercial Hank as an Assistant General Manager. On his appointment in the Lakshmi Commercial Bank, he resigned from the Reserve Bank of India.

(3.) On 27th April, 1985, the Central Government passed an order under Section 45(2) of the said Act, placing the Lakshmi Commercial Bank under moratorium. Thereafter the Reserve Bank of India prepared a scheme of amalgamation of Lakshmi Commercial Bank with Canara Bank. This scheme was prepared under Section 45(5) and on 23rd August, 1985 it was sanctioned by the Central Government under Section 45(7). As a result of the aforesaid scheme of amalgamation, the staffs of two bank were merged and w.e.f. 24th August, 1985 the petitioner became an employee of the Canara Bank. He was first appointed as an Officer on Special Duty and thereafter on 1st October, 1985 he was appointed as a Divisional Manager in the Canara Bank. The petitioner represented to the Reserve Bank of India and sought protection of his status, pay, seniority, increments etc. The Reserve Bank of India, however, did not agree with the contentions of the petitioner and also came to the conclusion vide its letter dated 6th June. 1990 that the age of retirement of the petitioner was 58 years and not 60 years. The petitioner made a representation but vide letter dated 18th May, 1991 .this representation was rejected. The petitioner, if he is to retire on attaining the age of 58 years, will superannuate on 30th September, 1991.