(1) SPECIAL leave granted.

(2) HEARD. Interim stay of the implementation of the impugned order of the High court.

(3) THE question which arises in this appeal is whether sub-clause (1-A) of clause 8 in Ch. II of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, (hereinafter referred to as the Scheme), which is applicable to Directors on the Boards of various nationalised banks, is ultra vires Article 14 of the Constitution or not.

(4) THE relevant part of clause 8 of the Scheme reads as follows:

"8. Term of office and remuneration of a whole-time Director including Managing Director.(1 A whole-time Director including the Managing Director, shall devote his whole time to the affairs of the nationalised bank and shall hold office for such term not exceeding five years as the central government may after consultation with the Reserve Bank specify and shall be eligible for reappointment.

(1-A) Notwithstanding anything contained in sub-clause (1 the central government shall have the right to terminate the term of office of a whole time Director, including the Managing Director, at any time before the expiry of the term, specified under that sub-clause by giving to him notice of not less than three months in writing or three months salary and allowances in lieu of notice; and the whole-time Director including the Managing Director, shall also have the right to relinquish his office at any time before, the expiry of the term specified under that sub-clause by giving to the central government notice of not less than three months in writing.

(1-B) Any reference to a whole-time Director, including the Managing Director in sub-clause (I-A) shall be construed as including a reference to the person holding office as such at the commencement of the Nationalised Banks (Management and Miscellaneous Provisions) (Second Amendment) Scheme, 1976.

(2 * * *

(3 * * *

(4 The central government may, if it is satisfied that it is expedient in the interests of the nationalised bank so to do, remove a whole-time Director including the Managing Director from office: Provided that no such removal shall be made except after-

(A) consultation with the Board, and

(B) giving a reasonable opportunity to the whole-time Director, including the Managing Director, of showing cause against the proposed action."

(5) THE services of the respondent were terminated by order dated 19-7-1993 which reads as under:

"IN exercise of the powers conferred by sub-clause (1-A) of clause 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, the central government hereby terminate the term of office of Shri M. Gopalakrishnaiah, Executive Director, Bank of Maharashtra with effect from the date of service of this notice on him and direct that he shall be paid a sum equivalent to the amount of his salary and admissible allowances for a period of three months in lieu of the period of notice. The payment of allowances will, however, be subject to the condition in which such allowances are otherwise admissible."

(6) THE central government instead of proceeding under clause 8(4 decided to terminate the tenure of appointment of the respondent under clause 8(1-A) of the Scheme.

(7) THE Constitution bench of this court in Delhi Transport Corpn. v. DTC Mazdoor Congress dealing with Regulation 9(b) of the Delhi Transport Authority (Conditions of Appointment and Service) Regulations, 1952 took the view that the said Regulation was arbitrary, unfair, unjust and unreasonable and opposed to public policy as it affected the services of permanent employees of the Corporation. In this judgment, the Constitution bench upheld the earlier judgment of this court in central Inland Water Transport Corpn. Ltd. v. Brojo Nath Ganguly. The question is whether the reasonings of the aforesaid decisions which applied to permanent employees could be extended to the Dire