{"id":37480,"date":"2010-02-17T00:00:00","date_gmt":"2010-02-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chairman-magadh-gramin-bank-anr-vs-madhya-bihar-gramin-bank-ors-on-17-february-2010"},"modified":"2018-08-09T09:59:24","modified_gmt":"2018-08-09T04:29:24","slug":"chairman-magadh-gramin-bank-anr-vs-madhya-bihar-gramin-bank-ors-on-17-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chairman-magadh-gramin-bank-anr-vs-madhya-bihar-gramin-bank-ors-on-17-february-2010","title":{"rendered":"Chairman, Magadh Gramin Bank & Anr vs Madhya Bihar Gramin Bank & Ors on 17 February, 2010"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Chairman, Magadh Gramin Bank & Anr vs Madhya Bihar Gramin Bank & Ors on 17 February, 2010<\/div>\n
Author: T Thakur<\/div>\n
Bench: Markandey Katju, T.S. Thakur<\/div>\n
                                                         Reportable\n\n\n              IN THE SUPREME COURT OF INDIA\n\n              CIVIL APPELLATE JURISDICITION\n\n               CIVIL APPEAL NO. 4194 OF 2003\n\n\nChairman, Magadh Gramin Bank & Anr.           ...Appellants\n\n     Versus\n\n\nMadhya Bihar Gramin Bank & Ors.               ...Respondents\n\n(With C.A. No.4483 of 2003)\n\n\n                      JUDGMENT\n<\/pre>\n
T.S. THAKUR, J.\n<\/p>\n<\/p>\n
1.   These appeals by special leave arise out of an order<\/p>\n
passed by the High Court of Judicature at Patna whereby LPA<\/p>\n
No.84 of 2003 filed by the appellant-bank has been dismissed<\/p>\n
in limine and the order passed by a Single Bench of that Court<\/p>\n
allowing Writ Petitions No.7367 of 2001 and 5924 of 2002<\/p>\n
affirmed. The controversy in the appeals lies in a narrow<\/p>\n
compass but before we come to the precise issue that falls for
\n                                 2<\/span><\/p>\n
our consideration, we may briefly set out the facts giving rise<\/p>\n
to the proceedings before the High Court and the present<\/p>\n
appeals before us.\n<\/p>\n<\/p>\n
2.   In South Malabar Gramin Bank Vs. Coordination<\/p>\n
Committee of South Malabar Gramin Bank Employees<\/p>\n
Union (2001 (1) SCC 101) this Court, inter alia, held that the<\/p>\n
Central Government was vested with the power to determine<\/p>\n
the pay structure of the employees working in the Regional<\/p>\n
Rural Banks in accordance with second proviso to sub-section<\/p>\n
(1) of Section 17 of RRB Act, and that it should try to maintain<\/p>\n
parity between the pay structure of the employees of the RRBs<\/p>\n
and those working in the nationalized commercial banks. As a<\/p>\n
sequel to the said direction the Government of India, Ministry<\/p>\n
of Finance, Department of Economic Affairs (Banking Division)<\/p>\n
issued   notification   dated   11th   April,   2001,   inter   alia,<\/p>\n
determining the pay scales of the employees of RRBs and<\/p>\n
granting to them the benefit of 6th and 7th Bipartite Settlements<\/p>\n
and Officers Wage Revision w.e.f. 1st November, 1992 and 1st<\/p>\n
November, 1997 respectively. The notification attempted to
\n                                3<\/span><\/p>\n
bring at par the pay scales of the RRB employees and those of<\/p>\n
their counterparts in other nationalized banks.     It was then<\/p>\n
followed by a letter dated 25th April, 2001, defining the<\/p>\n
expressions “Basic Pay and Dearness Allowance” used in the<\/p>\n
notification. The clarification was to the effect that “Basic Pay<\/p>\n
and the Dearness Allowance” would mean “Basic Pay,<\/p>\n
Dearness Pay, Dearness Allowances, ad hoc or additional D.A.;<\/p>\n
interim relief or any other allowance which form part of pay or<\/p>\n
D.A.”\n<\/p>\n<\/p>\n
3.      Pursuant to the above, the appellant-bank issued a<\/p>\n
circular dated 16th May, 2001, giving to its employees the<\/p>\n
benefit of what is known as “computer increment” as per 6th<\/p>\n
and 7th Bipartite Settlements and Officers Wage Revision. The<\/p>\n
circular envisaged that each staff member shall file an<\/p>\n
undertaking that he\/she shall refund in lump the excess<\/p>\n
amount drawn by them in case a contrary decision is received<\/p>\n
from the Government of India\/NABARD sponsor bank. This<\/p>\n
circular was some time later recalled by an order dated 5th<\/p>\n
June, 2001 and the benefit of computer increment and
\n                               4<\/span><\/p>\n
automatic switch over from scale II to scale III granted to the<\/p>\n
employees of the appellant-bank withdrawn. The order further<\/p>\n
directed that the amount already paid shall be recovered from<\/p>\n
the employees concerned.\n<\/p>\n<\/p>\n
4.   Aggrieved by the order aforementioned, the employees-<\/p>\n
association filed Writ Petition No.7367 of 2001 challenging the<\/p>\n
validity of the withdrawal order on several grounds. While the<\/p>\n
said writ petition was still pending, this Court passed an order<\/p>\n
dated 7th March, 2002 in All India Regional Rural Bank<\/p>\n
Officers Federation and Ors. Vs. Govt. of India and Ors.<\/p>\n
2002 (3) SCC 554 whereby paragraphs 2 and 3 of the<\/p>\n
notification dated 11th April, 2001 were quashed and the<\/p>\n
Government directed to issue a fresh notification for proper<\/p>\n
implementation    of   the   judgment   of   this   Court.   The<\/p>\n
Government of India accordingly appears to have examined<\/p>\n
the matter and issued a fresh notification dated 17th April,<\/p>\n
2002, para 5 whereof provides as under:\n<\/p>\n<\/p>\n
          “All other allowances should be immediately
\n          revised, if not already revised pursuant to
\n                               5<\/span><\/p>\n
          order dated 11.4.2001 by respective sponsor
\n          banks after negotiations with RRB employees.”\n<\/p><\/blockquote>\n
5.   In the writ petition filed by the association before the<\/p>\n
High Court, the Bank filed an affidavit in reply, inter alia,<\/p>\n
stating that the matter relating to the grant of “computer<\/p>\n
increment”, “computer allowance” and “automatic switchover<\/p>\n
from scale II to scale III” was pending consideration of the<\/p>\n
Government of India which is the authority competent under<\/p>\n
Section 17 of the RRB Act. A learned Single Judge of the High<\/p>\n
Court of Judicature at Patna, however, allowed the Writ<\/p>\n
Petition Nos.7367 and 5924 of 2002 by a common order dated<\/p>\n
17th December, 2002 and directed the appellant-bank to act<\/p>\n
upon the decision dated 17th April, 2002, taken by the<\/p>\n
Government of India, Ministry of Finance, Department of<\/p>\n
Economic Affairs (Banking Division) in its letter and spirit and<\/p>\n
to pay to the employees the benefits admissible to them in<\/p>\n
accordance with law. The said direction proceeded on the<\/p>\n
premise that the decision of the Government of India dated<\/p>\n
17th April, 2002, particularly, clause (5) of the notification<\/p>\n
issued by the Government envisaged grant of all allowances
\n                               6<\/span><\/p>\n
admissible to the employees of the nationalised banks to those<\/p>\n
serving in the RRBs. A Letters Patent Appeal preferred against<\/p>\n
the said order, having been dismissed summarily, the<\/p>\n
appellant-bank has filed appeal to this Court by special leave<\/p>\n
as already noticed above.\n<\/p>\n<\/p>\n
6.   Appearing for the appellant-bank, Mr. Dhruv Mehta,<\/p>\n
learned counsel, submitted that so far as grant of automatic<\/p>\n
switch over from scale II to scale III was concerned, the issue<\/p>\n
stood finally resolved by the Government and NABARD who<\/p>\n
have now taken a decision to extend the facility of automatic<\/p>\n
switch over to the employees working in the RRB w.e.f. 16th<\/p>\n
December, 2002. In support of his submissions, Mr. Mehta<\/p>\n
drew our attention to a letter dated 11th April, 2002 addressed<\/p>\n
by NABARD to the Government of India suggesting certain<\/p>\n
modalities and conditions for the grant of automatic switch<\/p>\n
over facility to the officers of RRBs and order dated 6th<\/p>\n
January, 2003 issued by the said bank pursuant to the<\/p>\n
decision taken by the Government of India on the subject. A<\/p>\n
careful reading of the said order would show that the
\n                                 7<\/span><\/p>\n
Government of India and NABARD have agreed to the grant of<\/p>\n
automatic switch over from scale II to scale III to the officers of<\/p>\n
RRBs w.e.f. 16th December, 2002 subject to the conditions<\/p>\n
stipulated in the said order. Mr. Mehta argued, and in our<\/p>\n
opinion rightly so, that the facility of automatic switch over<\/p>\n
from scale II to scale III shall stand granted to the officers<\/p>\n
w.e.f. 16th December, 2002 subject to the conditions stipulated<\/p>\n
in the said order and that the directions issued by the High<\/p>\n
Court can subject to that modification be affirmed.<\/p>\n
7.   Mr. Rakesh Dwivedi, learned senior counsel, appearing<\/p>\n
for the respondents-writ petitioners were agreeable to the<\/p>\n
disposal of these appeals subject to the condition that the<\/p>\n
payment already made to the employees shall not be recovered<\/p>\n
from them for the period earlier to 16th December, 2002. We<\/p>\n
order accordingly.\n<\/p>\n<\/p>\n
8.   The only other question that had fallen for consideration<\/p>\n
before the High Court and that need be noticed by us relates<\/p>\n
to the grant of computer increment to the employees of the
\n                               8<\/span><\/p>\n
RRBs. Mr. Tripathi, Additional Solicitor General, appearing for<\/p>\n
the Government of India, has placed before us a compilation of<\/p>\n
documents comprising a letter dated 6th January, 2003 from<\/p>\n
the Government of India to NABARD approving the consensus<\/p>\n
of the bank as set out in NABARD’s letter dated 23 rd July,<\/p>\n
2002. A perusal of the said letter would show that the grant of<\/p>\n
computer increment to the employees\/officers of RBBs was<\/p>\n
not favoured by the banks and the NABARD which consensus<\/p>\n
was agreed to by the Government of India thereby effectively<\/p>\n
declining   the   grant   of   computer   increment    to   the<\/p>\n
employees\/officers of the RRB. It was contended by Mr.<\/p>\n
Tripathi and Mr. Mehta that the Government of India had<\/p>\n
taken a conscious decision on the subject leaving no manner<\/p>\n
of doubt relating to the admissibility of computer increment to<\/p>\n
the employees\/officers of RRBs.\n<\/p>\n<\/p>\n
9.   The material placed on record was not disputed by Mr.<\/p>\n
Dwivedi. Mr. Dwivedi fairly conceded that the Government’s<\/p>\n
decision, as is evident from the documents placed on record,<\/p>\n
does indeed deny the said benefit to the employees of RRBs. It
\n                               9<\/span><\/p>\n
was, however, argued by the learned counsel that the decision<\/p>\n
of the Government of India was arbitrary and ought to be set<\/p>\n
aside by permitting the respondents to amend the writ<\/p>\n
petitions suitably or by remanding the matter back to the High<\/p>\n
Court. We are not impressed by that submission. We say so<\/p>\n
because the legality of the decision taken by the Government<\/p>\n
was not in question before the High Court in the writ petitions<\/p>\n
filed by the respondents. We, therefore, see no reason why we<\/p>\n
should allow the employees to challenge the said decision in<\/p>\n
the present proceedings when the High Court did not have an<\/p>\n
occasion to examine the matter in the writ petitions heard and<\/p>\n
disposed of by it. Since the Government’s decision denies the<\/p>\n
benefit of computer increments the direction issued by the<\/p>\n
learned Single Judge and upheld by the Division Bench in<\/p>\n
appeal to the extent requiring the respondent-bank to grant<\/p>\n
the said benefit cannot be sustained. We, however, make it<\/p>\n
clear that this order shall not prevent the respondent-<\/p>\n
association or any member thereof from challenging in<\/p>\n
appropriate proceedings the validity of the decision taken by<\/p>\n
the Government of India on all such grounds as may be open
\n                                10<\/span><\/p>\n
to them but subject to all just exceptions including delay and<\/p>\n
laches. These appeals are accordingly allowed in part and the<\/p>\n
orders passed by the High Court to the extent indicated above<\/p>\n
set aside. The parties are left to bear their own costs.<\/p>\n
                                      ……………………………J.\n<\/p>\n
                                      (MARKANDEY KATJU)<\/p>\n
                                      ……………………………J.\n<\/p>\n
                                      (T.S. THAKUR)
\nNew Delhi
\nFebruary 17, 2010<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Chairman, Magadh Gramin Bank & Anr vs Madhya Bihar Gramin Bank & Ors on 17 February, 2010 Author: T Thakur Bench: Markandey Katju, T.S. Thakur Reportable IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICITION CIVIL APPEAL NO. 4194 OF 2003 Chairman, Magadh Gramin Bank & Anr. …Appellants Versus Madhya Bihar […]<\/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-37480","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nChairman, Magadh Gramin Bank & Anr vs Madhya Bihar Gramin Bank & Ors on 17 February, 2010 - Free Judgements of Supreme Court & 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\/chairman-magadh-gramin-bank-anr-vs-madhya-bihar-gramin-bank-ors-on-17-february-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chairman, Magadh Gramin Bank & Anr vs Madhya Bihar Gramin Bank & Ors on 17 February, 2010 - 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