UNITED BANK OF INDIA Vs. P.K. DUGGAL

JUDGEMENT

(1.) THIS appeal is directed against an order dated 31st July, 2006 passed by the learned Single Judge allowing Writ Petition (C) No. 3227 of 1987 filed by the Respondent. The writ petition had been filed challenging an award dated 28th November, 1986 answering the reference made to it against the Respondent passed by the Industrial Tribunal ('Tribunal'). In effect the Industrial Tribunal held that the action of the United Bank of India (the appellant herein) in not reinstating the Respondent with effect from 1st August, 1976 with back wages, despite his having been exonerated of all the charges in an enquiry conducted by the Narang Bank of India Limited ('NBIL') (which was taken over by the appellant), was justified.

(2.) DURING the pendency of the writ petition, the Respondent died and his legal representative Smt. Kamlesh Duggal was brought on record. The total sum payable, in terms of impugned judgment of the learned Single Judge, to the Respondent was Rs. 2,72,000. Pursuant to the order dated 17th October, 2006 passed by this Court, the said sum was deposited in this Court by the appellant. It has been kept in a fixed deposit that has been renewed from time to time. Smt. Kamlesh Duggal, the legal representative of the Respondent, has filed C.M. No. 17470 of 2006 as cross objections in the appeal for grant of interest on the amount due to the Respondent for the period it remained unpaid.

(3.) ON 25th July, 1976 and agreement was entered into between the appellant and NBIL whereby the assets and liabilities of the latter were taken over by the appellant. As per the agreement dated 25th July, 1976 employees of the NBIL who were under suspension were also to be taken over by the appellant. The relevant clause in this regard reads as under: