HIGH COURT OF CALCUTTA
D. Basu
K. M. MUKHERJEE - Appellant
Versus
SECRETARY AND TREASURER, S. B. I. - Respondent
C. R. 199 (W) Of 1963
Decided On : FEBRUARY 8, 1967
STATE BANK OF INDIA ACT, 1955 - SECTION 7, 17, 43, 50 - INDUSTRIAL DISPUTES ACT, 1947 - SECTION 2(K), 17-A, 18, 19, 29 - INDUSTRIAL DISPUTES (BANKING COMPANIES) DECISION ACT, 1955 - SECTION 4 - WRIT OF MANDAMUS - ENFORCEABILITY OF INDUSTRIAL TRIBUNAL AWARDS - ALTERNATIVE REMEDIES - VIOLATION OF STATUTORY PROVISIONS - AUTHORITY EMPOWERED TO DISMISS EMPLOYEES - STATE BANK OF INDIA GENERAL REGULATIONS, 1955 - REGULATION 55, 56 - VALIDITY OF DISMISSAL ORDER - NATURAL JUSTICE - QUASI-JUDICIAL OBLIGATION.
Fact of the Case:
Petitioner, an employee of the Imperial Bank, was transferred to the State Bank of India under Section 7 of the State Bank of India Act, 1955. He was subsequently dismissed from service by the Staff Superintendent of the State Bank. The petitioner challenged the validity of the dismissal order on the grounds of contravention of the provisions of the Shastri Award, violation of the principles of natural justice, and non-compliance with the statutory provisions regarding the authority empowered to dismiss employees.
Finding of the Court:
The court held that the Shastri Award, being an industrial tribunal award, had no statutory force and could not be enforced by a writ of mandamus. The court further held that the petitioner could not invoke the certiorari jurisdiction of the court under Article 226 of the Constitution since the power to dismiss employees under Section 43 of the State Bank of India Act was an absolute power and not subject to the principles of natural justice. However, the court found that the dismissal order was ultra vires as it was not made by the Central Board or any of its Committees, as required by Section 17(1) of the Act and Regulation 55 of the State Bank of India General Regulations, 1955.
Issues: 1. Whether the Shastri Award is enforceable by a writ of mandamus? 2. Whether the petitioner can invoke the certiorari jurisdiction of the court under Article 226 of the Constitution? 3. Whether the dismissal order was ultra vires?
Ratio Decidendi: 1. An industrial tribunal award has no statutory force and cannot be enforced by a writ of mandamus. 2. The power to dismiss employees under Section 43 of the State Bank of India Act is an absolute power and not subject to the principles of natural justice. 3. The dismissal order was ultra vires as it was not made by the Central Board or any of its Committees, as required by Section 17(1) of the Act and Regulation 55 of the State Bank of India General Regulations, 1955.
Final Decision: The petition was allowed, and the dismissal order was quashed. The State Bank was directed to cancel the impugned order and was at liberty to proceed afresh in accordance with the law and the observations made by the court.
( 1 ) THE petitioner was appointed as a clerk in the Head Office of the Imperial Bank in March, 1948. Under Section 7 of the State Bank of India Act, 1955, the petitioner's services were transferred from the Imperial Bank to the State Bank of India, and in 1961 he was transferred to the Dinhata Pay-Office in the district of Coochbehar. On the 18th December, 1961, he was suspended and on the 19th February, 1962, he was served with a notice to show cause on several charges. There was a departmental inquiry held on the charges on the 13th July, 1962, and on the 5th November, 1962, he was asked to show cause why he should not be dismissed from service. The order of dismissal was eventually passed on the 31st December. 1962, under the terms of para 521 (5) (a) of the "shastri Award", and it is to challenge the validity of that order (Ann. A. p. 9 (a) of the petition) that the present petition under Article 226 of the Constitution has been brought oh the following grounds: (1) That while the Appointing Authority of the petitioner was the Chief Accountant, he has been dismissed by the Staff Supdt. , an officer below the rank of the Appointing Authority. (2) That the inquiry was held in contravention of the requirements of para 521 of the "shastri Award. " (3) That the impugned order was made in contravention of the principles of Natural Justice.
( 2 ) THE contentions raised in the Affidavit-in-opposition inter alia, are: (a) that the State Bank of India is a company incorporated by statute and that since it does not carry out any public functions, the writ of mandamus cannot be issued against it. (b) That the inquiry was held in full compliance with the requirements of para 521 (10) (a) of the "shastri Award". (c) That the punishing as well as the Appointing Authority of the petitioner was the State Bank of India and hence no irregularity was committed. (d) That there was no contravention of Natural Justice. (e) That the petitioner has alternative legal remedy and is not, accordingly, entitled to relief under Article 226 of the Constitution.
( 3 ) I, Though I do not agree with the Respondents that a writ under Article 226 of the Constitution would not, in appropriate cases, He against the State Bank of India, which is a statutory corporation set up by the State Bank of India Act, 1955, I am clearly of opinion that no such relief is available in the instant case on the ground of contravention of the provisions of the Award, for the following reasons: (a) The Petitioner's case is that in making the inquiry resulting in the impugned order, the Respondents have violated the requirements of para 521 of the Shastry Award (as approved by the Desai Award), under which the impugned order purports to have been made. These Awards, however, have no statutory force. The history of these Awards is to be found in the Introductory Chapter of the Report of the Desai Award. Shri Shastri, a retired Judge of the Madras High Court, was appointed an Industrial Tribunal, in 1952, under Section 7 of the Industrial Disputes Act and certain disputes were referred to that Tribunal for adjudication under Section 10 of that Act. The Award given by that Tribunal, in 1953, is known as the 'shastry Award'. In 1960, A National Industrial Tribunal, presided over by Desai J. of the Bombay High Court was set up by the Government of India, and several disputes relating to Banking Companies and their employees were referred to this Tribunal under Section 10 of the Industrial Disputes Act. The Award given by this Tribunal in the year 1962 it known as the Desai Award. It modified and substituted the terms of the Shastry Award in certain respects, into the details of which it is not necessary to go into in the instant case.
( 4 ) IT is needless to say that the Award of an Industrial Tribunal is the decision of an industrial adjudication by a statutory tribunal and can have no more statutory force than the decree of a civil Court. Either may be executed or ot
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