S MATHIAS Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) THIS writ Petition has been filed praying to issue a Writ of Mandamus directing the respondents to approve the promotion of the petitioner from senior Assistant to the Assistant Manager that he was given as per Resolution No. 824/99-2000, dated 30. 10. 1999 of the Administrative Board, Pudukkottai Cooperative Town Bank Limited and to forthwith resume paying the petitioner the salary of Assistant Manager at the scale of Rs. 1700-100-2100 (that was paid to the petitioner from the month of November 1999 to April 2001) along with arrears accrued from the month of May 2001 to the date of payment.

(2.) THE case of the petitioner is that he joined the third respondent Bank in the year 1980 as Clerk and as per the above said resolution, he was promoted from the post of Senior Assistant to the Assistant Manager and his pay was also fixed. Thereafter, after the general elections in May, 2001, there was a change in the incumbency and the Special Officer appointed orally informed the petitioner that he was not accepting the promotion and also refused to pay the salary in the promotional post and as against the threat of demotion, he along with two other affected persons filed a suit in O. S. No. 178/2001 before the Court of District Munsif, Pudukottai and the same was decreed on 18. 10. 2001 thereby granting permanent injunction against the Special Officer that the petitioner shall not be demoted and also directed to pay the revised salary of Assistant Manager. But, the same was not paid and hence the writ petition.

(3.) IN the counter affidavit filed on behalf of the third respondent, besides generally denying the allegations of the writ petition, this respondent would also specifically state that during the period from 1995-1996 to 2000-2001 it could not make any profit and incurred heavy loss to the tune of Rs. 10. 26 lakhs as on 31. 3. 2001 and the non-performing asset is above 20% as against 10%; that under Section 22 of the Banking Regulation Act, 1949, the Reserve Bank of India listed 14 urban Banks as 'weak' and issued notice to stop the banking business and go out of the purview of the Banking Regulation Act, 1949; that in these circumstances, the Special Officer of the Bank was forced to take necessary steps to improve the financial condition of the third respondent bank for getting licence from the Reserve Bank of India and Registrar of the Cooperative Societies also recommended the proposal to the Reserve Bank of India for getting permission to continue the banking business under the Banking Regulation Act upto 31. 3. 2003.