JUDGEMENT
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(1.) Leave granted.
(2.) This appeal is directed against the order dated December
7, 2005 of the Division Bench of the Patna High Court
whereby the judgment of the learned Single Judge dated
October 12, 2004 dismissing the Writ Petition has been
confirmed. The facts of the case are as under:
(3.) The appellants were appointed as Class IV employees i.e.
Peons in the respondent-Bank in the year 1971. They have
been compulsorily retired by the Bank vide order dated
June 5, 2004 made purportedly under Rules 232 and 235 of
the Bihar Rajya Shakari Bhumi Vikas Bank Samiti
(hereinafter referred to as the "Rules"). Aggrieved against the
order dated June 5, 2004, the appellants filed several writ
petitions in the Patna High Court raising pleas, inter-alia,
that the action taken by the Bank was not justified under
Rule 232 as they had not been retired compulsorily on the
ground of inefficiency and that Rule 235 was not a source of
power so as to justify an order of compulsory retirement as it
only dealt with the grant of contributory provident fund and
gratuity to those employees who had reached the age of 50
years and had completed 30 years of service at the time of
retirement. In response to the notice issued by the High
Court, the respondent-Bank filed its reply. It was, inter-alia,
pointed out that the Bank was grossly over-staffed and being
inefficiently run with the result that it had sustained huge
losses that had brought it to a precarious financial position,
and that before the action had actually been taken against
the appellants, a committee had been set-up which had
examined the entire structure of the Bank and as a follow-
up a large number of offices and Branch Offices had been
closed and a consequent re-structuring made of those which
still continued to operate. It was further highlighted that the
over-staffing of the Bank was evident as against the total
requirement of 166 Peons, 507 had in fact been appointed
and that the decision to compulsorily retire the appellants
had been taken with hesitation and as one of the measures
necessary to ensure the survival of the Bank. It was also
pointed out that the Board of Directors in its meeting held on
December 24, 2003 had examined the relevant facts and
concluded that in the first phase, compulsory retirement
should be ordered of lower grade employees who had
completed 30 years of service and 50 years of age. A copy of
these proceedings have been appended as Annexure P-1 to
the Paper Book.;
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