JUDGMENT

KIRPAL, J. - The All India State Bank Officers Federation, which is registered as a trade union of the officers of the State Bank of India working throughout the country, is seeking to challenge a new promotional policy framed by the respondent-Bank on 7-3-1989 relating to the promotion from the post of Senior Management Grade Scale V to Top Executive Grade Scale VI.

2. The respondent-Bank was established by the State Bank of India Act, 1955 (for short "the Act") and according to Section 17 of the said Act its Management is entrusted to the Central Board constituted under the Act. Under Section 43 of the said Act the Bank is empowered to appoint such number of officers, advisers and employees as it considers necessary or desirable for the efficient performance of its Functions. Sub-section (1) of Section 43 gives the Bank the power to determine the terms and conditions of the appointment of such persons.

3. The Bank framed State Bank of India (Supervising Staff) Service Rules, 1975, in exercise of its powers under Section 43 of the Act, These rules deal with various grades and scales of officers, conduct rules, salary, seniority, promotion, etc. Again, under Section 43 of the Act, the Central Board of the Bank framed the State Bank of India Officers (Determination of Terms and Conditions of Service) Order, 1979 (hereinafter referred to as "DTCS Order"). This order deals with various grades and scales of officers, salary perquisites, appointments, probation, confirmation, promotion, age of retirement rules, terminal benefits etc. The grades and scales of officers are as follows :

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"From 1-10-1979 (consequent upon From 1-2-1984 (consequent upon

revision of service conditions) wage revision)

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Junior Management Grade I and all Junior Management Grade I

officers Grade II

Middle Management Grade Scale II Middle Management Grade Scale II

Middle Management Grade Scale III Middle Management Grade Scale III

Senior Management Grade Scale IV Senior Management Grade Scale IV

Senior Management Grade Scale IV-A Senior Management Grade Scale V

Senior Management Grade Scale V Top Executive Grade Scale VI

Deputy General Managers

Top Executive Grade Scale VI Top Executive Grade VII General

General Managers Managers

Top Executive Grade Scale VII Top Executive Grade Special Scale

Chief General Managers I Chief General Mangers

Top Executive Grade Special Scale Top Executive Grade Special Scale

I Deputy Managing Directors II Deputy Managing Directors"

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4. Paragraph 17 of the DTCS Order specifically deals with promotion of staff and is as under :

"Promotions to all grades of officers in the Bank shall be made in accordance with the policy laid down by the Central Board or the Executive Committee from time to time."

5. In exercise of the powers under this paragraph the Central Board of the Bank has, from time to time, been determining the policy for promotion to various grades of scales of officers. The policy for promotion from Senior Management Grade Scale V to Top Executive Grade Scale VI, with which we are concerned in the present petition, and Top Executive Grade Scale VI to Top Executive Grade Scale VII was framed by the Central Board in its meeting held on 28-11-1975. Prior to 1975 the promotion policy which was in force for promotion to Top Executive Grade Scale VI and to Scale VII did not provide for any selection procedure. From 1975 onwards the Central Board approved a promotion policy under which assignment appraisals and interviews were made the two components of the selection procedure. According to the petitioners, the zone of consideration from amongst the eligible officers had been varying from time to time. Generally the Ban