GENERAL MANAGER [OPERATIONS] STATE BANK OF INDIA versus STATE BANK OF INDIA STAFF UNION AND ANR.

Citation: [1998] 2 S.C.R. 377 · Decided: 20-03-1998 · Supreme Court of India · Bench: SUJATA V. MANOHAR · Disposal: Appeal(s) allowed

Judgment (excerpt)

GENERAL MANAGER [OPERATIONS] 
STATE BANK OF INDIA 
v. 
STATE BANK OF INDIA STAFF UNION AND ANR. 
MARCH 20, 1998 
[SUJATA V. MANOHAR AND D.P. WADHWA, JJ.) 
Labpur Law: 
A 
B 
Industrial Disputes Act, 1947-Section 9A-Conditions of service- C 
Change in-Participation in election of Municipal Council and local 
bodies-Circulars requiring employees of Award staff of Bank to give an 
undertaking to resign from bank if elected in the election--Similar policy 
practised by bank prior to the Circulars-Whether the circulars violative of 
section 9A-Held, No, since they do not bring about any change in the D 
conditions of service. 
Section 9A Schedule JV-Conditions of service-Participation in 
election of Municipal Council or local body-Whether customary privilege 
connected with conditions of service-Held, no. 
Appellant Bank issued Circulars dated 28.1.87 and 7.3.87 to the effect E 
that the employees intending to contest the elections of Municipal Council 
or local body while seeking permission to contest the election would be 
required to give an undertaking that in case he gets elected he would resign 
from the bank. Even prior to these circulars rule of conduct of award staff 
of the bank was that the employees could not accept the office of Municipal F 
'( 
council or public body without prior sanction of the bank. 
Respondent No. 2 sought permission from the Bank to contest election 
to Municipal Council, he filed his nomination before receiving the permission. 
Thereafter he was informed that he could be granted permission only if he 
gave an undertaking that he would resign from the service of the bank if he G 
gets elected. He filed writ petition before the High Court, challenging the 
Circulars. High Court set aside the Circulars holding that the Circulars 
amounted to change in the conditions of service of workmen and were 
violative of section 9-A of the Industrial Disputes Act. 
Allowing the appeal, this Court 
377 
H 
378 
SUPREME COURT REPORTS 
[ 1998] 2 S.C.R. 
A 
HELD: I.I. The Circulars dated 28.1.1987 and 7.3.1987 cannot be 
said to violate Section 9-A of the Industrial l)isputes Act, 1947. The circulars 
do not bring any change in the conditions of service of a workman. Under 
Section 9-A, no employee, who proposes to effect any change in the conditions 
of service applicable to any workman in respect of any matter specified in 
the Fourth Schedule, shall effect such change without notice as prescribed 
B in that section. Schedule Four sets out the conditions of Service for change 
of which notice is required to be given under section 9-A. The conditions of 
service prescribed in the fourth Schedule include, i.nter-alia, wages, 
contribution to any provident fund or pension fund, compensatory and other 
allowances, hours of work, leave etc. Condition 8 is "withdrawal of any 
C customary concession or privilege or change in usage." These customary 
concessions or privileges clearly relate to conditions of service or words 
participating in an election to a Municipal Council or local body is not a 
customary privilege connected with conditions of service or work. 
[380-C-E] 
D 
1.2. The rules of conduct of the Award staff have always included a rule 
to the effect that the employee of the bank may not accept office of Municipal 
;.-,_ 
Council or other public body without prior sanction of the bank. The Circulars, 
therefore, do not bring about any change in this policy. [378-H; 379-A] 
CIVIL APPELLATE JURISDICTION : Civi) Appeal No. 7264 of 
E 1996, 
F 
From the Judgment and Order dated 26.8.1991 of the Andhra Pradesh 
High Court in W.P No. 3161 of 1987. 
Harish Salve, A.V. Rangam, A. Ranandhan, Buddy A. Rangandhan and 
Muhammad Ali for the Appellants. 
The Judgment of the Court was delivered by 
MRS. SlJJA TA V. MANOHAR, J. The appellants, representing the State 
Bank of India have challenged a decision of the Andhra Pradesh High Court 
setting aside a Circular issued by the State Bank of India dated 28.1.1987 as 
G also a Circular in the same terms dated 7.3.1987, as violating Section 9-A of 
the Industrial Disputes Act, 1947 read with the Fourth Schedule. The 
respondents to the present appeal are the State Bank of India Staff Union, 
Hyderabad Circle and the second respondent who is a person aggrieved by 
the Circulars. 
H 
The Rules of Conduct of the Award staff of the State Bank of India 
, 
G.M. [OPERATIONS) S 8.1. v. S.8.1. STAFF UNION [SU.IATA Y. MANOHAR, J J 379 
which were in force at all materi

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