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IN THE HIGH COURT OF MADRAS
Prabha Sridevan, J.
INDIAN BANK EMPLOYEES' ASSOCIATION — Appellant
Vs.
GENERAL MANAGER (ADMINISTRATION), INDIAN BANK CENTRAL OFFICE AND OTHERS — Respondent
Writ Petition No's. 14333 of 1998 and 14757 of 1999
Decided on : 20-04-2004

Advocates Appeared:
For The Appellant : D. Hariparanthaman
For The Respondent: Kalyanaraman, and J. Madanagopal Rao

The central legal point established in the judgment is the need for evidence and adjudication by the Tribunal to determine the applicability of settlement terms and the existence of an industrial dispute.

Headnote:

ATM - Labour Dispute - Settlements dated December 25, 1988, April 7, 1989, January 22, 1990, December 21, 1992 - The court discussed the settlements related to the introduction of ATMs in various branches of the Indian Bank and the terms agreed upon regarding special allowances for clerical staff attending to ATMs. The court highlighted the interpretation of the settlement terms and their application to the T. Nagar branch, emphasizing the need for evidence and adjudication by the Tribunal.

Fact of the Case:

The Indian Bank introduced ATMs in several branches and entered into settlements regarding special allowances for clerical staff attending to ATMs. A dispute arose when the bank sought to withdraw the special allowance for two clerical staff in the T. Nagar branch, leading to the filing of writ petitions.

Finding of the Court:

The court found that the Government erred in declining to refer the dispute for adjudication, emphasizing the need for evidence and adjudication by the Tribunal. It concluded that the writ petition in W.P. No. 14333 of 1998 was not an abuse of process of law and directed the Government to refer the dispute for adjudication.

Issues: The issues involved the interpretation of settlement terms, the Government's refusal to refer the dispute for adjudication, and the alleged discrimination against the minority union.

Ratio Decidendi: The court emphasized the need for evidence and adjudication by the Tribunal to determine the applicability of settlement terms and the existence of an industrial dispute. It held that the Government's refusal to refer the dispute was erroneous and directed the dispute to be adjudicated within six months.

Final Decision: W.P. No. 14333 of 1998 was closed, and W.P. No. 14757 of 1999 was allowed, directing the Government to refer the dispute for adjudication within four weeks and to be adjudicated within six months.

JUDGMENT :

Prabha Sridevan, J.—The writ-petitioner is a trade union and not a majority union. The Indian Bank whose employees they were minority trade union was the petitioner-union was the first nationalised bank to introduce Automated Teller Machine (ATM). It was first introduced at the Harbour Branch. Then subsequently at Royapettah, Mylapore and Anna Nagar Branches. Settlements were also entered into with respect to individual branches between the respondents-bank and the recognised union whereunder it was agreed to pay special allowance to two clerical staff attending to ATM on permanent basis based on branch seniority. This practice is continuing in the aforesaid branches till date. At that time ATMs were not interlinked to the central computer and were operated by the particular branch where the ATMs were installed. Thereafter the Indian Bank decided to have a network at Anna Nagar branch and to introduce ATM which is said to have been installed another in the Pursawakkam branch and yet another "After Hour Depository" (AHD) proposed for Mylapore branch. Both to be installed at T.Nagar branch. The problem now exists before us relates to T. Nagar branch alone. The settlements, which were entered into with 5 regard to the Harbour Branch and the other branches are all produced in the typed set of papers filed by the respondents. The first is dated December 25, 1988, in which one of the terms is that two clerks/shroffs would attend to 10 the duties/functions of the ATM and would be eligible, but the prescribed allowance is as admissible to tellers of the bank. This relates to the ATM installed at Harbour branch. On April 7, 1989 there was another settlement in which 15 the bank decided to install machines at Royapettah, Pursawakkam, Mylapore and Industrial Finance Branch and terms of two of the settlements indicate that the parties had agreed with the norms in vogue or the ATM at 20 Harbour branch would govern the ATMs to be installed in the other four branches. On January 22, 1990 there was yet another settlement in which the terms ignoring the Anna Nagar Branch were agreed upon. It is seen from this that since there were practical difficulties in installation of ATM at Industrial Finance Branch, which was referred to in the second settlement of above, it was agreed to be installed at Anna Nagar branch.

2. The next settlement is dated January 19, 1990, in which the term relating to payment of special allowance shows that the parties had agreed that special allowance would be paid to all the clerical members who are working in cash department and that wherever clerical staff members are drawing special allowance on permanent basis, they would be continued to be paid special allowance on permanent basis as long as they work in the same branch and ceased to draw the allowance when they are leaving the branch. The other vacancies would be assigned on a turn basis. The settlement, dated December 21, 1992, which has a specific relation to the T.Nagar branch, viz., Clauses (6), (7) and (8) are extracted below:

"(6) On account of the networking of ATMs of our bank by linking it to the computer at CO/CPPD, the duties/functions of the clerical staff posted to attend the ATM work stand modified as follows : the two clerical staff drawing teller allowance on permanent basis would continue to draw the same and perform the duties as agreed to in the earlier settlement. The operations of the ALPM attached to ATM will be assigned exclusively to staff members on turn basis for three months among the staff members who are not in receipt of any special allowance as admissible to ALPM operators.

(7) It is now agreed to that ATM proposed for Pursawakkam branch and AHD proposed for Mylapore branch will now be installed at T. Nagar.

(8) All other terms and conditions stipulated and agreed to in the earlier settlements, dated December 28, 1988, April 7, 1989 and January 22, 1990 remain unaltered."

3. The correspondence between the parties have been en

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