LAWS(APH)-1990-3-66

ANDBRA BANK OFFICERS UNION Vs. UNION OF INDIA

Decided On March 09, 1990
ANDBRA BANK OFFICERS UNION Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The petitioner is a registered association of the Officers of the Andhra bank-the second respondent herein. By this writ petition it is impugning the "guidelines" issued by the first respondent -the Union of India - in File No. 4/6/1/85-IR dated 24-1-86 and the consequential circular No, 299 issued by the second respondent-Bank in Ref. No. 3/37 dated 30-8-89.

(2.) The order containing the guidelines dated 24-1-86 was issued by the government of India in consultation with the IBA (Indian Banks' Association) informing the Chief Executive of all Public sector Banks that: "it has now been decided that in future the Banks should strictly follow the guidelines given below in the matter. (i) An officer should be provided accommodation by the bank only if he does not have his own house at that centre. Exception to this, on account of his own house being far below the status of the officer, may be made only in exceptional cases with the approval of the Board of directors: and (ii) No Officer should be allowed to lease his own house to the bank for residential purposes for himself. Note : Own house should include a house owned by an officer in his own name or in the name of his wife or a dependent child" (emphasis added) based on the aforesaid order, the general Manager of the second respondent- bank issued a circular No. 200 on 16-5-86 advising all the Branches/controlling offices to strictly implement the guidelines with effect from 1-6-86 and take certain steps mentioned in the circular to ensure effective implementation. That circular (dated 16-5-86) was questioned by the petitioner and others in Matter No. 781 of 1986 in the Calcutta High Court and by a judgment dated 29-7-88 the said circular dated 16-5-86 was struck down by a learned single Judge on the grounds, inter alia that the General Manager "cannot unilaterally withdraw" the benefits conferred on the officers by the Board of Directors in exercise of their power under regulation 22 (1) of the Andhra Bank (Officers') Service Regulations 1982. While setting aside the circular, the learned judge observed; "but this will not prevent the respondent-Bank from issuing any fresh circular or to take any decision pursuant to the Government gaidelins in respect of future policy relating to official residence or quarters and house rent allowance of the officers of the respondent in accordance with law. " subsequently, Circular No. 299 in ref. No. 3/37 dated 30-8-89 was issued by the second respondent-bank, the material portion of which reads thus : "basing on a communication received from Government of India, containing guidelines regarding provision of housing accommodation to Officers owning a house at the place of work, our Board at its meeting held on 27-7-89 resolved to dispense with this facility of taking own houses of Officers on lease by the bank at the place of their work by giving Four months' Notice to all such officers. We furnish hereunder the salient features in this regard. i) x x x ii) x x x in pursuance of the above, we advise our Branches/controlling Offices, to strictly implement the above guidelines with effect from 1-9-89 and note the following points and ensure their implementation effectively. (emphasis added) 1. Wherever Officers' Own houses have been taken on lease by the Bank for their housing accommodation, notice is hereby given to such Officers, that lease of their houses to the bank will stand terminated with effect from 31st Dec. 1989. 2. In case where Officers owning a house at the place of work have been provided with housing accommodation by the bank, such Officers should be advised to shift to their Own houses and the lease agreements for their housing accommodation should be terminated oy giving four Month's Notice from 1-9-89. 3. The branches/controlling offices should obtain a declaration (given hereunder) from rest of the Officers, who have been provided with Housing accommodation by the bank to the effect that they do not own a house at the place of work. 4. The declaration as noted in point 3 above, should be obtained by the sanctioning authorities while considering the sanction of new proposals of the officers Housing Accommodation in future. 5. If the own houses of the officers are less than the minimum carpet area prescribed for their grade in the circular and are thereby far below their status such officers may forward their representations through proper channel to BS and bd Department, Central Office for considering provision of housing accommodation under the exemption given in these guidelines. However, Officers who have already leased out their own houses to the bank for their housing accommodation shall now at be allowed to represent that their own houses are far below their status. 6. If any Officer has a house outside the Municipal Corporation/municipality/panchayat limit, the bank shall not. take such house on lease and provide for self-occupation In case of Officers who have already leased their houses to the bank at present and which are situated outside the Municipal Corporation/municipality/ panchayat limit, for their own occupation, the lease will stand terminated in terms of item-1 above. Please note that Four Months' Notice in the above cases shall take effect from 1st September 1989. Please be guided accordingly".

(3.) Sri Y. Suryanarayana learned counsel for the petitioeer-Association contends that the Government of India has no power to issue the impugned guidelines since the Andhra Bank (Officers') Service regulations, 1982 made by the Bank in exercise of powers conferred by Section 19 read with sub-section (2) of Section 12 of the Banking Companies (Acquisition and transfer of Undertakings) Act, 1980 (Act 40 of 1980) , do not confer such power. Where the Regulations intend to confer such power on Govt. of India to issue guidelines, the same is specifically provided for e. g. Regulation Nos. 4, 6, 8, 14, 16, 17, 19, 21, 23, 26 to 29. The limited power conferred on the Govt. of India under regulation 22extends only to issuing guidelines for specifying the class or category of cities for drawal of House Rent Allowance. The impugned circular No. 299 in ref. No. 3/3? dt. 30-8-89 issued by the bank pursuant to the guidelines issued by the bank is vitiated due to total non-application of mind; the Bank merely obeyed the directions issued by the Govt. of India in the form of guidelines "acting like a Post office". By a general administrative circular the Bank has no power to dispense with the requirement of notice-period for determination of leases entered into by the bank with various Officers. There was a settlement between the Bank and the petitioner. Union on 25-2-89 by which the bank "agreed to increase the rental ceilings by around 15% over the existing rental ceilings in all the scales at all places subject to a maximum of Rs. 300/- per month," and therefore, contrary to the settlement the bank has no power to issue the circular.