MAHENDRA BADAL Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONERS are employees of now Bihar Kshetriya Gramin Bank, Munger. They have challenged the communication dated 3.7.2006 which is contained in annexure -10 to the writ application. By virtue of this communication the General Manager has informed all the Branches of the Bank not to pay certain allowances and facilities to the employees. Petitioners term the decision as arbitrary.

(2.) CONTENTIONS of petitioners are that by virtue of certain decisions given by the Apex Court salary etc. of the employees of Gramin Banks were ordered to be made at par with the sponsor bank. They contend that due to judicial intervention parity in the pay scale etc. was brought about. This was given statutory status and implemented by Central Government of India by issuing necessary notification in this regard while exercising powers under sec. 17(1) of the Regional Rural Bank Act, 1976. Petitioners have brought on record various evidence and communications in support of the above facts but then basically that is not the dispute in the present case. The main background which has given rise to the present litigation is that the management of the respondent bank after amalgamation of three different rural banks reviewed their working. It was through this review that the new management discovered some anomalies in the payment being made to the employees of certain allowances/facilities/ benefits to a particular bank only i.e. Bhagalpur Banka Kshetriya Gramin Bank.

(3.) LEARNED Senior counsel appearing on behalf of petitioners has submitted that the action of the bank is in conflict with the notification which had been issued by the Government of India under section 17(1) of the Regional Rural Bank Act, 1976. He submits that the pay and allowances which were being given to them was in confirmity with these statutory notification. That being so it was not open to the bank in question to undo the same by administrative order. He further submits that the benefit in question was extended to the employees of the bank after a conscious decision in this regard and a notification issued which is contained in annexures 8 and 8/1. The benefit extended in the year, 2002 is suddenly being sought to be withdrawn without any notice or show cause to the petitioners.