Judgment

VERMA, J.:- Respondent No.1, M. S. Jasra, joined the service of the Reserve Bank of India in 1957, was promoted as a Staff Officer in 1970 and then as a Banking Officer in 1977. M. S. Jasra applied in response to an advertisement issued by the Lakshmi Commercial Bank and was selected in 1983 for the post of Assistant General Manager which he joined in March, 1983.

2. The Central Government, after considering the application made by the Reserve Bank under sub-sec. (1) of S. 45 of the Banking Regulation Act, 1949 made an order of moratorium under sub-see. (2) thereof in respect of Lakshmi Commercial Bank on April 27, 1985. Thereafter, the Reserve Bank prepared a scheme for amalgamation of the Lakshmi Commercial Bank with the Canara Bank on August 23, 1985 under sub-sec. (4) of S. 45 which was approved by the Central Government on August 24, 1985. As a consequence thereof, the services of the employees of Lakshmi Commercial Bank were continued on amalgamation in the Canara Bank and respondent No.1, M. S. Jasra was fitted in the post of Divisional Manager in the Canara Bank.

3. M. S. Jasra, respondent No.1 was aggrieved by his continuance in the Canara Bank as Divisional Manager since he claimed to be fitted against a higher post by virtue of the office of Assistant General Manager held by him in the Lakshmi Commercial Bank; and he also asserted that he was entitled to continue in the service of Canara Bank till he attained the age of 60 years which was the age of superannuation for him in the Lakshmi Commercial Bank instead of 58 years, the age of superannuation in the Canara Bank. These representations made by M. S. Jasra were rejected by the Canara Bank as well as by the Reserve Bank. Respondent No. 1, M. S. Jasra then filed Writ Petition No. 2199 of 1991 in the Delhi High Court for grant of the relief that he was entitled to continue in service in the Canara Bank till he attained the age of 60 years instead of 58 years. By the impugned judgment dated 20th September, 1991 the High Court has allowed the writ petition quashing the Reserve Banks letter dated 18th May, 1991 wherein it was stated that the age of superannuation of respondent No. 1, M. S. Jasra was 58 years and not 60 years as claimed by him, and declared that the respondent No. 1 is entitled to continue in service of the Canara Bank till he attains the age of 60 years. Hence, this petition for grant of special leave to appeal against the High Courts judgment has been filed. The only question for decision herein is that of the age of superannuation.

4. Leave is granted.

5. The contention of Shri K. N. Bhat, learned counsel for the appellant, Canara Bank, is that the relevant provisions contained in S. 45 of the Banking Regulation Act, 1949 read with the material portions of the scheme for amalgamation framed the Reserve Bank show that the employees of the Lakshmi Commercial Bank who are continued in the service of the Canara Bank, on amalgamation of the Lakshmi Commercial Bank with the Canara Bank are entitled, on their integration in the service of the Canara Bank, to the same remuneration and the same terms and conditions of service which are applicable to the other employees of coresponding rank or status in the Canara Bank and not to any higher or larger benefits irrespective of the fact whether the remuneration and terms and conditions of service of the concerned employee were better or worse prior to amalgamation in the Lakshmi Commercial Bank. Shri Harish N. Salve, learned counsel for the respondent, Reserve Bank of India has supported the contention of Shri Bhat. On the other hand, Shri S. C. Gupta, learned counsel for respondent No. 1, M. S. Jasra has attempted to support the High Courts conclusion including the reasons therefor.

6. It would be appropriate at this stage to quote the relevant portion of S. 45 of the Banking Regulation Act, 1949 and scheme for Amalgamation framed by the Reserve Bank under S. 45(4) of the Act :-

"45. Power of Reserve Bank to a