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2011 Supreme(Cal) 350

HIGH COURT OF CALCUTTA
PRATAP KUMAR RAY AND MRINAL KANTI CHAUDHURI, JJ.
Kenaram Biswas - Appellants
Vs
Nadia Gramin Bank - Respondents
Constitutional Writ Jurisdiction F.M.A. No. 112 of 2008
Decided on: March 11, 2011

Advocates Appeared:
Debobrata Roy, L.K.Gupta, Sumit Ghosh, Joydeep Acharya, Pratik Ghosh

The selection process for promotion in a Regional Rural Bank is not vitiated merely because the written test is conducted by an outside agency before the constitution of the selection committee, if the Rules do not specify who should conduct the tests and the Board of Directors' decision to entrust an outside agency with the task is not inconsistent with the Rules.

Headnote:

REGIONAL RURAL BANKS (APPOINTMENT AND PROMOTION OF OFFICERS AND OTHER EMPLOYEES) RULES, 1998 - PROMOTION - SELECTION PROCESS - WRITTEN TEST CONDUCTED BY OUTSIDE AGENCY PRIOR TO CONSTITUTION OF SELECTION COMMITTEE - VALIDITY: Whether the selection process for promotion in a Regional Rural Bank is vitiated if the written test is conducted by an outside agency before the constitution of the selection committee, as per the Regional Rural Banks (Appointment and Promotion of Officers and Other Employees) Rules, 1998.

Fact of the Case:

Appellants challenged the selection process for promotion in a Regional Rural Bank, alleging that the written test was conducted by an outside agency before the constitution of the selection committee, in violation of the Regional Rural Banks (Appointment and Promotion of Officers and Other Employees) Rules, 1998.

Finding of the Court:

The Court held that the selection process was not vitiated merely because the written test was conducted by an outside agency before the constitution of the selection committee. The Rules did not specify who should conduct the tests, and the Board of Directors' decision to entrust an outside agency with the task was not inconsistent with the Rules.

Issues: 1. Whether the written test conducted by an outside agency prior to the constitution of the selection committee vitiated the selection process? 2. Whether the principle of estoppel, acquiescence, and waiver applied when the selection process was challenged by unsuccessful candidates?

Ratio Decidendi: 1. The Regional Rural Banks (Appointment and Promotion of Officers and Other Employees) Rules, 1998, did not specify who should conduct the written tests for promotion. 2. The Board of Directors' decision to entrust an outside agency with the task of conducting the written tests was not inconsistent with the Rules. 3. The principle of estoppel, acquiescence, and waiver applied when the selection process was challenged by unsuccessful candidates.

Final Decision: The Court dismissed the appeal, upholding the validity of the selection process and ordering the appellants to pay costs of Rs. 6000 to the respondents.

JUDGMENT

Pratap Kumar Ray, J.

1. THE Judgment of the Court was delivered by Heard the learned Advocates appearing for the parties.

2. ASSAILING the judgment and order dated 12th March, 2007 passed by the learned trial Judge in W.P. No. 22082 (W) of 2005, this appeal has been preferred.

The impugned order reads such:

"12.3.2007.- These three petitioners have prayed for the issuance of a writ of mandamus commanding upon the Respondents to cancel the Written Tests which were held on 04.09.2005 for considering the promotions of the Clerks to the Officer Cadre in Scale –

1. The petitioners have further prayed for the issuance of a writ of mandamus commanding upon the respondent to hold fresh Written Tests through an experienced and professional outside Agency in compliance with the Rules. The Petitioners have also prayed for cancellation of the panel of those candidates who have been shown to have qualified in the Written Tests and also to quash the entire process relating to the said Written Tests.

2. The facts, briefly stated, are that the Petitioner No. 1 joined as a junior Clerk-cum-Cashier in the Nadia Gamin Bank in 1984. He is now presently posted at the Rautari Branch. The petitioner No. 2 also joined in the same capacity in the Nadia Gamin Bank in the year 1984 and is now posted at the Baganchra Branch. The Petitioner No. 3 also joined as junior Clerk- cum-Cashier in the year 1988 in the Nadia Gamin Bank and is presently posted at the Khidirpur Branch.

3. On 29.07.1998, the Government of India, Ministry of Finance, Department of Economic Affairs issued a Notification purporting to be in exercise of powers conferred under section 29 of the Regional Rural Banks Act, 1976 read with section 17 thereof, whereby and where under, while superseding the earlier "Regional Rural Banks (Appointment and Promotion of Officers and other Employees) Rules 1988, it framed a new set of Rules in consultation with the National Bank and other Sponsor Banks specified in the 2nd Schedule appended thereto and, which came to be known and named as the "Regional Rural Banks (Appointment and Promotion of Officers and Other Employees)Rule 1988".

4. In other words, the 1998 Rules superseded by these new rules which came into force on 29.07.1998 and which, for the sake of brevity and precision will hereinafter referred to as the 1998 Rules.

5. The aforementioned 1998 Rules has been brought on record by the Petitioners vide Annexure P-I appended to this writ petitioner.

6. Let it be recorded that on 12.03.2007 when the case was called out, Mr. D. Saha Roy, learned Counsel appearing for he petitioner had submitted that two Notifications had been issued by the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division) whereby and where under the Central Government, after consultation with the National Bank for Agriculture and Rural Development, Government of West Bengal and the United Bank of India being the Sponsor Bank of Gaur Gramin Bank, Mallabhum Gramin Bank, Murshidabad Gramin Bank, Nadia Gramin Bank and Sagar Gramin Bank (Regional Rural Banks) and in the interests of development of the area serve by them, had decided that all these Rural Banks should be amalgamated into a single Regional Rural Bank to be called as "Bangiya Gramin Vikash Bank".

7. Mr. L. K. Gupta, learned Counsel appearing for the Respondents, did not dispute the aforementioned contention. On fact, he produced a copy of the aforementioned Notification dated 21.2.2007 and accordingly, by Order of this Court passed on 12.03.2007, the same was directed to be kept with the records of this case.

8. Mr. L.K. Gupta had also submitted that he had been authorised to represent the "Bangiya Gramin Vikash Bank". He had prayed that the Affidavit-in-opposition which had been filed on behalf the "Nadia Gramin Bank" be treated as the Affidavit-in-opposition of the "Bangiya Gramin Vikash Bank". Mr. L.K. Gupta had also stated that he had already filed Power for the said transferee






















































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