SBI OFFICER ASSOCIATION Vs. CHIEF GENERAL MANAGER CBI

JUDGEMENT

(1.) This writ petition is filed by State Bank of India Officers Association, Himachal Pradesh Zonal Unit through its Deputy General Secretary Shri B.K.Sharma, seeking the following reliefs:

(2.) It is the case of the petitioners' Association that its members are employees of the State Bank of India. The terms and conditions of appointment and service of Officers in the Bank are governed by State Bank of India Officers' Service Rules framed under sub-section (1) of Section 3 of the State Bank of India's Act, 1955 (hereinafter referred to as 'the Act' for short). According to Rule 23(x), an officer serving in a place mentioned in column (i) of the Table given therein shall be eligible for a Hill and Fuel Allowance as mentioned in Column (ii) of the Table against that place. Officers working in Special areas designated by the Central Board or the Executive Committee are entitled for Special Area Allowance in accordance with Rule 23(ii). The petitioners' Association has stated that while approving the Special Area Allowance a negotiation was held between the Indian Banks Association and Officers Organization whereby Special Area allowance was sanctioned in favour of the petitioners' Association and others by the Executive Committee of the Central Board vide its communication dated December 7, 1990, a copy whereof is annexed with the writ petition alongwith its Annexures as P-2, P-3 and P-4. As per the decision the Special Area Allowance was sanctioned in favour of the members of the petitioners Association and others on and w. e.f. January 1, 1990 in addition to Hill and Fuel Allowance ever since 1979. The members of the petitioners Association started drawing Special Area Allowance @ Rs. 100, Rs. 375 and Rs. 650 per month as is reflected at item No. 12 of Annexure P-3. According to the petitioners' Association, without the approval of the competent authority the Chief General Manager, State Bank of India, Chandigarh, respondent No. 1 herein on the instructions and guidelines of the Chairman, State Bank of India, Central Office, Bombay, respondent No.2 and the Union of India, Ministry of Finance, Banking Division, respondent No. 3 herein, abolished the grant of Hill and Fuel Allowance to the members of the petitioners Association from the date the Special Area Allowance was allowed to them i.e. on and w.e.f. January 1, 1990 retrospectively, though the members of the petitioners Association have continued to draw the Hill and Fuel Allowance on the strength of the decision arrived at and conveyed by the competent Authority vide Annexure P-2. In supersession of the earlier decision dated December 7, 1990 (Annexure P-2) another decision was taken by the Executive Committee of respondent No. 2 modifying the grant of Special Area Allowance. The communication of the said decision is marked as Annexure P-5.

(3.) The petitioners Association filed a Civil Suit before the senior Sub Judge (Court No. 3) at Shimla in the month of December, 1991 against the decision of the Executive Committee of respondent No. 2. Alongwith the suit an application for stay of recovery of the amount paid to the members of the petitioners Association was also filed under Order 39 Rules 1 and 2 CPC. Ex-pane stay was granted by the trial Court which was later on vacated. Being aggrieved the petitioners Association filed appeal before the learned District Judge, Shimla which was finally dismissed on August 18, 1993. According to the petitioners Association, its case was wrongly pleaded before the Civil Court seeking protection of the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 as the provisions of the said Act were not applicable to the employees of the State Bank of India and as such the petitioners Association has become the victim of wrong pleadings before the trial Court as well as before the learned District Judge. The Officers whose service conditions are governed under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 were also sanctioned Special Area Allowance by the respective banks after the Bipartite agreement was arrived at. The Board of Directors of a corresponding new Bank under Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 may after consultation with the Reserve Bank of India and with the previous sanction of the Central Government make regulations not inconsistent with the provisions of 'the Act' or any scheme made therein to provide for all the matters for which provisions is expedient for the purpose of giving effect to the provisions of the Act. Where as in the case of other scheduled banks the service conditions can be altered with the previous consent of the Reserve Bank of India and the Central Government, no such corresponding provision has been provided in the State Bank of India Act, 1955 and the Rules framed thereunder, under which service conditions of the Officers are required to be varied with the approval of the Central Government. It is alleged that it is only the Central Board of Directors which is empowered to determine the conditions of service in respect of the Members of petitioners Association.