High Court Karnataka High Court

State Bank Of Mysore vs K S Vasudeva S/O Kolar Subbarao on 12 November, 2010

Karnataka High Court
State Bank Of Mysore vs K S Vasudeva S/O Kolar Subbarao on 12 November, 2010
Author: J.S.Khehar(Cj) And Patil
WA.2 1 32 / 2006

IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 12'?" DAY OF NOVEMBER, 2010

PRESENT

THE HON'BLE MR.J.S.KHEHAR, CHIEF     

THE HONBLE    
W.A.No.21£;:2:vi2po6A'ts 3;    

BETWEEN:

State Bank of     ,  
A body constit:1"t¢d~--m*1d'€:1<:thé=.,_ '  »
State Bank Cf I1-i_dia (Si1bsid.iary"Ban'};s]'
Act, 1959,...rep-;=esem;e.d by its ' 
Managing Difesétor,   --
New Chief Managef-.{Pers'01}11'e1) '

Sn' Jagac1ssh--s.Pa:i1;   

Head 0fficé,._Kt.G.Road, ~ 

Banga.1Qre--56O _00~9..:--    APPELLANT

'3 V'  (By  Na;asi1tiha11;'Adv.)

 
Ageciabtrjut  years,

 _ q_.S/0 Koialfisubbarao,
V  V V.?0rking' as Senior Assistant
_ at State Bank of Mysore,
A . :3IB»--Department, Bangaiore
   Branch, Avenue Road,
A  ..Banga1ore--56O 002.  RESPONDENT

A (By Sri Ajit Kakyan for M/s. Law Mansion]

WA.2 132 /2006

This Writ Appeal is filed under Section 4 of the Karr1’ataka
High Court Act, praying to set aside the order passedg”in’-the

Writ Petition No.43139/2001 dated 4.11.2008 and et.c_:_.g’ . ‘ A. V

This Appeal coming on for Final Disposal

B.S.Patil. J., delivered the following:

JUDGMEN’:£?__

1. Appellant–Bank is challenging the ‘dated-if

04.11.2006 passed by the .1earned.mSinglea pgJu.dg”e.’__ByEthe order
under challenge, the writ 1-gspondent herein
is allowed. A direction is” to accept the
application the writ petitioner
and to benefits from the date of
such > 1

2. The as a Senior Assistant under

_v the appeliant–Ba’1’lk_V_.VV SA Scheme called State Bank of Mysore

‘ff<etire_rnent Scheme was introduced on 27.01.2001

of voluntary retirement to the employees of

the Bank on the terms and conditions stipulated therein. One

the conditions of the Scheme contained in Clause 10[j) was

increspect of employees who were Office bearers / Directors

'of/the State Bank of Mysore Employees Housing Co–operative

ty Limited/State Bank of Mysore Co–operative Credit

WA.2 132/2006
3

Society/ State Bank of Mysore Consumer Co–operative Socieqr,
the acceptance of their application for voluntary retirement
shall be subject to producing No Objection/No Due Certificate

from the respective organisation. According to the._”ap_’p.ell–ant–

Bank, as the respondent was a Director of fer

Mysore Employees Housing Co–operative_ Soc_i’ety”‘_and_als” » up

he was not issued with No Due/No :’Obje_’c’tion’tiCe’r1ificai.§5..ypyithe

said Society as on the last datefixedllforll filingitheapplicationC’

for voluntary retirement, he was___not:eligible.”to– the benefit.

3. The appe1lant~bank a communication

dated respondent stating that the No
Objection the Honorary Secretary could

not be. accepted as..the’v.same was required to be signed by the

orzany” o”tl*1’er person authorised by the Board of

thelS*ociety. This communication was challenged in

WlP,,.l§Io.9VO5§”§}{T2il)01. The said writ petition was dismissed. Writ

Cx_Appea1*~l§lo;..1776/2001 filed against the said order, wherein the

of Clause 100) of the Scheme was also challenged came

tolgbe disposed of on 06.08.2001 directing the appellant bank to

pass appropriate orders on the application filed by the

respondents within a stipulated time. It is necessary to refer to

WA.2 132 /2006
4

the said order passed by the Division Bench which is produced
at Annexure–E2. The Division bench while referring to the
representation dated 10.06.2001 submitted by the respondent

to the Bank stating that he had resigned from the post .iof.l_O–ffice

bearer/Director of the Society and hence there

consideration of his application without gNoV_

Due/No Objection Certificate, has h_e1d_fin:Vparagraph?-l3,_,Qf”ithe

said order that from the wordinggof the. Rule it:uwas«–..Clear

only at the stage of acceptance”-of’ the application filed for
voluntary retirement the’–«.1z\i’o_l3lue,gf’Objection Certificate Was

to be produced. lt,_has been:._fu.rtlier,ppointedlout that a rational

interpretation necessarily indicate that if in

the rneanwhilet had ceased to be an Office bearer,

then,,._%;thei’~ requirerrientpiof producing No Due/No Objection

(A’.ert.ifi<:a_te:.wovu–ld_ not arise, nor would there be any bar to the

point of time of the application for Voluntary

V _ retire;me1*1t.as"llit was at the stage of acceptance alone that the

0 .rparticular "certificate was required to be produced. In the light

-_of._the°above observations, the Division Bench found that it was

unnecessary to consider the validity of the Rule which was

” challenged before it and disposed of the appeal in terms stated

ein.

WA2132/2006
5

4. This order passed by the Division Bench has attained
finality. It is thereafter that the appe11ant–bank claims to have
got certain clarification from the Society to the effect that the

resignation submitted by the respondent on 19.03.2jO£l:”i”–.VVthe

post of Director and to the post of Honorary

accepted. Based on such clarifi_cation ffroin the . pg

Society, the appellant–bank passed the

rejecting the request made by’~the respondent.’ fQ;….yol’untai*yf’

retirement. _ K _ V

5. The said order dated questioned by the

responclventffbefore Judge in the writ petition.
The sarne has been A:.fja1loiwe’d«.directing the bank to accept the

application filed_fby..the’respondent seeking voluntary retirement

‘ V’ to’ gra.nt’vr–consec«;iien’tiaI terminal benefits. This order is now

cfialglellgiedgjinfth:is:..Appea1.

69 A “-.lLearn”e;d counsel for the appellant contends that the order

-V passed. the learned Single Judge is unsustainable as the

if dtproductioln of No Due Certificate by the respondent was a

mandatory requirement and mere submission of resignation

“Without its acceptance by the Society of which he was a

if Director could not have the effect of terminating his position as

s

WA.2l32/2008
6

a Director in the Society. According to him, as the resignation
submitted had been rejected by the Board of Directors of the
Society, the respondent was required to produce the_.l\_lo Due

Certificate. –_

7. Learned Counsel for the respondent has SJ’E:1’°O1],:0;lv;’)7._._l:’t3:.fl1J[C(i

the contentions urged placing reliance on the..findings:’1’ecord’cd

and the reasons assigned by the leaicnedsiiagle ll,

8. Having carefully considered theV’con’tentio’n’sj_urgedjlbyihe:

learned counsel for the parties on of the materials
on record, We find that._,_t’n.e a’ppelAlVan.tuhas not made out any

valid and jiistifiable interfere with the order passed

by the learned Singlea The order passed by the Division

Benc},§igon~O6.0é§.’2,fl):Cl_l attained finality. As adverted to by

1.18:*ElDUVC.’A.fi’l.f;;A”DiViSlOI1 Bench has found after interpreting the

iR1.1le–._that:ltj:e requirement of producing the No Due Certificate

V _ would arise only at the stage of acceptance of the application for

yoliintary’ ‘retirement and as the respondent– employee had

‘ceased to be an Office bearer as on the date the application was

-retlguired to be accepted, production of No Due Certificate did

” not arise and therefore, there was no bar for acceptance of the

Zpplication for Voluntary retirement. In the light of the clear

WA.2i32/2006

observations and directions issued in the order passed by the
Division Bench and in the absence of the bank placing any
material before the Division Bench showing that the resignation

submitted by the respondeni:–empioyee had been*’*i’ej_ec_t_ed,;:Vthe

appe11ant–bank. cannot be permitted to $_uch

contention now. The Bank was not justified in into 3

any correspondence with the Societyafter suffering an orderfbyp

the Division Bench on O6.08.20C)’i<1:"i.

9. Moreover. the learned Single’-Judge has rightly? referred to

the effect of Section V of 2{_'[}i¢é”v«_Ka’ri3.ataka Co-operative

Societies Act. .aeXtraeti11g the same and holding that a

member may resign_ his “membership in writing under his hand

anddieivivered to Chief Executive, whereupon his seat shall

on the expiry of 15 days from the date of such

f’deIi{r_¢p;yv”‘einlessfvsrithdrawn eariier. As rightly heid by the

V . learned Judge, there was nothing to show that the

{resignation submitted by the respondent–emp1oyee was rejected

f and’ the same was communicated to the writ petitioner.

‘”8”.f In the Eight of the judgment rendered by the Division

is Bgnch referred to herein above and the provisions contained

WA.2 132 /2006
8

under Section 29-B of the Karnataka Co–operative Societies Act,
1959, we find that the order passed by the learned Single Judge
does not call for interference. Hence, the writ appeal being

devoid of merits is dismissed.

  it    iChé;te£ii 3 was

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