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1997 Supreme(All) 349

HIGH COURT OF ALLAHABAD
R.R.K. Trivedi, D.C. Srivastava
BANSHI LAL CHANDEL
Versus
UNION BANK OF INDIA
Decided On : 01 April 1997
C. M. W. R No. 1855 of 1994

Advocates Appeared:
GAJENDRA PRATAP,

Classification of employees for transfer purposes based on reasonable grounds, such as different circumstances or consultation with recognized employee representatives, is permissible and does not violate Articles 14 and 16 of the Constitution.

Headnote:

TRANSFER POLICY - BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1973 - SECTION 3 - CLASSIFICATION OF OFFICERS FOR TRANSFER PURPOSES - VALIDITY.

Fact of the Case:

Petitioners, officers in the junior management grade of Union Bank of India, challenged the bank's transfer policy, alleging discrimination against direct recruits compared to promotees. Direct recruits could only request transfer after five years of service, while promotees were entitled to transfer back to their parent state after two years.

Finding of the Court:

The court held that the classification of officers for transfer purposes was reasonable and permissible. Promotees, who were promoted from the staff category, had different circumstances compared to direct recruits, who joined as officers at a young age. The court also noted that the transfer policy was formulated in consultation with the All India Union of Bank Officers Federation, the recognized body representing the majority of bank officers.

Issues: 1. Whether the bank's transfer policy discriminated against direct recruits in violation of Articles 14 and 16 of the Constitution? 2. Whether the classification of officers for transfer purposes was reasonable and permissible?

Ratio Decidendi: 1. The court held that the classification of officers for transfer purposes was reasonable and permissible. Promotees, who were promoted from the staff category, had different circumstances compared to direct recruits, who joined as officers at a young age. 2. The court also noted that the transfer policy was formulated in consultation with the All India Union of Bank Officers Federation, the recognized body representing the majority of bank officers.

Final Decision: The court dismissed the petition, holding that the transfer policy was not discriminatory and that the classification of officers for transfer purposes was reasonable and permissible.

R. R. K. TRIVEDI, J.

In this petition counter and rejoinder affidavits have been exchanged. Learned Counsel for parties have agreed that this petition be decided finally at this stage.

2. Union Bank of India (hereinafter referred to as the Bank) is a nationalised bank under the provisions of the Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1973 (hereinafter referred to as the Act ). Petitioners joined service under the Bank as officers in the cadre of junior management grade as direct recruits. Petitioner Nos. 1 and 2 joined in the year 1989 whereas petitioner No. 3 joined in 1983. As stated in the writ petition petitioners Nos. 1 and 2 are still serving in the cadre of junior manage ment grade. However, petitioner No. 3 has been promoted and now he is serving in the middle management grade.

3. Grievance of petitioners in this peti tion is against the policy formulated by the Bank for transfer of the officers. According to them under this policy a different and discriminatory procedure has been adopted by the Bank regulating transfer of the direct recruits and the promotees. The contention of the petitioner is that whereas the promotees are entitled to be transferred back to their parent State after two years, there is no such policy with regard to the direct recruits. They can only request for their transfer after completion of five years service. In the present case petitioner No. 1 is from State of Rajasthan, petitioner No. 2 is from the State of Bihar and petitioner No. 3 is from Orisssa. Their case is that they were born, brought up and educated in their parent State, their families are residing there and as they are not transferred to their home State, they are suffering hardship. It is also contended that after joining service both direct recruits as well as the promotees are absorbed in one cadre and they form one integrated cadre and belong to one class and they cannot be discriminated in matter of transfer also.

4. Learned Counsel for petitioner has submitted that numerically the officers coming as promotees formed majority and they prevailed over and pressurised the management for laying down the policy of transfer advantageous to the promotees and the interest and grievances of the direct recruits have been ignored.

5. Learned counsel for petitioners has placed reliance in case of Roshan Lal Tan-don v. Union of India and another, AIR 1967 SC 1889 & The General Manager South Central Railway, Sicunderabad and another \. A. VR. Siddhanti and others, AIR 1974 SC 1755.

6. Learned counsel for the respondent, on the other hand, submitted that the policy of transfer was formulated after taking into consideration the views of All India Union of Bank Officers Federation which is an official and recognized body representing the majority of officers of the Bank on all India basis. The policy was finalised after consensus had been arrived at. The manage ment has taken into consideration the inter est of all the groups and the policy had been framed in the larger interest of the Bank and its employees. It has been submitted that the allegations of discrimination are incorrect. The classification between the promotees and the direct recruits for the purpose of guidelines for transfer is reasonable and permissible and it has a nexus with the ob ject sought to be achieved. It has been stated that the promotee officers are those officers who are promoted from the staff category serving the Bank as assistants, cashiers, ac countants etc. This category of staff is not even transferred from one district to another in the same State. It is a condition of their service that they will remain in the same State. It is only on promotion to the category of officers that the question of their transfer arises which is quite late in their service with the Bank. Thus, in matter of policy of transfer, they h ive been given a different treatment. The promotees and the direct recruits though form an integrated c





















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