JUDGMENT

S.B. SINHA, J.

1. Leave granted.

2. Appellant is a bank constituted and incorporated under the Regional Rural Banks Act, 1976 (for short, "the Act"). Section 30 thereof provides for a regulation making power.

On or about 13.5.1980, the Government of India circulated the model (staff service) regulations for the officers/employees of the Regional Rural Bank for adoption/approval by their respective Board of Directors. The Board of Directors of the Appellant- Bank in exercise of its powers conferred upon it under Section 30 of the Act after consultation with the State Bank of India (sponsor bank) and Reserve Bank of India and with the previous sanction of the Central Government framed regulations known as "Ganga Yamuna Gramin Bank Staff Service Regulations, 1985" laying down the terms and conditions of service of its employees. Some of the relevant provisions of the said Regulations are as under:

"10.(2)(a) The Bank may terminate the services of an

(i) Officer after giving him three month's notice of emolument in lieu thereof.

(ii) Employee after giving him one month's notice or emoluments in lieu thereof.

(30)(1) PENALTIES--

Without prejudice to the provisions of other regulations,