H B PRABHU Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) These two writ petitions have been filed by Mr. H. B. Prabhu and Mr. Vasant Ayyar, challenging the order dated 7th November, 1984, terminating their services. The said orders have been passed by the Chairman and Managing Director of the Oriental Bank of Commerce under Regulation 20 of the Oriental Bank of Commerce (Officer's) Regulations, 1982.

(2.) The facts briefly stated are that the Oriental Bank of Commerce started an international banking division after obtaining permission in 1978 from the Reserve Bank of India, to deal in foreign exchange. Mr. Prabhu, who had earlier been working since 1961 in the Canara Bank mainly in "the foreign department" joined the Oriental Bank of Commerce in early 1979 to work in the international banking division as the Chief Officer. The said division was under the overall charge of Mr. S. C. Singhal, Deputy General Manager. Mr. Vasant Ayyar, who was already working in the Oriental Bank of Commerce was inducted into the international banking division as Deputy Chief Officer. One Mr. Rakesh Saxena, who was earlier working with an exchange brokers firm, joined the Bank iin December 1978 and was also posted in the international banking division as an officer and functioned as a trader. Since the Reserve Bank of India had allowed free trading m permitted currency. Mr. Rakesh Saxena was assigned and authorized to carry on the work of interbank transactions, namely the sale and purchase of foreign exchange.

(3.) Mr. S. C. Singhal, as already noticed, was ths Deputy General Manager, and overall in charge of the international banking division. He had experience and expertise in foreign exchange operations and was at the time exercising the powers of General Manager.