SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Ker) 2618

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Sushrut Arvind Dharmadhikari, Syam Kumar V.M., JJ.
State Bank Of India And Ors. – Petitioners
Versus
Alex Zacharia, S/O Late M.C.Zachariah – Respondent
WA NO. 2460 OF 2016
Decided On : 22-08-2025

Advocates Appeared:
For the Petitioner: Shri. P.Gopal
For the Respondent: Sri. Syam Padman (Sr), Sri. Ram Mohan

Retired officers of the State Bank of India are not entitled to transfer traveling allowance if settled abroad, as per Rule 2(4) of the Service Rules.

Headnote:(A) Kerala High Court Act, 1958 - Section 5 - State Bank of India Officers Service Rules, 1992 - Rules 2(4), 43, and 47 - Transfer traveling allowance - Retired officer eligible for allowance on settling abroad - The learned Single Judge erroneously interpreted Rule 43 as applicable to officers settled outside India, contrary to Rule 2(4). The judgment allowing the petitioner’s claim for traveling allowance was set aside as the stipulations of service rules dictated otherwise. (Paras 3, 6, 10)

(B) Interpretation of Statutes - The principle that where two interpretations are possible, the one in favor of the employee must be adopted was misapplied.

Facts of the case:
The respondent, after retirement from the State Bank of India, claimed traveling allowance for settling down in the U.S. Following the rejection of the claim under Ext.P5, he filed a writ petition which was allowed by the learned Single Judge.

Findings of Court:
The court found that the learned Single Judge's interpretation could not be upheld since Rule 2(4) excluded application to employees settled abroad.

Issues: Whether retired officers settling abroad are entitled to the same allowances as those settling within India.

Ratio Decidendi: The court held that service rules must be strictly interpreted in accordance with their provisions, specifically stating that Rule 2(4) exempts those settled abroad.

Result: The judgment dated 05.10.2016 is hereby set aside.

Table of Content
1. retired officer's entitlement to allowances based on service rules. (Para 2 , 3 , 4)
2. arguments regarding the interpretation of service rules for retired officers. (Para 5 , 6 , 7)
3. the court's clear reasoning about the applicability of service rules. (Para 10)

JUDGMENT :

Sushrut Arvind Dharmadhikari, J.

The present intra-court appeal filed under Section 5 of the Kerala High Court Act , 1958, assails the judgment dated 05.10.2016 passed in W.P(C)No.19157 of 2008, whereby the learned Single Judge has allowed the writ petition.

2. The appellants herein were the respondents in the writ petition whereas the respondent was the petitioner. The respondent had filed the writ petition on the issue whether a retired officer of the State Bank of India is eligible for transfer travelling allowance and transportation charges in case he settles down in a foreign country and whether it is limited to those who settle down within India.

3. The respondent had filed the writ petition seeking for the following reliefs:

“a. Declare that the petitioner is entitled to be paid the traveling allowance on retirement by respondents 1 and 2 as per Rule 43 of Exhibit P1 Service Rules;

b. Issue a Writ of Mandamus or other appropriate Writ, direction or Order, directing the respondents Nos. 1 & 2 to pay the traveling allowance on retirement to the petitioner as per Rule 43 of Exhibit P1 Service Rules, as expeditiously as possible.

c. Issue a Writ of Certitiorari or any other appropriate Writ Direction or Order, quashing Exhibit P5 notice as being violative of the State Bank of India Officers Service Rules.

d. To direct the respondents to pay the costs of this proceedings And d. Grant such other and further reliefs that this Hon'ble Court may deem fit and proper to grant in the interest of justice.”

4. The brief facts of the case are that the respondent retired from the State Bank of India while working in Middle Management Grade III, on voluntary retirement with effect from 15.06.2004 and settled down in Horsham in the United States of America. The respondent had challenged Ext.P5 order rejecting his claim for granting transfer travelling allowance and transportation charges, on the ground that he had settled down in a foreign country. The learned Single Judge set aside Ext.P5 order and declared that the respondent is entitled to the benefit of Rule 43 of State Bank of India Officers Service Rules, 1992 (‘Rules’ for short) as in the case of any other officer who settle down in India as provided in Rule 43 of the Rules.

5. Being aggrieved, the appellants have filed the present writ appeal. The learned counsel for the appellants contended that the service conditions of the respondent is governed by the State Bank of India Officers Service Rules which came into force with effect from 1st January, 1992. These Rules have been formulated in exercise of the powers conferred by Sub Section (1) of Section 43 of the State Bank of India Act , 1955, determining terms and conditions of the appointment and service of officers in the Bank. He submitted that the learned Single Judge came to the conclusion that there cannot be an interpretation against the employee who does not have the bargaining power and therefore, Rule 43 of the Rules has to be interpreted in favour of the employee. The appellants, therefore, cannot be permitted to interpret Rule 43 in a manner that deprives the respondent of its benefits. The learned Single Judge went on to hold that if at all two views are possible, the view favourable to the employee has to be adopted; otherwise he would be a victim of invidious discrimination. The learned counsel for the appellants submitted that the learned Single Judge erred in concluding that Rule 43 is not to be read in conjunction with Rule 47 or Rule 2(4) of the Rules.

6. The learned counsel for the appellants submitted that on perusal of Rule 2(4), it is clear as daylight that these Rules cannot be applied outside India. If Rule 43 is read with Rule

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top