The central legal point established in the judgment is that the financial difficulty of a bank and the lack of legal right for equal pay with employees of another bank can influence the court's decision in a pay scale dispute.

1. This revision petition has been filed against the order dated. 20.1.2007, passed by the Registrar of Cooperative Societies, by virtue of which he has advised petitioner to work hard for improving financial health of bank and work in coordination with the management of bank, so that bank comes out of financial difficulty.

2. Petitioner has challenged the impugned order on the grounds that, Court below has not properly resolved the dispute according to provision of law. That Court below instead of deciding the question under law has misdirected itself by disposing off petition without rendering any finding on the question in controversy.

3. I have heard both the counsels at length and perused the order impugned. Record of court below has also been perused.

4. From the perusal of record, it appears that petitioner along with other two petitioners filed an arbitration application u/r 3 of Jammu Central Cooperative Bank Ltd. Jammu Employees service Rules 1997 read with Section 63 ) of J&K Cooperative Societies Act for directing the respondents to grant revision of pay scales and allowances at par with the Officers of J&K Bank Ltd.

5. In the petition before court below, it has been stated that petitioners were working in lower scale and are similarly situated Officers of J&K Bank. General Secretary of association approached the management of bank for bringing them at par with pay scale and allowances applicable to the Officers of J&K Bank Ltd. That on 18th of March, 1998, a memorandum of understanding was arrived between Managing Director and Officer association and it was agreed that scales of pay of Officers of Jammu Central Cooperative Bank shall be equated with scale applicable to JK Bank. That this memorandum of understanding was followed by a order dated 24.3.1998 passed by Managing Director of Bank, whereby it was agreed that whenever a change of pay scale and allowances of Officers of J.K. Bank would take place same effect will be given to officers of their bank to that of Officer of JK Bank. It was also agreed that effect shall take place w.e.f. Ist April, 1988.

6. That Officers of J.k Bank were placed in revised pay scale vide Order dated 3.1.2001, w.e.f. 1.3.1998. That vide Order dt. 30.8.2001 Dy Gen Manager of J.K Bank ordered yet another revision of pay Scale w.e.f. 1.4.2001.

7. That petitioners thereafter, approached management many times and apprised them of two revisions in pay scale of j.k bank officials and requested them to revise their pay scale in term of memorandum dt. 19.3.1998, but respondents have avoided. That a legal notice was sent on 24.12.2001 and respondent vide order dt. 25.2.2002 issued order of revision of pay from 1.1.2002 and not from 1.4.1998. Accordingly, it was prayed before the Court below that their pay scale be revised from 19.3.1998 along with H.R.A.

8. Bank filed objections and stated that Bank is a Society and has its area of operation within Jammu Province only. Whereas JKBank is banking company and is an instrument of State having vast net work. That petitioners have no locus standi to pressurize such like issues of revision of pay. That as per revision of pay scale w.e.f. 1.1.2000 is concerned, same were granted after due consultation with representatives of Employees and funds availability. That revision of grade cannot not be construed as a dispute for referring it as arbitration.

9. The Court below after hearing the arguments disposed off the petition. The relevant extract of order reads as under:

"It is surprising that how then management of the Bank has signed such an Agreement with its employees, keeping in view the fact that the Bank is continuously incurring losses and has come under the purview of Section 11 of the Banking Regulations Act, 1949.

10. Keeping the above in view, the petitioners are advised to work hard, improve the financial health of the Bank and work in coordination with the Management so that the Bank comes out of present financial difficulty. This shall pave way for

Click Here to Read the rest of this document