D.I.M. SARPAL Vs. CANARA BANK

JUDGEMENT

(1.) IN this writ petition the disciplinary proceedings, which were instituted against the petitioner by the Canara Bank (respondent No. 1) have been challenged. The petitioner is an erstwhile employee of Lakshmi Commercial Bank Ltd. Under a Scheme of Amalgamation sanctioned by the Reserve Bank of India in exercise of powers conferred on it under Sub -section (1) of Section 45 of the Banking Regulation Act, the Lakshmi Commercial Bank Ltd. has been amalgamated with the Canara Bank. The Notification in that connection is dated 23rd August 1985. Under Clause (2) of the notification all rights, powers, claims etc. as well as properties of the transferor bank, that is to say, Lakshmi Commercial Bank Ltd. have been transferred to the Canara Bank. It also provides that as from the prescribed date all the liabilities, duties and obligations of the transferor bank shall be and shall become the liabilities, duties and obligations of the transferee bank.

(2.) PURSUANT to this Scheme of Amalgamation, the officers of the Lakshmi Commercial Bank Ltd. were absorbed by the Canara Bank with continuity of service, except for 76 officers, who were not so absorbed. A conference was held as between the representatives of the management of the Canara Bank and the Canara Bank Officers' Association on October 3, 1985 to determine the terms and conditions of service of the employees who were absorbed by the Canara Bank. The minutes of the meeting of October 3, 1985, inter alia, provide in Clause VI that from the date of amalgamation, all the officer employees of the erstwhile Lakshmi Commercial Bank Ltd. shall be governed by the terms and conditions of service as applicable to the officer employees in the Canara Bank and as provided in (1) Canara Bank Officer Employees' (Conduct) Regulations, 1976 and (2) Canara Bank Officer Employees' (Discipline and Appeal) Regulations, 1976. Clause VII of these minutes, which deals with disciplinary matters, provides that disciplinary proceedings against any officer employee of the erstwhile Lakshmi Commercial Bank Ltd. for misconducts committed, if any, before the date of amalgamation, shall be in accordance with the provisions contained in the Canara Bank Officer Employees' (Discipline and Appeal) Regulations, 1976.

(3.) IN view of this order the petitioner, who was an excluded employee has been absorbed by the Canara Bank. The letter of appointment states that in view of the judgment of the Supreme Court he is being absorbed. The petitioner has given a declaration dated October 15, 1987 at the time of his absorption to the effect that consequent upon his reinstatement his service conditions shall be in accordance with the minutes of the Joint Conference dated October 3, 1985 between the representatives of the management of Canara Bank and the representatives of the Canara Bank officers' Association. The petitioner is, therefore, bound by the terms and conditions as set out in the minutes of October 3, 1985.