R A BANGA Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE issue involved in the case is the extent of entitlement of a Bank employee to leave encashment, post his retirement when during his service, he had been kept out of service. The petitioner's contention is that the Rule that provides for an accumulation of privilege leave during the service would normally be for 240 days except where the leave had been applied for and it had been refused. This would not apply again where an officer retired from the Bank service and he was eligible to be paid a sum equivalent to the amount of any period of leave that he had accumulated. The portion of privilege leave that can be allowed to be carried over should be availed as earliest possible within three months of the following year, but if this is not possible for any reason and the officer is due to retire, he would be permitted to encash the full to the credit of his privilege leave account even if the same exceeds 240 days. The counsel refers to the instructions contained in a manual in paragraph 16.3.1.

(2.) THE reference to this rule was denied by the respondents by reference to other provisions which were diametrically opposite to the petitioner's contention and, therefore, I had directed the counsel appearing on behalf of the respondents to file an affidavit through an Officer giving specific references to an authenticated circular relating to the provisions for privilege leave and the extent of leave encashment. The circulars issued by the Bank on 27.08.1998 and 16.06.2001 were filed pursuant to the directions of this Court and taken on record as Annexures R -5 and R -6. The rule relating to encashment of the privilege leave in terms of Rule 38 of the State Bank of India Officers Service Rules (for short, 'SBIOSR') is contained below: -

(3.) I would find the answer could be elicited only by posing a question of what a privileged leave or an earn leave connotes, particularly in the Banking industry, being one of the subjects of reference specifically brought before the Tribunal headed by Sr.Justice Kantilal T.Desai (constituted on 21.3.1960 after the expiry of the Sastri Award, as modified) at the instance of the All India Banking Employees Association. Clause 9 of the Desai Award (National Industrial Tribunal decision) dealt with privilege leave. The relevant portions are reproduced for clarity: