LexSHRI DEVENDRA MANAGEMENT TRAINEES AND ORS. versus PUNJAB NATIONAL BANK
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SHRI DEVENDRA MANAGEMENT TRAINEES AND ORS. A v. PUNJAB NATIONAL BANK NOVEMBER 26, 1993 [AM. AHMADI AND N. VENKATACHALA, JJ.) Service Law-Banking Companies (Acquisition and Trans/ er of Under- takings) Act, 1970/T7te Punjab National Bank (Officers) Service Regulations 1979: Ss. 12(2), 19/Regulation 13--Management Trainees-Selection of members of Scheduled Castes/ Scheduled Tribes working in clerical cadres B c on condition of passing Bank's confirmation test, passing Part-I ·of Indian Institute of Bankers Examination etc.-Revision of Pay structure during train- ing-Circular No. 492 dated 16.l.198o-Management Trainees on regular pay D scale one day prior to appointed date given the benefit of fitment formula- Appellants not being in any regular time scale formula-Appellants not being in any regular time scale governing managerial staff, on appointed date Bank fixed their pay at the initial stage of time scale waiving all conditions regarding confirmation-Held, Bank cannot be said to have acted arbitrarily nor can it be said that it had discriminated against appellants and violated Articles E 14/ 16 of the Constitution. The appellants were members of Scheduled Castes/Scheduled Tribes and were working in the clerical cadres of the respondent-Bank. They were selected as Management Trainees on the condition that they would be on p training for two years and would be considered for confirmation on their getting satisfactory report about their training, passing bank's confirma- tion test and passing part I of the Indian Institute of Banker's Examina- tion. They were to receive consolidated emoluments of Rs. 700 per month during the first year of the training, total emoluments admissible to a 'C' Grade Officer at the initial stage of Rs. 700 along with usual allowances G in the second year, and in the third year they were to be placed in the time scale with two advance increments and were to begin at the basic salary of Rs. 760 per month in the time scale of 700-1315, provided they successfully cleared the confirmation test. The appellants commenced the training w.e.f. 13.11.1978. Meanwhile, the respondent-bank formulated the Punjab H 855 856 SUPREME COURT REPORTS [1993) SUPP. 3 S.C.R .. A National Bank (Officers) Service Regulations, 1979 which come into force w.e.f. 1.7.1979 bringing over the managerial cadres to the revised pay structure according to the fitment formula evolved thereunder. B A1> regards the fitment in the case of Management Trainees, the Bank issued ·Circular No. 492 dated 16.1.1980 providing that the Management trainees drawing consolidated emoluments on 30.6.1979 would be placed in the Junior Management Scale i.e. R. 700-1800, at basic pay of Rs. 700 with usual allowances w.e.f. the appointed date i.e. 1.7.1979 and the Management Trainees who were placed in Grade 'C' before the appointed date were to be refitted like other officers of the Bank. The appellants who C were covered under the first part of the Circular, filed a departmental appeal which was dismissed. Their writ petition was summarily rejected by the High Court. Hence the appeal by Special leave. It was contended on behalf of the appellants that the circular dated D 16.1.1980 prejudiced them and being arbitrary and discriminatory, it was violative of Articles 14 and 16 of the Constitution; they should have been granted the benefit of fitment like any other employee belonging to managerial cadre and their pay should have been fixed at Rs. 950 in the· time scale of Rs. 700-1800, but the bank erred in fixing their pay at Rs. 700 as a result of which they suffered in two ways • firstly, they were not given E (he benefit of fitment formula, secondly their dearness allowance shrunk from 93% to 51 % under the revised D.A. formula. Dismissing the appeal, this Court F .HELD : 1.1. The bank cannot be said to have acted arbitrarily with G intent to prejudice the appellants nor can it be said that it had deliberately discriminated against the appellants by evolving the fitment formula found in Circular dated 16.1.1980 and thereby violated Articles 14/16 of the Constitution. [864-H] 1.2. On the appointed date the appellants not being in any regular time scale governing·the ma~agerial staff, were not entitled to be placed in the corresponding revised scale adopted by the bank under the Regula- tions pursuant to the implementation of the modified Pillai Committee report and, under the let
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