N RAJAKUMAR Vs. MANAGEMENT OF INDIAN BANKMADRAS

JUDGEMENT

(1.) Since the issues involved in both these writ appeals are substantially the same, they are dealt with together. W. A. 363 of 1982 arises out of the judgment of Mohan, J. in W. P. 3796 of 1982, and W. A. 366 of 1982 arises out of the judgment of the same learned Judge in W. P. 3797 of 1982.

(2.) The first writ petition has been filed by one Rajkumar for the issue of a writ N. Rajakumar vs. The Management of Indian Bank, Madras (15.07.1982 -MADHC) Page 2 of 5 of certiorified Mandamus for quashing the circular dated 19-2-1982, issued by the Management of the Indian Bank and to direct the said Bank to allow him to continue to do his business as Tiny Deposit Collector by enumerating new customers to earn his commission. The other writ petition has been filed by the Tamil Nadu Bank's Deposit Collectors Union for quashing a somewhat similar circular issued by the Canara Bank and for a direction forbearing the said Bank from giving effect to its circular so far as it relates to the Nithyanidhi Deposit Collectors.

(3.) The circumstances under which the impugned circulars had been issued by the respective banks may briefly be stated. The Indian Bank evolved a scheme for mobilising small deposits from sections of public like traders, wage-earners, transport operators, fishermen, farmers etc, who could save small amounts daily or weekly. The petitioner in W. P. 3796 of 1982 is one of the Tiny Deposit Collectors Ashok Nagar branch of Indian Bank. The Tiny Deposit Collectors will go to these tiny depositors and collect the deposits. The Deposit Collectors open accounts and collect the deposits from the customers and the amounts collected will be deposited in the bank. They will get a commission at the rate of 3 per cent on the total collections made by them for each month. They have to provide a cash security of Rs. 500 at the time of executing the agreement. Ten per cent of the commission earned by them will be withheld by the Bank ass security for their good behaviors as per the terms of the memorandum of agreement. By a circular dated 19-2-1982, addressed to all the branches in the zone it was stated that the intention of the Bank was to discontinue opening of new accounts under the tiny deposit scheme and that therefore the branches were not to open fresh accounts under the tiny deposit scheme and that therefore the branches were not to open fresh accounts under the said scheme. It is the validity of the said circular that has been challenged in W. P. 3796 of 1982 and the impugned circular is a follows- "To all branches of our Zone Dear Sir, Ref: Tiny Deposit Scheme:- I has been decided by our Head Office to discontinue opening of fresh accounts under the tiny deposit scheme. Hence, branches are instructed not to open fresh accounts under the scheme. Hereafter a suitable advertisement will be published in newspapers shortly by our head office for information of public."