CANARA BANK Vs. APPELLATE AUTHORITY

JUDGEMENT

(1.) THE petitioners who are the Canara Bank, its manager of the Kanhangad branch and the deputy general manager, western zone, seek the issuance of a writ of certiorari to quash Ext. P-6 passed by the first respondent, namely, the Appellate Authority, constituted under the Kerala Shops and Commercial Establishments Act, 1960, hereinafter referred to as the Act, in an appeal filed by the second respondent, an employee of the bank, whose services were terminated by the bank.

(2.) THE Canara Bank Limited was a banking company registered under the Indian Companies Act, 1882. Some of the banks were taken over under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969, Act No. 5 of 1970 (hereinafter referred to as " the Acquisition Act" ). Under Section 2f of the Act, the Canara Bank is an " existing bank " which on the commencement of the Acquisition Act became a " corresponding new bank". The bank is a body corporate with power to sue and to be sued in its name.

(3.) THE bank was advancing money on the security of gold. For this purpose the services of appraisers were necessary. Such work was entrusted to experienced goldsmiths. The terms of employment were reduced to writing. In this case, Ext. P-1 is the contract between the bank and the second respondent. In paragraph 2 of Ext. P-1 it is specifically provided that the second respondent is not an employee but only an independent contractor. Paragraph 3 provides that he can engage himself in his own business or trade. Paragraph 13 provides that termination of the contract is by one month's notice in writing. No salary or wages are payable to him. The stipulation is to pay him 12 paise per loan of Rs. 100. There was a subsequent revision of this commission. It is averred in paragraph 3 of the petition that the Service Code which lays down the terms and conditions of service of the employees of the bank is not applicable to the second respondent.