FEDERAL BANK LTD Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) Two notifications issued by the Central Government under the Employees Provident Fund and Miscellaneous Provisions Act (hereinafter referred to as the 'Act') have been challenged by certain Scheduled Banks and some of its employees in this Writ Petition. The issue involves considerable ramifications for the establishments and hundreds of it's employees.

(2.) Petitioners 1 to 6 are Banking Companies in the private sector that are governed by the Banking Regulation Act. It is not permissible for the banks to carry on any business activity other than those permitted under the Banking Regulation Act. It is asserted that there is identity in the activity carried on by the Private Sector Banks and Nationalised Banks. Petitioners 7 to 10 are employees in the workmen category employed in petitioners 3 and 5 banks.

(3.) Terms and conditions of service of employees in the category of workmen in both Private Sector and Nationalised Banks are not only uniform, but governed by common awards and settlements under the Industrial Disputes Act (for short 'ID Act'). Reference is made in this regard to the Sastri Award and Desai Award. The latest long term industry -- vide settlement with regard employees and the workmen category of the banks in the Private Sector and the Nationalised Banks was signed on 27/03/2000 and continues to remain valid till it is terminated in accordance with the provisions of the ID Act.