DIWAKAR PRASAD SON OF DWARIKA PRASAD Vs. NALANDA GRAMIN BANK HAVING ITS HEAD OFFICE AT BIHARSHARIF RESPONDENTS (NOW MADHYA BIHAR GRAMIN BANK HAVING ITS HEAD OFFICE AT MINA PLAZA,

JUDGEMENT

(1.) WE have heard learned counsel for the Appellants, Counsel for Madhya Bihar Gramin Bank previously known as Nalanda Gramin Bank which is a Regional Rural Bank having Punjab National Bank as its sponsor/lead bank, at length, on the issue whether Old/New Rules would apply to the Appellants in promotion to Scale -ll post of Area/Sr. Manager.

(2.) THE learned Single Judge by an order dated 31.3.2009 turned down their prayer to be governed by Old Rules considering that the proposal for upgradation of the branches in which the Appellants were working had been rejected on 16.12.1998 by the Board, therefore no vacancy arose during the existence of the Old Rules hence there was no question of the Appellants being governed by the Old Rules. Tracing the history of the case it appears that the Appellants were selected for posts in officer cadre through a competitive examination conducted in the years 1982 -83 by the respondent -Bank. On 28.9.1988 the Banking Division, Department of Economic Affairs framed Rules R.R.B. (Appointment and Promotion) Rules, 1988 for appointment and promotion of officers and other employees in the Rural Banks (hereinafter called the Old Rules). However on 29.7.1998 New Promotion Rules were framed making a major departure from Old Rules in the procedure of promotion to Scale -ll officers in the posts of Area/Sr. Manager by introducing the system of written test and interview instead of seniority -cum -merit (hereinafter called the New Rules).

(3.) THIS led to a number of controversies in various Rural Banks all over the country since the issue of application of Old/New Rules was inextricably linked with upgradation of the Bank and resultant vacancies created on account of such upgradation which in turn was dependent on the financial figures arrived at as on 31.3.1998. It is not necessary to go into the minute details of the letters from the Rural Banks to the lead Bank i.e. Punjab National Bank seeking clarification on this issue. Suffice is to say vide Annexure -6 to the writ petition the lead Bank i.e. Punjab National Bank on 14.12.1999 had concluded that the relevant date for consideration was to be the date on which posts in Scale -ll were created/sanctioned by the Board.