- (1.) LEAVE granted.
(2.) INTERPRETATION of Regulation 26 of the Andhra Bank (Officers) Service regulations, 1982 framed under Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (for short, 'the Act')is the question involved herein. Parliament enacted the Act to provide for the acquisition and transfer of the undertakings of certain banking companies, having regard to their size, resources, coverage and organization in order to further control the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote welfare of the people, in conformity with the policy of the State towards securing the principles laid down in clauses (b) and (c) of Article 39 of the Constitution and for matters connected therewith or incidental thereto. Section 3 of the Act provides for the transfer of undertakings of the existing banks. Appellant bank is a 'new Bank' within the meaning of the provisions of the said Act. Undertaking of the existing bank in terms of the said Act vested in the 'new Bank'. Section 8 of the Act provides that every corresponding 'new Bank' shall in the discharge of its functions be guided by such directions in regard to the matters of policy involving public interest as the Central Government may, after consultation with the governor of the Reserve Bank, issue. Section 19 of the Act empowers the board of Directors to make regulations, sub-section (1) whereof is in the following terms : "19. Power to make regulations.-- (1) The Board of Directors of a corresponding new bank may, after consultation with the Reserve Bank and with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations, not inconsistent with the provisions of this Act or any scheme made thereunder to provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this Act. " Indisputably, the Board of Directors, in consultation with the Reserve bank of India and with prior sanction of the Central Board, made regulations, Regulation 26 whereof reads as under : "26. Bank's car for personal purposes : 1) No officer, other than the Officers authorized by the board, in accordance with the guidelines of the government, shall be allowed the use of the Bank's car for personal purposes. 2) The use of the Bank's car for personal purposes should be subject to the rules formulated by the Bank in accordance with the guidelines of the Government from time to time. " The Board of Directors framed a scheme as regards reimbursement of the amount expended by the officers for undertaking their journey by car from their respective residences to the bank and back. A circular letter was issued on 20/4/1983 to the said effect, clause (3) whereof reads as under : JUDGEMENT_813_TLPRE0_2008Html1.htm
(3.) IN its meeting dated 20. 2. 1985, a scheme was formulated by the Bank which was circulated to all concerned in terms of its letter dated 7. 3. 1985, the relevant part whereof reads as under : "1. Travel from residence to office and back is to be considered as travel for office work (as far as reimbursement of conveyance expenses is concerned ). " The Central Government, however, by reason of a circular letter dated 25. 4. 1990 addressed to the Chief Executive of all public sectors banks, inter alia, stated : "the to and from journeys between office and residence should not be treated as official journeys and no reimbursement for such journeys be made. The claim duly countersigned by an officer at least one step higher than the officer claiming the reimbursement for the entire month should be submitted only once. However, the officers in scale IV and above may not get their vouchers countersigned. " The said letter was circulated by the Indian bank Association. A writ petition was filed by the respondents herein before the Andhra pradesh High Court questioning the validity of the said purported guidelines issued by the Central Government. During the pendency of the said writ petition, the Board of Directors issued a circular letter dated 22. 2. 1991, the relevant portion whereof reads as under : "keeping in view the prevalent situation, we are informed by the Indian Banks' Association vide its letter No. PD/cir/76/e (x)/2208 dated 25. 1. 1991 that in its discussions held with the Officers' organisations on the above issue, the Officers' organisations had indicated their inclination to accept some reduction in the consumption of petrol and subsequently, some of the senior leaders of the Officers' Organisations met the chairman of the Indian Banks' Association and conveyed to the IBA writing to the banks to bring about a cut in petrol limits, it being the need of the hour. Accordingly, it has been decided to bring about a cut in the petrol limits of the officers owning vehicles and covered under the Scheme 'b' and bring about uniformity in all the Public sector Banks. In view of the above, the revised limits for reimbursement of conveyance expenses to Officers under Scheme 'b' (for the officers owning vehicles) as against the existing limits shall be as under with effect from 1. 3. 1991. . . " ;