A policy decision taken by a bank to integrate the cadre of Agricultural Assistants with the general banking cadre is not justiciable unless it is found to be arbitrary.

S. K. Singh, J.

1. The petitioners who are Agricultural Assistants in State bank of India, respondent no.1, have challenged the legality of decision contained in a communication dated 15th of September, 1987, issued by respondent no.3, whereby the purported decision of the Executive Committee of the central Board of the State Bank of India dated 7th August, 1987, has been circulated for compliance. According to the circular, it was decided to discontinue the then existing system of promotion of Agricultural Assistants to the posts of Rural Development Officers/trainee Rural Development Officers. The said communication is appended as Annexure-1 to the writ petition. The petitioners have further prayed for issuance of direction to the respondents for consideration of their cases for promotion to the posts of Rural development Officers/trainee Rural Development Officers on the basis of the rule prevailing prior to the agreement dated 22-11-1986 arrived at between the all India Bank Federation and the respondent State Bank of India hereinafter referred to as the bank.

2. According to the petitoners, prior to 1979 the lowest post in the agricultural banking side was that of Agricultural Assistant in the State Bank of India, the minimum qualification for the post was B. Sc, (Agriculture), whereas for the parallel clerical cadre, the minimum qualification for appointment to the post of Cashier/clerk-cum-Typist was Matriculation. The Agricultural Assistants used to be promoted to the next higher post of Trainee Officer (Agricultural) Grade II, and Technical Officer (Agricultural) Grade III. Similarly in the general clerical side, the promotional avenue was the post of officers Grade 11. In respect of these assertions reference was made to State bank of Indias Circular Nos.71/79 and 118/78.

3. It is further stated that in 1979, the Executive Committee of the central Board of the Bank created a cadre of Rural Development Officers and technical Officers (Agricultural) were designated as Rural Development officers. A copy of the said decision is Annexure-2 to this writ petition. The posts of Rural Development Officers were to be filled up by promotions from amongst the Agricultural Assistants. Later in the same year on the recommendations of the Pillai Committee, the Bank merged the different grades and the Rural Development Officers Grade I and II were unified into one combined Grade known as Junior Management Grade Scale I, although their designation continued as Rural Development Officers. The posts of rural Development Officers are filled up by three modes : Firstly, through direct recruitment from persons holding degree in Agricultural Science, secondly, by promotions from the Agricultural Assistants with experience of four years, and lastly by promoting Agricultural Assistants with eight years experience. The direct recuits were designated as Rural Development Officers, whereas those promoted from Agricultural Assistants were designated as trainee Rural Development Officers during their two years training and as rural Development Officers after completion of the training.

4. It is, however, stated in the writ petition tbat the Bank has not recruited Rural Development Officers by the third mode since 1980-81, and by the second mode since 1983-84 although the respondent Bank conducted examination every year for clerk-cum-cashier/clerk-cum-typist on the general side for promotion to the next higher post known as Junior Management Grade scale I Officers. As such according to the writ petitioners who were appointed between 1977 and 1983 were deprived of their chances of promotion.

5. In 1983 the Bank set up Bhatnagar Committee for examining effectiveness of the cadre of the Rural Development Officers. The said committee examined the matter and recommended continuation of the existing system. In the year 1984 a memorandnm of settlement was arrived at between the bank and All India State Bank of India Staff Federation in regard to