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IN THE HIGH COURT AT CALCUTTA
Amarendra Nath Sen, J.
Monoj Kanti Basu & Ors. ….Petitioners
Versus
Bank of India & Ors. ….Respondents
Matter no. 252 of 1975
Decided on : January 22, 1976
BANKING - Deduction of salary - Pro-rata deduction for mass demonstration - Deduction of one full day’s salary for absence on half-yearly closing day - Whether justified - Principles of natural justice - Applicability - Whether the orders passed by the Bank were malafide - Whether the writ petition is competent.
Fact of the Case:
The Bank of India, a nationalised bank, passed two orders deducting the salary of its employees for participating in mass demonstrations and for being absent on the half-yearly closing day. The employees and their union challenged the validity of these orders in a writ petition, contending that the Bank had no power to deduct their salary, that the orders were malafide, and that the principles of natural justice were violated.
Finding of the Court:
The Court held that the Bank was not entitled to deduct the salary of the employees on a pro-rata basis for participating in mass demonstrations, as this was beyond its powers and authority. However, the Court upheld the deduction of one full day’s salary for absence on the half-yearly closing day, as this was authorized under the conditions of service and the principles of natural justice were not violated.
Issues: 1. Whether the Bank had the power to deduct the salary of its employees for participating in mass demonstrations and for being absent on the half-yearly closing day? 2. Whether the orders passed by the Bank were malafide? 3. Whether the principles of natural justice were violated? 4. Whether the writ petition was competent?
Ratio Decidendi: 1. The Bank did not have the power to deduct the salary of its employees on a pro-rata basis for participating in mass demonstrations, as this was beyond its powers and authority. 2. The orders passed by the Bank were not malafide, as they were passed in the larger interest of the Bank to enforce discipline and maintain smooth functioning. 3. The principles of natural justice were not violated, as the employees had the opportunity to apply for leave or offer an explanation for their absence, and the Bank considered the applications and explanations received. 4. The writ petition was competent, as the Bank was a statutory body and its orders could be challenged in a writ proceeding if they were passed in excess of its powers or in violation of the principles of natural justice.
Final Decision: The Court allowed the writ petition in part, quashing the order deducting salary for participating in mass demonstrations and upholding the order deducting salary for absence on the half-yearly closing day.
The Court : An interesting question of some importance concerning the rights and obligations of the Management and the Award Staff of a nationalised Bank arises for consideration in this writ petition.
2. Six employees of Bank of India, a nationalised Bank, (hereinafter referred to as the Bank), and Bank of India Employees' Union, the recognised union of the Bank, have presented this writ petition in which the validity of two orders or notices passed by the Management of the Bank have been questioned. The first order or notice dated 25.6.75 is contained in Annexure 'A' to the petition and is in the following terms :
NOTICE
Deduction of pro-rata wages for mass demonstration.
Certain members of award staff of Calcutta Branch and Regional Office held mass demonstrations on the following days leaving their respective desks :
Date Time
3.6.1975 2-30 p.m. to 4-30 p.m. 2 hours
4.6.1975 11-10 a.m. to 11-35 a.m. 25 minutes
6.6.1975 2-30 p.m. to 3.00 p.m. 30 minutes
17.6.1975 2-45 p.m. to 3-15 p.m. 30 minutes
(Note : The duration of 20 minutes on 6.6.75 from 2-10 p.m. 2-30 p.m. has not been taken into account, since this is part of the usual lunch hour recess of 30 minutes)
Since any cessation of work by employee a mounts to a strike, it has been decided to make pro-rata deduction of wages from the salary to staff members payable for July, 1975.
The members of award staff, who did not participate the man demonstrations, should inform the Bank, in writing, by 10.7.75, individually or collectively, in this behalf, so that such deduction of pro-rata wages in their cases may not be done.
25.6.1975 Sd. R.M. Bose,
Manager
The other notice of order dated 3rd July 1975 which is contained in Annexure 'C' to the petition reads as follows :
Bank of India
Office of the Executive Regional Manager,
Eastern Region
23B, Netaji Subhas Road, Calcutta–1
Ref : RO : SKC July 3, 1975.
The Manager,
Calcutta Branch.
Re : Deduction of salaries
(1) 30th June-Half-Yearly Closing Day
Absence from duties on the above date by the award staff who did not obtain prior sanction of leave should be treated as leave without pay. The deduction of one full day’s salary should be effected from the salary for the month of July, 1975 since June salary has already been disbursed.
(i) Mass Demonstration and Meeting on 1st and 2nd July, 1975 Between 2 and 2-30 p.m.
It has been noticed that lunch recess for the purpose of taking tiffin was a verified of beyond the hours of 2-00 P.M and 2-30 pm. Therefore, pro-rate salary for half an hour for each of these two days must be deducted from the current month’s salary of the award staff on the principle of “NO WORK NO PAY”.
Those members of award staff who did not participate in the mass demonstration and the meeting may apply for exemption from the “Pay Cut”.
N.B.
This may also be noted that mass demonstration and holding of meetings within the bank’s premises without Management’s permission constitute violation of the Bipartite Agreement.
Sd. (S. K. Chakrabortty)
Executive Regional Manager,
Easter Region.
Copy to all Branches :
The agents are requested to verify the factual position in their respective Branches relating toe the subject matter of the above note sent to The Manager, Calcutta Branch. If the circumstances are similar, kindly note that pro-rate salary will have to be deducted under advice to us without any exception.
Kindly acknowledge receipt in the Cut-out slip given below.
Ref Date
The Executive Regional Manager,
Eastern Region,
I acknowledge receipt of your Circular, ref. Re. SKC of 3rd July, 1975 and confirm that your instructions will be complied with meticulously without any exception.
Agent
Branch
3. It is not in dispute in the instant case that on the days mentioned in the notice or order dated the 25th of June, 1975 there was a mass demonstration by certain members of the Award Staff of the Bank for ventilating what the employees considered to be their grievances. It may, however, be noted that though ther
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