{"id":216893,"date":"1996-02-19T00:00:00","date_gmt":"1996-02-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/bank-of-baroda-vs-rajender-pal-soni-on-19-february-1996"},"modified":"2018-07-06T00:56:47","modified_gmt":"2018-07-05T19:26:47","slug":"bank-of-baroda-vs-rajender-pal-soni-on-19-february-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/bank-of-baroda-vs-rajender-pal-soni-on-19-february-1996","title":{"rendered":"Bank Of Baroda vs Rajender Pal Soni on 19 February, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Bank Of Baroda vs Rajender Pal Soni on 19 February, 1996<\/div>\n<div class=\"doc_bench\">Bench: K. Ramaswamy, G.B. Pattanaik<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  4390 of 1996\n\nPETITIONER:\nBANK OF BARODA\n\nRESPONDENT:\nRAJENDER PAL SONI\n\nDATE OF JUDGMENT: 19\/02\/1996\n\nBENCH:\nK. RAMASWAMY &amp; G.B. PATTANAIK\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>1996 (2) SCR 837<\/p>\n<p>The following Order of the Court was delivered :\n<\/p>\n<p>Leave granted.\n<\/p>\n<p>We have heard learned counsel on both sides.\n<\/p>\n<p>It is not necessary to preface the antecedent enquiry conducted against the<br \/>\nrespondent for misconduct by the Traders Bank which was amalgamated with<br \/>\nthe appellant-Bank, Suffice it to state that on June 25, 1986 the<br \/>\nrespondent&#8217;s service was sought to be terminated by issuance of an order on<br \/>\noffering three months&#8217; pay in lieu of the requisite notice. Instead, the<br \/>\nrespondent on even date had tendered his resignation (Ex.P-5) to Traders<br \/>\nBank; transferor-Bank of the appellant had accepted the resignation on July<br \/>\n2, 1986. Consequently, the respondent had returned the cheque of salary<br \/>\noffered to him in lieu of notice on the even date. Under Section 45 of the<br \/>\nBanking Companies Regulation Act, 1949 (for short, the &#8216;Act&#8217;), the scheme<br \/>\nof amalgamation of transferor bank with the appellant bank, with effect<br \/>\nfrom November 20, 1987 (Ex.P-8) was initiated. The Central Government had<br \/>\naccepted the amalgamation under sub-section (7) of Section 45 of the Act<br \/>\nwith effect from the appointed date viz. May 13, 1988. A scheme in that<br \/>\nbehalf was approved by Central Government. Clause 10 of the scheme provides<br \/>\nas under ;\n<\/p>\n<p>&#8220;All the employees of the transferor bank shall continue in service and be<br \/>\ndeemed to have been appointed by the transferee bank at the same<br \/>\nremuneration and on the same terms and conditions of service as were<br \/>\napplicable to such employees immediately before the close of business on<br \/>\n20th November, 1987.&#8221;\n<\/p>\n<p>Para 2 of the notification dated May 12, 1988 issued under Section 45(1)<br \/>\nread with sub-section (2) of Section 45 of the Act envisages, among other<br \/>\nthings undertaking of the liabilities with respect to the pending suits,<br \/>\nappeal or other legal proceedings of whatever nature by or against the<br \/>\ntransferor bank arising as on the prescribed date were allowed to continue<br \/>\non the appellant-Bank thus :\n<\/p>\n<p>&#8220;If on the prescribed date any suit, appeal or other legal proceedings of<br \/>\nwhatever nature by or against the transferor bank is pending, the same<br \/>\nshall not abate, or be discontinued or be in any way prejudicially<br \/>\naffected, but shall subject to the other provisions of this scheme, be<br \/>\nprosecuted and enforced by or against the transferee bank.&#8221;\n<\/p>\n<p>Admittedly, the respondent had filed the Civil suit No. 123 of 1989 which<br \/>\nis now re-numbered as Suit No. 61 of 1993 to recover a sum of Rs. 69,680 as<br \/>\nthe arrears of his pay etc. and also filed Civil Suit No. 122 of 1989 which<br \/>\nis now re-numbered as Suit No. 63 of 1993, on June 3, 1989 for declaration<br \/>\nthat the acceptance of resignation by the Traders Bank, viz., the<br \/>\ntransferor Bank was illegal. Relying upon the notification, the appellant<br \/>\nraised preliminary objection after filing written statement to the<br \/>\nmaintainability of the suit which was rejected by the trial Court. In<br \/>\nrevision No. 595\/94 by order dated March 21, 1995, the Delhi High Court<br \/>\ndismissed the revision summarily,<\/p>\n<p>Even in this appeal the only question is : whether the appellant is liable<br \/>\nto takeover the services of the appellant ? If that finding is recorded in<br \/>\nfavour of the respondent, necessarily the suit of the respondent would<br \/>\nstand maintainable. Section 45 of the Act envisages the power of the<br \/>\nReserve Bank to apply to the Central Government for suspension of the<br \/>\nbusiness of a Banking Company and prepare a scheme for re-constitution or<br \/>\namalgamation. Admittedly, the Traders Bank was amalgamated with the<br \/>\nappellant- Bank by exercise of the power under sub-section (1) read with<br \/>\nsub-section (2) of Section 45 of the Act. The section in that behalf has<br \/>\nbeen accorded by the Central Government in the scheme under sub-section<br \/>\n(7). As seen, clause (10) of the scheme envisages that employees existing<br \/>\nas on November 20, 1987 in the transferor bank, viz., the Traders Bank so<br \/>\ntaken over, shall become employees of the appellant-Bank, Admittedly, the<br \/>\nrespondent was not in service as on that date. Even no suit or proceedings<br \/>\nwas pending against the Traders Bank as on the date. Under those<br \/>\ncircumstances, the question arises : whether the suit is maintainable ?<br \/>\nThis Court in <a href=\"\/doc\/1190978\/\">Chairman, Canara Bank, Bangalore v. M.S. Jasra &amp; Ors., AIR<\/a><br \/>\n(1992) SC 1100 on paragraph 9, has considered the effect of sub-sections<br \/>\n(4) &amp; (5) of Section 45 of the Act and of the scheme framed thereunder<br \/>\nwhich reads and held as under :\n<\/p>\n<p>&#8220;9. Sub-section (5) then specifies the provisions which may be made in such<br \/>\nscheme. It is Cl.(l) and the provisos thereunder of sub-sec. (5) with which<br \/>\nwe are concerned. The opening words in sub-sec. (5) are : &#8216;The scheme<br \/>\naforesaid may contain provisions for all or<\/p>\n<p>any of the following matters &#8230;..&#8217; It is clear that the scheme so<\/p>\n<p>framed under sub-section (4) may contain provisions for all or any the<br \/>\nmatters specified in sub- sec. (5) so that it enables all or any or the<br \/>\nspecified matters to be provided in the scheme prepared under sub-sec. (4)<br \/>\nand the matters specified in the several clauses in sub-sec. (5) do not<br \/>\nautomatically get incorporated in such scheme unless the scheme<br \/>\nspecifically includes any such matter. It means that the matter specified<br \/>\nin Cl.(i) of sub-sec. (5) is not an invariable term to be read in such a<br \/>\nscheme framed under sub-sec. (4) for amalgamation of the banking company<br \/>\nunless it is incorporated specifically in the scheme so prepared. Thus,<br \/>\nsuch a scheme may or may not contain provisions for the continuance of the<br \/>\nservices of all employees of the banking company in the transferee bank as<br \/>\nis specified in Cl. (i). However, if the scheme does provide for this<br \/>\nmatter, then the continuance of the services of the employees of the<br \/>\nbanking company in the transferee bank as provided in Cl. (i) is subject to<br \/>\nthe requirement of the proviso thereunder. In other words, it is not<br \/>\nnecessary that every scheme of amalgamation framed under sub-sec. (4) must<br \/>\nprovide for continuance of services of all the employees of the banking<br \/>\ncompany in the transferee bank, but where such a provision is made, it must<br \/>\ncontain a provision as required by the provisos in Cl. (i). This is clear<br \/>\nfrom the use of the word &#8216;may&#8217; in the opening words of sub-sec, (5) and the<br \/>\nword &#8216;shall&#8217; in the proviso. In effect it means that where the scheme<br \/>\nprovides for continuance of the services of all the employees of the<br \/>\nbanking company in the transferee bank at the same remuneration and on the<br \/>\nsame terms and conditions of service which they were getting or, as the<br \/>\ncase may be, by which they were being governed immediately before the date<br \/>\nof the order of moratorium, then the scheme must contain a provision that<br \/>\nthe transferee bank shall pay or grant not later then the expiry of the<br \/>\nperiod of three years from the date on which the scheme is sanctioned by<br \/>\nthe Central Government same remuneration and the same terms and conditions<br \/>\nof service as are applicable to other employees of corresponding rank or<br \/>\nstatus of the transferee bank subject to the qualifications and experience<br \/>\nof the said employees being the same as or equivalent to those of such<br \/>\nother employees of the transferee bank,&#8221;\n<\/p>\n<p>In U.P. Electricity Board, Lucknow through its Chairman and Anr. v. Radhey<br \/>\nMohan Venna, [1994] Supp. 2 SCC 356, similar question had arisen under the<br \/>\nElectricity Act, It was held that the Board and amalgamated Company are<br \/>\nentitled under that Act to enter into an agreement. Employees existing as<br \/>\non that date and against whom disciplinary proceedings were pending on that<br \/>\ndate could not be deemed to be employees of the Board. In the absence of<br \/>\nany such agreement, it was held that by operation of Section 6(l)(ii) of<br \/>\nthe Electricity Act, the Board was not bound to take such an employee into<br \/>\nthe service.\n<\/p>\n<p><a href=\"\/doc\/930267\/\">In Rashtriya Mill Mazdoor Sangh v. National Textiles Corporation, South<br \/>\nMaharashtra Ltd. and Ors.,<\/a> [1996] 1 SCC 313 similar question had arisen for<br \/>\nconsideration. This Court held that the liability to pay gratuity which<br \/>\nbecame payable to a former employee prior to the taking over of the textile<br \/>\nCompany was of the textile company and not of the Custodian.\n<\/p>\n<p>It is contended by the learned counsel for the respondent that under the<br \/>\nScheme, the assets and liabilities are to be taken over by the appellant-<br \/>\nBank and, therefore, the employment of the appellant is one of the<br \/>\nliabilities. Judicial review being one of the basic features of the<br \/>\nConstitution, he cannot be prevented to avail of the judicial review<br \/>\nagainst the appellant-Bank. We find no force in the contention. As far as<br \/>\nservice conditions are concerned, in view of the specific provision in the<br \/>\nScheme contained in paras 3 and 10 of the notification arrears of salary is<br \/>\na liability to be discharged by the transferor-Bank and not of the<br \/>\nappellant-Bank. Under these circumstances, the suits are clearly not<br \/>\nmaintainable.\n<\/p>\n<p>The appeal is accordingly allowed, the suit stand dismissed. No costs. G.N.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Bank Of Baroda vs Rajender Pal Soni on 19 February, 1996 Bench: K. Ramaswamy, G.B. Pattanaik CASE NO.: Appeal (civil) 4390 of 1996 PETITIONER: BANK OF BARODA RESPONDENT: RAJENDER PAL SONI DATE OF JUDGMENT: 19\/02\/1996 BENCH: K. RAMASWAMY &amp; G.B. PATTANAIK JUDGMENT: JUDGMENT 1996 (2) SCR 837 The following Order of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-216893","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bank Of Baroda vs Rajender Pal Soni on 19 February, 1996 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/bank-of-baroda-vs-rajender-pal-soni-on-19-february-1996\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank Of Baroda vs Rajender Pal Soni on 19 February, 1996 - Free Judgements of Supreme Court &amp; 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