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CHAIRMAN, MAGADH GRAMIN BANK AND ANR. versus MADHYA BIHAR GRAMIN BANK AND ORS.

Citation: [2010] 2 S.C.R. 872 · Decided: 17-02-2010 · Supreme Court of India · Bench: MARKANDEY KATJU · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
B 
[2010] 2 S.C.R. 872 
CHAIRMAN, MAGADH GRAMIN BANK AND ANR. 
v. 
MADHYA BIHAR GRAMIN BANK AND ORS. 
(Civil Appeal No. 4194 of 2003) 
FEBRUARY 17, 2010 
[MARKANDEY KATJU AND T.S. THAKUR, JJ.] 
Regional Rural Banks Act: s.17(1), second pro.visa. 
Facility of automatic switch over from scale II to scale Ill 
C - Grant of - Held: Facility shall stand granted to the officers 
w.e.f. 16th December, 2002 - However, payment already 
made to employees be not recovered from them for the 
period earlier to 16th December, 2002. 
Computer increment, computer allowance - Grant of -
D Letter dated 6th January, 2003 from Government of India to 
NABARD shows that grant of computer increment to 
employees/officers of RBBs was declined - Since the 
Government's decision denies benefit of computer 
increments, direction issued by High Court requiring 
E respondent-bank to grant the said benefit not sustained. 
Appeal: Government's decision regarding grant of certain 
benefits not challenged in writ petitions filed by aggrieved-
employees before High Court - Plea before Supreme Court 
that Gov.ernment's decision was arbitrary and ought to be set 
F aside by permitting employees to amend the writ petitions or 
by remanding the matter to High Court - Held: Not tenable -
Employees cannot be permitted to challenge the said 
decision in appeal before Supreme Court as High Court did 
not have an occasion to examine the matter in the writ 
G petitiO[IS heard and disposfJd of by it. 
H 
The question which arose for consideration in these 
appeals was whether employees of RRB are entitled to 
the facility of automatic switchover from Scale II to Scale 
872 
CHAIRMAN, MAGADH GRAMIN BANK AND ANR. v. 
873 
MADHYA BIHAR GRAMIN BANK 
Ill and grant of computer increment and computer 
A 
allowance. 
Partly allowing the appeals, the Court 
HELD: 1. The facility of automatic switch over from 
scale II to scale Ill shall stand granted to the officers w.e.f. 
16th December, 2002 subject to the contlitions stipulated 
in the order. However, the payment already made to the 
employees should not be recovered from them for the 
period earlier to 16th December, 2002. [Paras 6, 7] [876-
B 
H; 877-A-E] 
2. A perusal of letter dated 6th January, 2003 from the 
C 
Government of India to NABARD would show that the 
grant of computer increment to the employees/officers of 
RBBs was not favoured by the banks and the NABARD 
which consensus was agreed to by the Government of 
India thereby effectively declining the grant of computer 
D 
increment to the employees/officers of the RRB. The 
decision of the Government was not in question before 
the High Court in their writ petitions. Therefore, there is 
no reason to allow the employees to challenge the said 
decision in these proceedings when the High Court did 
not have an occasion to examine the matter in the writ 
petitions heard and disposed of by it. Since the 
Government's decision denies the benefit of computer 
increments, the direction issued by the Single Judge and 
upheld by the Division Bench in appeal to the extent 
requiring the respondent-bank to grant the said benefit 
cannot be sustained. [Paras 8 and 9] [877-G-H; 878-A-B-
D-H] 
South Malabar Gramin Bank v. Coordination Committee 
E 
F 
of South Malabar Gramin Bank Employees Union 2001 (1) 
G 
SCC 101; All India Regional Rural Bank Officers Federation 
and Ors. v. Govt. of India and Ors. 2002 (3) sec 554, referred 
to. 
Case Law Reference: 
2001 (1) sec 101 
referred to 
Para 2 
H 
A 
87 4 
SUPREME COURT REPORTS 
[2010] 2 S.C.R. 
... 
2002 (3) sec 554 
referred to 
" Para 4 
CIVIL APPELLATE JURISDICITION : Civil Appeal No. 
4194 of 2003. 
From the Judgment & Order dated 4.2.2003 of the High 
B Court of Judicature at Patna in LP.A. No. 84 of 2003. 
WITH 
C.A. No. 4483 of 2003. 
Parag P. Tripathi, ASG, Rakesh Dwivedi, S.B. Upadhyay, 
c ยทDhruv Mehta, Yashraj Singh Deora, .Mohit Abraham, T.S. 
Sabarish, Tannushree Mukherjee (for K.L. Mehta & Co.), K.T. 
Anantharam, Mukti Choudhary, Rahul Dua, Ankit Dalela, Dr. 
R.N. Upadhya (for P.V. Yogeswaran) Kumud Lata Das, Rashmi 
Malhotra, Shalinder Saini (for S.N. Terdal for the appearing 
D parties. 
The Judgment of the Court was delivered by 
T.S. THAKUR, J. 1. These appeals by special leave arise 
out of an order passed by the High Court of Judicature at Patna 
whereby LPA No.84 of 2003 filed by the appellant-bank has 
E 
been dismissed in limine and the order passed by a Single 
Bench of that Court allowing W

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