Pattanaik, J. - (1.) Leave granted.
(2.) These four appeals by way of Special Leave deal with one and the same scheme of amalgamation of the New Bank of India (hereinafter called as the Transferor Bank) with the Punjab National Bank (hereinafter called the "Transferee Bank"). The employees of the Transferor Bank filed Writ Petitions, one by the officers and another by the workmen challenging clause 4(a) (iii) and clause 4 (b) (ii) of the Scheme dated 8th December, 1993 called the New Bank of India (Determination of Placement of Employee (Officers and Workmen) of the New Bank of India in Punjab National Bank) Scheme, 1993 (hereinafter called the "Placement Scheme"). The aforesaid scheme had been framed by the Government of India in exercise of the powers conferred by Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking Act 1980) (hereinafter referred to as "the Acquisition Act"). The employees of the Transferee Bank also filed Writ Petitions in the High Court of Punjab and Haryana challenging the Placement Scheme on the ground that the seniority of the employees of the Transferee Bank has been altered to their disadvantage on account of the principle of seniority indicated in the Placement Scheme and the said Scheme is arbitrary and violative of Article 14 of the Constitution of India. The Division Bench of the Punjab and Haryana High Court dismissed all the Writ Petitions and upheld the provisions of the Placement Scheme and hence these appeals by the Workmen and Officers of the Transferor Bank as well as by the employees of the Transferee Bank.
(3.) Under the provisions of the Acquisition Act of 1980, 14 Banks in the country were nationalised including the Transferee Bank. The New Bank of India Limited was a Private Bank which was taken over by the Central Government under the provisions of the Acquisition Act of 1980 on 15-4-1980. The said New Bank of India incurred financial loss to such an extent and its financial position was so unsatisfactory that its capital and deposits completely stood eroded and the Bank declared a loss of Rs. 11.52 crores in the year 1991-92. The Reserve Bank of India which is the monitoring authority and advisor to the Government of India, on consideration of the financial position of the New Bank of India suggested that it would subserve public interest if the said New Bank of India is merged with another stronger Nationalised Bank. The Government of India finally decided to exercise the powers under Section 9 of the Acquisition Act and in consultation with the Reserve Bank of India decided to amalgamate the Transferor Bank with the Transferee Bank and for the aforesaid purpose brought into existence a Scheme dated 4th September, 1993 called the New Bank of India (Amalgamation and Transfer of Undertaking) Scheme 1993 (hereinafter called "The Amalgamation Scheme"). Under the aforesaid Amalgamation Scheme, the undertakings of the Transferor Bank stood transferred to and vested in the Transferee Bank and the effect of such vesting was that all assets, rights, powers, authorities and privileges and all property movable and immovable, cash balance, capital reserve funds, investments and all other rights and interests in, or arising out of such property as were immediately before the commencement of the Scheme in the ownership, possession, power or control of the transferor bank in relation to the undertakings, whether within or outside India and all books of accounts, registers, records and all other documents of whatever nature relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the transferor bank in relation to the undertakings deemed to have been transferred to and vested in the transferee bank. Clause 4 of the aforesaid Amalgamation Scheme is extracted hereinbelow in extenso:-;