S C SINGHAL Vs. UNION OF INDIA

JUDGEMENT

(1.) ON 10th March 1977, the petitioner joined oriental Bank of Commerce (hereinafter referred to as "the Bank") as a confirmed officer and was posted as Assistant General Manager on the terms and conditions of service as laid down in the letter of appointment dated 20th december, 1976, Before he joined the bank the petitioner who claims to be holding master's Degree in Commerce with professional qualifications of C. A. I. I. B. , in Banking had served for two years as lecturer in commerce at Shri Ram College of Commerce, delhi and for about 12 years in State Bank of india. The petitioner was promoted as a deputy General Manager with effect from 11th September, 1978, and was working as such at the head office of the Bank at New delhi. A department called the International banking Division was brought into being on 1st January, 1979, because in October, 1978, the Reserve bank of India authorised the Bank to transact foreign exchange business for the first time in 1978. The overall supervision of this Division was with the Chairman and the deputy General Manager. The petitioner was at that time exercising the powers of the general Manager.

(2.) UNDER the Banking Companies Acquisition and Transfer of Undertakings Act, 1980, the banks set out in the Schedule including the oriental Bank of Commerce Limited were nationalised and taken over by the Central government. This Act came into force on 15th April, 1980, when the Oriental Bank of commerce Limited was statutorily transferred and stood vested in the Bank constituted under the Nationalisation Act and named Oriental bank of Commerce.

(3.) ON 19th July, 1980, the petitioner was served with an order of suspension by the custodian of the Bank. The reason for the suspension is mentioned in the communication which reads thus: