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RESERVE BANK OF INDIA, BOMBAY versus C.T. DIGHE AND OTHERS

Citation: [1982] 1 S.C.R. 107 · Decided: 27-07-1981 · Supreme Court of India · Bench: A.C. GUPTA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

J. 
.. 
107 
RESERVE BANK OF INDIA, BOMBAY 
v. 
C.T. DIGHE AND OTHERS 
July 27, 1981 
(A.C. GUPTA, R.S. PATHAK AND 0. CHINNAPPA REDDY, JJ.] 
Labour dispute-Changes mude by the employer in the existing scheme of 
promotion during the pendenc.'v of a reference before the Tribunal-Whether suclJ a 
change contravened the provisions of section 33 (I) (a) of the Industrial Disputes 
Act, 1947 giving rise to complaint will depend on the nexus of the changes made 
and the nature of the reference pending before the Tribunal. 
On May 13, 1972 the Reserve Bank of India, Bombay issued Administration 
Circular No. 8 introducing a revised scheme for promotion of employees as staff 
officers Grade A. Feeling that the aforesaid Circular 
adversely affected 
them, the stenographers filed a writ petition in the Andhra Pradesh High Court 
chaHenging its validity, Their grievance was that by the said circular No. 8 they 
were placed en-bloc below the clerks which made their chances of promotion illu-
sory. On March 5, 1973 the Andhra Pradesh High Court dismissed the writ peti-
tion, but made certain recommendations to avoid frustration and dissatisfaction 
among the stenographers. In 1973 charters of demands were submitted to the 
Reserve Bank of India by the employees' associations. On January 23, 1976 the 
Bank issued Administration Circular No. 5 n1odifying Circular No. 8 to remedy 
the alleged adverse effect suffered by stenographers as a result of Circular No. 8 . 
A 
B 
c 
D 
E 
On June 16, 1979, the Central Government in exercise of powers conferred 
by section 7B of the Industrial Disputes Act, 1947 constituted a National Indus-
trial Tribunal with head-quarters at Bombay and referred to it for adjudication 
F 
an industrial dispute existing between the Reserve Bank of India and their Class-
IJI workmen. The dispute as described in the Schedule to the order of refe_rence 
related to "specific matters ........... pertaining to Class-111 workmen" enumerated 
in the Schedule. The Schedule -listed 35 matters in all, item No. 12 of which is 
described as ''promotion". During the pendency of the reference, on October 
10, 1979 the Reserve Bank of India issued Administration Circular No. 6 introdu-
cing certain change in the scheme of promotion set out in circular No. 8 by rela-
G 
xing certain conditions of eligibility for the personal as~istants, stenographers, 
tellers and the clerical staff. Feeling aggrieved, some. clerks (Grade I) who were 
empanelled for promotion to the post of Staff Officer G!'ade A after passi.ng the 
test, filed two complaints before the National Tribunal under section 33A of the 
Industrial Dispute Act alleging (i) that as a result of Circular No. 6 many who 
could n6t have been considered for promotion in preference to the complainants, 
H 
had Circular No. 8 been in force, would now be entitled to a higher preference, 
108 
SUPREME COURT REPORTS 
[1982] ] S.C.R. 
A 
and (ii) that the alterations made during the pendency of the reference before 
the National Tribunal amounted to changing their conditions of service to their 
prejudice in violation of section 33 (I) (a) of the Industrial Disputes Act inasmuch 
as the-ir chances of promotion would recede. The National Tribunal by its 
award dated September 3, 1980 disposed of these two complaints holding that 
the Reserve Bank of India had changed to the p~ejudice of the complainants 
their conditions of service by modifying the existing scheme of promotion during 
B 
the pendency of a reference before the Tribunal and thereby contravened the 
provisions of section 33 (1) (a). 
Hence the appeals by special leave. 
D 
E 
F 
G 
H 
AlJowing the appeals and dismissing the complaints, the Court 
HELD : 1 : 1. The order of reference did not require the Tribunal to adjudicate 
on all possible matters relating to promotion. The Tribunal should have defined 
the area of the dispute referred to it for adjudication before proceeding to consider 
whether the promotional scheme set out in Circular No. 6 could be said to be 
connected with that dispute. (117 G-H] 
1 : 2. 
Item No. 12 of the Schedule annexed to the order of reference is 
described as ''promotion". Demand No. 19 in the Charter of Demands presented 
by the All India Reserve Bank Employees Association mentions "promotional 
avenuei;", but the matters specified under the head "promotional avenues" relate 
to the creation of more promotional posts and the upgrading of certain posts. 
Demand No. 19 does not thus

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