IMPORTANT POINT
Respondents who are specialist officers cannot claim to fall in the same class or category as generalist officers, namely Probationary Officers and Trainee Officers and thus cannot be given benefit of being placed at the stage of Rs. 860/- in Scale I of Junior Management Grade which is given to Probationary Officer or a Trainee Officer under para 4(2) of the State Bank of India Officers (Determination of Terms & Conditions of Service) Order, 1979.

Headnote:Constitution of India-Articles 14 and 16-Principle of equal pay for equal work (See Paras 17 and 18)-State Bank of India Officers (Determination of Terms and Conditions of Service) Order, 1979-Paras 3, 4 and 6-Junior Management Grade entitled to Scale I-Generalist Officers and Specialist Officers-Probationary Officer and Training Officer falling under Generalist Officers given Scale I-Respondents falling under Specialist Officers category denied Scale I-Rural Development Officers falling under Specialist Officers category extended benefit of Scale I-Respondents filed writ petition for grant of Scale I-Allowed-Bank was directed to consider their claim-Appeal to Supreme Court -Whether the respondents can claim to fall in the same class or category as Generalist Officers viz. Probationary Officers and Trainee Officers? (No)-Decision of Bank that they are not entitled to scale I-Whether arbitrary? (No)-Result-Appeal allowed-Writ petitions dismissed.
       Hel : We have carefully perused the order of the Bank and find that several reasons have been given for non acceptance of the respondents claim. It has been high-lighted that the Probationary Officers/Trainee Officers are being recruited from market/promoted from clerical staff by the bank by means of All India written test and interview to get the best talent from the market and within, with a view to man the Bank s top management in due course. Learned counsel for the respondents submitted that the same is also true of specialist officers. However, it is contended on behalf of the appellant Bank that the generalist officers arc exposed to various assignments including mandatory rural assignments. Unlike them, the services of Assistant Law Officers are utilized as in-house advisors on legal matters in administrative offices. The duties and responsibilities of Probationary Officers/Trainee Officers are more onerous while the specialist officers are not exposed to operational work risk. It is, therefore, quite clear that there exists a valid distinction in the matter of work and nature of operations between the specialist officers and the general category officers. The general category officers are directly linked to the banking operations whereas the specialist officers are not so linked and they perform the specified nature of work, RDOs were given similar fitment as the generalist officers since it was found that they were required to shoulder, by and large, the same duties and responsibilities as Probationary Officers and Trainee Officers in so far as conducting Bank s agricultural advances work was concerned. This was done on the basis of the recommendations of the Bhatnagar Committee and keeping in view the fact that the decision has been taken that there would be no future recruitment of RDOs and the existing RDOs were proposed to be absorbed in general banking cadre. The recruitment of RDOs has been discontinued since 1985. Taking into account the nature of duties and responsibilities shouldered by the respondents the Bank has concluded that the duties and responsibilities of the respondents arc not comparable to the duties and responsibilities of the RDOs, the Probationary Officers or the Trainee Officers. Learned counsel for the respondents submitted that specialist officers are also recruited from the open market and are confirmed after successfully completing the probation of 2 years. Before the Order of 1979 came into force, they were similarly being granted benefit of additional increments at the time of appointment in the same manner as the generalist officers. However, after the order of 1979 they have been deprived of this benefit. Subsequently that benefit was extended to RDOs but not to the respondents and others like them. We have earlier noticed that the RDOs were given the benefit of advance increments on the basis of the report of an Expert Committee which justified their classification with the generalist officers, having regard to the nature of duties and responsibilities shouldered by them. However, on consideration of the case of the respondents, the Bank has reached a different conclusion. The Bank has found that their duties and responsibilities are not the same as those of Probationary Officers/Trainee Officers RDOs. It is no doubt true that the specialised officers render useful service and their valuable advice in the specialised fields is of great assistance to the bank in its banking operations. The officers who belong to the generalist cadre, namely the officers who actually conduct the banking operations and who take decisions in regard to all banking works are advised by the specialist officers. There can be no doubt that the service rendered by the specialist officers is also valuable, but that is not to say that the degree of responsibility and reliability is the same as those of the Probationary Officers, the Trainee Officers, and the RDOs, who directly carry on the banking operations and are required to take crucial decisions based on the advice tendered by the specialist officers. The Bank has considered the nature of duties and responsibilities of the various categories of officers and has reached bona-fide decision that while generalist officers take all crucial decisions in banking operations with which they are directly linked, and are exposed to operational work and risk since the decisions that they take has significant effect on the functioning of the bank and quality of its performance, the specialist officers are not exposed to such risks nor are they required to take decisions as vital as those to be taken by the generalist officers. They at best render advice in their specialized field. The degree of reliability and responsibility is not the same. It cannot be said that the value judgment of the Bank in this regard is either unreasonable, arbitrary or irrational. Having regard to the settled principles and the parameters of judicial interference, we are of the considered view that the decision taken by the bank cannot be faulted on the ground of its being either unreasonable arbitrary or discriminatory and therefore judicial interference inappropriate. (Paras 20 & 21)
       Held consequently : These appeals are accordingly allowed and the impugned judgment and order dated 8th June, 1999 is set aside and the writ petitions preferred by the respondents are rejected. There will be no order as to costs. (Para 22)

JUDGMENT

Bisheshwar Prasad Singh. J.-These appeals by special leave have been preferred by the State Bank of India and are directed against the judgment and order of the High Court of Karnataka at Bangalore dated 8th June, 1999 in Writ Appeal Nos. 2266-69 of 1999 whereby the appeals preferred by the appellant-Bank were dismissed and the order of the learned Single Judge upheld. By the impugned judgment the High Court held that the claim of officers under specialist cadre for grant of benefit of higher starting pay as was given to the Rural Development Officers, required consideration. The Court, therefore, directed the Bank to consider the matter keeping in view the duties and responsibilities of the writ petitioners (respondents herein) which were comparable with the duties and responsibilities of the Rural Development Officers (for short RDOs).

2. A few facts which are not in dispute may be noticed.

3. In the State Bank of India officers are classified and categorized under four grades-the Top Executive Grade, the Senior Management Grade, the Middle Management Grade and the Junior Management Grade. In the instant case we are concerned with the officers who belong to the Junior Management Grade. This grade consists of Probationary Officers, Trainee Officers and other officers who are technical persons or specialists such as Assistant Law Officer, Security Officer, Assistant Engineer, Technical Officer, Medical Officer and Rural Development Officer (herein referred to as RDOs). The officers of the Bank, who generally look after the Banking business have been described as generalist officers whereas the others have been described as specialist officers who advise and undertake the work of the Bank in their respective field of specialization. There are therefore, generalist officers on the one hand and specialist officers on the other. Before the year 1979 all the officers, generalist as well as specialist, were entitled to the pay-scale prescribed for the Junior Management Grade, but apart from the pay-scale which was common, they were also entitled to the same benefit of higher starting salary by grant of advance increments. It is not disputed that they were all entitled to advance increments on appointment, so that their initial starting pay was fixed at a stage higher than the starting pay in the prescribed scale. It was stated at the Bar that all the officers were granted 4 increments when they initially joined the post on appointment.

4. In the year 1979, in exercise of powers conferred by sub-section (1) of Section 43 of the State Bank of India Act, 1955, the Central Board of the State Bank of India made an order determining certain terms and conditions of the appointment and service of officers in the Bank. The said order is known as the "State Bank of India Officers (Determination of Terms and Conditions of Service) Order, 1979" (hereinafter referred to as the 1979 Order). The order applied to the existing officers of the Bank, who were appointed or promoted to any of the grades mentioned in paragraph 4 of the 1979 Order and to such other employees of the Bank to whom it may be made applicable to the extent and subject to such conditions as may determined by the competent authority. Terms - "Officer", Probationary Officer" and "Trainee Officer" have been defined in paragraph 3 of the 1979 Order as under :-

"3. In this order, unless there is anything repugnant to the subject or context-

(k) Officer" means a person fitted into or appointed to or promoted to any of the grades specified in paragraph 4 including an existing officer and shall also include any specialists or technical persons so fitted or promoted or appointed and any other employee to whom any of the provisions of this order has been, made applicable under paragraph 2;

(l) "Probationary Officer means an officer appointed as such and fitted in the Junior Management Grade;

(o) "Trainee Officer" means a per

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2002 Supreme(SC) 498

Cases Referred (4)