PALAMAU KSHETRIYA GRAMIN BANK ADHIKARI SANGH Vs. PALAMAU KSHETRIYA GRAMIN BANK THROUGH ITS CHAIRMAN AND ANOTHER

JUDGEMENT

(1.) The petitioner being an Association of Officers of Palamau Kshetriya Gramin Bank, have filed this writ application, praying for quashing of part of the notification dated 1.12.2001 (Annexure-8), whereby the reimbursement of medical expenditure has been fixed for the employees of the Palamau Kshetriya Gramin Bank unequal to the employees of the Sponsor Bank namely, the State Bank of India. Claiming parity with the employees of the Sponsor Bank in respect of medical reimbursement, the petitioner has claimed that the impugned portion of Annexure-8, is illegal, arbitrary and contrary to the directions contained in the Award dated 30.4.1990 passed by the National Industrial Tribunal (NIT).

(2.) Respondents by filing counter-affidavit, have denied and disputed the petitioner's claim and have counter asserted that the impugned notification is only by way of a communication of the decision taken by the Sponsor Bank namely, the State Bank of India, which in turn, is based upon a notification issued by the Central Government in exercise of its powers under the provisions of section 17(1) of the Regional Rural Banks' Act, 1976.

(3.) In the light of the stand taken by the respondent Bank and for better appreciation of the dispute, the backgrounds facts of the petitioner's case has necessarily to be noted. The Rural Banks including the Palamau Kshetriya Gramin Bank (referred to as Kshetriya Bank) (Respondent No. 1), were created by the Central Government notification under the provisions of section 2 of the Regional Rural Bank Act, 1976 The State Bank of India became the Sponsor Bank of respondent no. 1. Resentment was expressed by the employees of the Rural Banks on account of disparity in their service conditions as compared to the service conditions applied to the employees of the Sponsor Bank. Such grievance raised on the claim of equal pay for equal work, was referred to the Supreme Court. The Apex Court referred the matter to the National Industrial Tribunal (NIT). The NIT declared its Award on 30.4.1990, holding that the employees of the Regional Rural Banks would be entitled to claim parity with the officers and other employees of Sponsor Banks in the matter of pay scales, allowances and other benefits. The Tribunal directed that the Award should be given effect to from 1.9.1987. However, with regard to equation of posts and consequent fixation of the new scales of pay, allowances and other benefits for officers and employees of the Regional Rural Banks, at par with the officers and other employees of comparable level in corresponding posts in Sponsor Banks and their fitment into new scales of pay as are applicable to the officers of the Sponsor Bank, the Tribunal held that it is a matter which has to be decided by the Central Government in consultation with such authorities as it may consider necessary. Since, from the date when Award was made effective with effect from 1.9.1987, the employees of the Nationalised Commercial Banks, were getting their pay scales on the basis of the 5th bipartite settlement and by implementation of the NIT Award, the employees of the Regional Rural Banks were also given the benefit of the 5th bipartite settlement on the basis of which, pay structure of the Nationalised Commercial Banks had been determined. In consonance with the directions contained in the NIT Award of 1990, the National Bank for Agricultural and Rural Development (NABARD) issued a direction on 19.2.1991 to all the Rural Banks, declaring therein that allowances and other benefits which are provided in the Bipartite settlement in the Service Regulations of the concerned Sponsor Banks, be extended to the employees and officers of the Regional Rural Banks respectively. It was also announced in the direction of the NABARD that Government of India has decided to implement the NIT Award and has also accepted the recommendations of the Equation Committee regarding equation of posts in the Rural Banks with those of the Sponsor Banks. By a notification dated 11.7.1991 (Annexure-3) a similar direction was issued by the Ministry of Finance, Department of Economic Affairs (Banking Division) of the Central Government, addressed to the Chairman of the Regional Rural Banks for implementation of the Award. In the aforesaid Central Government directives, emphasis was placed vide Clause-14, declaring therein that "allowances, special allowances and other benefits which are provided in the Bipartite settlement and service Regulation of concerned Sponsor Banks be extended to the employees / officers of Regional Rural Banks respectively". The allowances and other benefits made effective both retrospectively and prospectively as detailed in Clause-15 of the directives, include the benefits of reimbursement of medical expenses, hospitalization and other benefits as per hospitalization scheme. In compliance of the above direction issued by the Central Government, through the Ministry of Finance, the Respondent Kshetriya Bank issued a direction for implementation of the Central Government directives declaring that the officers of Kshetriya Bank would get 100% medical reimbursement of hospitalization charges and their wards will get 75%. Consequent upon the notification, members of the petitioner Association began to receive the medical benefits at par with the employees of the Sponsor Bank