Judgment

Mrs. Sujata V. Manohar, J.-The appellants, representing the State Bank of India have challenged a decision of the Andhra Pradesh High Court setting aside a Circular issued by the State Bank of India dated 28.1.1987 as also a Circular in the same terms dated 7.3.1987, as violating Section 9-A of the Industrial Disputes Act, 1947 read with the Fourth Schedule. The respondents to the present appeal are the State Bank of India Staff Union, Hyderabad Circle and the second respondent who is a person aggrieved by the Circulars.

2. The Rules of Conduct of the Award staff of the State Bank of India which were in force at all material times, provide, inter alia, that “an employee of the bank may not take active part in politics or in any political demonstration, nor may an employee accept office on a Municipal Council or other public body without the prior sanction of the bank”. In respect of officers of the appellant-Bank, prior to 28th of January, 1987, under the State Bank of India Supervising Staff Service Rules, an officer who wanted to contest an election to Parlia­ment, State Assemblies, Municipal Council etc. had to resign from the bank’s service before doing so. In the case o