LexALL INDIA BANK EMPLOYEES' ASSOCIATION versus NATIONAL INDUSTRIAL TRIBUNAL & OTHERS
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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•
3 S.C.R.
SUPREME COURT REPOR'.l'S
269
should do something in the discharge of his own
duty and thereby obtain a valuable thing or pecu-
niary advantage.
These observations dispose of the present
appeal and it must be held that there is no merit
in the contentions raised in support of the appeal.
As the only point raised in support of the appeal
fails, it is accordingly dismissed.
Appeal dismissed.
ALL INDIA BANK EMPLOYEES' ASSOCIATION
NATIONAL INDUSTRIAL TRIBUNAL & OTHERS
(And Connected Petitions)
(B. P. SINHA, c. J., s. K. DAS, A. K. SARKAR,
N. RAJAGOPALA AYYANGAR and
J. R. MunHOLKAR, JJ.)
Fundamental Right-Right to form association or union-
Scope of-Stature protecting Banks from disclosure of information
regarding
secret
reserves
etc.-Oonstitutionality of-Bankinll
Companies Act, 1949 (X of 1949), s. 34-A-Oonstitution of
India, Arts. 14, 19(1)(c).
Section 34-A of the Banking Companies Act, I 949, intro-
duced in 1960, provides that no banking company shall be
compelled to produce or give inspection of its books of account
or other document or furnish or disclose any statement or in-
formation which the company claims to be of a confidential
4
nature and the production etc., of which would involve di•-
closure of information relating to any reserves not sho\crn as
suc_h in its published balance sheet or any particulars not shown
therein in respect of provisions made for bad and doubtful
debts and other usual or necessary provisions. Sub-section (2) of
'· 34-A provides that any authority, before whom the question
as to whether any amount out of such reserves or provisions
should be taken into account, may refer the question to the
Reserve Bank and the Reserve Bank shall furni•h to the autho-
rity a certificate stating that the authority shall or shall not take
-~ •-into account the amount specified therein. Sub-section (3)
makes s. 34-A applicable to only such banking companies whose
operations extend beyond one State. The Appellant contended
1961
Dhane81twar
Na rain Saxen•
v.
The Delhi
~4dminiatratio11
Sinha C. J.
1961
•
l:!bJ
All India Bank
Employets'
AsDociation
v ••
Naiional Industrial
~ V'ibunal
•
270
~UP~~ COPRJ REPOR~S
'
[1962J
that s. 34-A c.;mtravened the fundamental tight guaranteed to
trade unions.by Art. 19( l')(c)' of the Constitution as it prevented
them .from effectively lxefcising the concomitent fight of
collective bargaining in
respect
of
\vages, bonus
etc.
befOre Industria,l Trjbunals by shutting out important a11d
re~
levant evidence and that thC Section violated
Art. 14 of the
Constitution as it' was n6t mad.er applicable to all the banking·
co~panies.
r·
Held, thats. 34-A of the Banking Companies Act, 1949,
was constitutionally valid and did not'offend eitl)tr Art. 19( 1)( c)
or Art. 14 of the Constitution.
The right guarant~ed by Art. !9(l)(c) of the Constitution
does not carry \Vith· it a concomitant right that unions fC?rmed
for protecting the interests of labour shall achieve their object
such that any interference to such achievement by any law
wotild ,])e.uncl\rlstitution'af i.11\less' it could k>e 'justified ,under
Art. 1\1(4) as being in the interests of Public order or morality.
'.The right under Art, 19(l)(cJ extends only to the. formation of
an a's~9~i.afipn Of \lnion ap~ i~Ef:Jf¥ ,as ,the f\Ctixities 0( the jlS~O
ciation or union a.re con,csrl).i;d or ,as regards ~qe steps which
the union might take to acl{i.eve its otiject, they are subjec~ to
such laws as may be ffamed !and: suCh .la\\'S cannot be: tested
under Art. ll)(+) ..
i;;e~pon 31-A was i;nacted to effect a re-
conciliation bet,veen lhf. confli~~n~ interest .of labour to obtain
p1opcr relief in. !nc!usir1a1 arLiLi'ation, a'Ila the beed to prc~ervc
and maintain the delicate fabrit of the credit structure of the
country by strengthening the t1eal as well as the appatent credit
w,orthiness of banks 'op'erating in •the country.· It preserved
industiial adjudication in' respect 'cf'disputes between the banks
and their employees by entrusting the duty of determining the
surplus res,rve :-rhich, <:ould be tal\~\1 iP~.o l''<;ount as a part of
the asse~s for determining t!'i~ir cap~city to pay to t4e l\.cservc
Bank,
·
Rome•h-fI'hdpparN.>State of .Madras (1950) S.C.R". 594
Ezpreas Newspapers (P.) Ltd: v. Unio1'oj lndid, ( 1959JS.C.R. 12,
Re. The f(erala Education Bill, ·(·1959) S.C.R. 995, National
A'8ociationjor the advan,Excerpt shown. Read the full judgment & AI analysis in Lexace.