STATE BANK OF INDIA Vs. KASHINATH KHER

JUDGEMENT

(1.) THESE appeals by special leave arise from the orders of the Division Bench of the Madhya Pradesh High Court made on August 27, 1993 in Misc. Petition Nos. 1965/90 and 2091/90. The facts not in dispute are that the respondents while working as Middle Management Grade Scale II officers (for short, "MMGS -II') in the State Bank of India, its Bhopal Circle have challenged the policy of the appellant -Bank dated March 21, 1990 and August 6, 1990 whereunder the officers who have not completed two years of line assignment and two years Rural/Semi -urban service were to be considered eligible for promotion to Middle Management Grade Scale III (for short, "MMGS -III"). The High Court has held that they are ineligible and such a clubbing of ineligible officers with eligible officers is violative of Article 14 and accordingly struck down the criteria and given directions in the order. Calling in question of the said order, these appeals by special leave came to be filed.

(2.) THE Preamble of the State Bank of India, Act 23 of 1955 (for short, the "Act") envisages establishment of the State Bank of India (for short, the "Bank") for extending banking facility on a large scale more particularly in the rural/semi urban area and for diverse other public purposes. Section 43 (1) of the Act gives power to the Bank to appoint such number of officers, advisers or employees as it considers necessary or desirable for the efficient performance of its functions and to determine the terms and conditions of their appointment and service. Regulation 55 of the State Bank of India General Regulations (for short, the ''Regulations") provide the power of the Local Board in respect of the staff. Regulation 55 (2) (a) envisages that appointing and/or promoting authority for various categories/Grades of officers and employees shall be such as the Executive Committee may by general or special order designate from time to time. The operation of the Bank is regulated by the Board of Managing Directors of the Bank which empowers appointment of the Committee. The Managing Committee consists of the Chief General Manager and such of the officers designated thereunder. It would appear that the Board or Managing Committee issues policy directions from time to time. The State Bank of India Officers (Determination of Terms and Conditions of Service) Order, 1979 (for short, the ''Rules") was made in exercise of the aforesaid power under section 43 (I). Rule 17 provides procedure for promotion. It envisages that: "Promotions to all grades of officers in the Bank shall be made in accordance with the policy laid down by the Central Bank or the Executive Committee from time to time. EXPLANATION: For the avoidance of doubts, it is clarified that the provisions of this paragraph shall also apply to promotions of any category of employees to the junior management grade."

(3.) IN 1990, by memo dated March 21, 1990 general guidelines for promotion to MMGS -III were envisaged which read as under: "Line Assignment: Satisfactory completion of Line assignment as Branch Manager or as Manager of a business division for a minimum period of 2 years is a pre -requisite for consideration for promotion. Officers who have not completed the full 2 years tenure of the line assignment but are otherwise eligible for consideration for promotion to MMG Scale III would have to be placed in the line assignment position for a minimum period of not less than six months so as to complete or exceed a minimum period of two years service in the line assignment. Rural/Semi Urban Service in a Branch: As approved by the Executive Committee of the Central Board at its meeting held on 21.10.1989, it was advised that as per the Government of India guidelines, all officer JMG Scale I and MMG Scale II are required to put in the undernoted minimum stipulated service in a Rural ro Semi Urban branch before they are considered for promotion to MMG Scale II and MMG Scale III.