G.P.Mathur, D.P.Mohapatra, C.J. - (1.) The petitioner, a Probationary Officer tn a Bank, has challenged the order by which his services were terminated. There was a difference of opinion between the members of the division bench which heard the writ petition earlier. The Acting Chief Justice vide order dated 16.8.1993 directed that the writ petition be placed before a full bench and that is how the case has come before us for hearing.
(2.) The Parliament enacted the Regional Rural Banks Act (Act No. XXI of 1976) (hereinafter referred to as the Act) to provide for the Incorporation, regulation and winding up of Regional Rural Banks with a view of developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs and for matters connected therewith and incidental thereto. Prathma Bank, respondent No. 2. was established as rural bank in Moradabad in accordance with the provisions of the Act. Section 29 of the Act gives power to make the rules and Section 30 provides that the Board of Directors of a Regional Rural Bank may. after consultation with the Sponsor Bank and the Reserve Bank and with the previous sanction of the Central Government, make regulations to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of the Act. In exercise of the aforesaid powers Prathma Bank (Staff) Service Regulations, 1980 (hereinafter referred to as the Regulations) were made by the Board of Directors of respondent No. 2. Regulations 8 and 10 which are relevant for the decision of the writ petition are being reproduced below : "8. Probation : (1) Every Officer on his appointment in a post in the Bank shall be on probation for a period of two years which shall be extendable upto a period not exceeding one year. (2) Every employee on his appointment in a post in the Bank shall be on probation for a period of one year which shall be extendable upto a period not exceeding six months. (3) Where during the period of probation including the period of extension of probation. If any, the appointing authority is of the opinion that the Officer or employee is not fit for confirmation in the said post : (a) in the case of direct appointee, the service may be terminated by one month's notice or payment of one month's emoluments in lieu thereof : and (b) in the case of a promotee from the Bank's service, he may be reverted to the grade or cadre from which he was promoted, **** 10. Termination of Service by notice : (1) (a) An officer or employee shall not leave or discontinue his service in the Bank without first giving notice in writing to the Chairman of the Bank of his Intention to leave or discontinue the service. (b) The period of notice required shall be : (i) three months in the case of Officer, and (ii) one month in the case of other employee. (c) in case of breach by an officer or employee of the provisions of this sub-regulation, he shall be liable to pay to the Bank as compensation a sum equal to his pay for the period of notice required of him. (d) He shall also be liable to refund the pay or allowances or both, if any, drawn by him while on training and make good the training expenses, incurred by the Bank or sponsor Bank for deputing him for training. (e) In exceptional circumstances the payment of such compensation and refund may be waived by the Chairman, at his discretion. (2) (a) The Bank may terminate the service of an : (i) officer after giving him three months' notice or pay in lieu thereof ; (ii) employee after giving htm one month's notice or pay in lieu thereof ; (b) The power to terminate the service of an officer or employee shall be exercised by the Chairman. (3) Nothing in sub-regulation (2) shall affect the right of the Bank : (a) to retire or dismiss an officer or employee without notice or pay in lieu thereof in accordance with the provisions of Regulations 11 and 30 ; and (b) to terminate the service of an officer or employee without notice or pay in lieu thereof on his being certified by a Medical Practitioner recognised by the Bank, to be permanently incapacitated for further continuous service in the Bank."
(3.) The petitioner was selected for the post of Probationary Officer in Prathma Bank, Moradabad (hereinafter referred to as the Bank). After completion of training, he was issued an appointment order on 23.4.1983 appointing him as Probationary Officer w.e.f. 10.4.1983. Since the terras of the appointment order have a bearing on the controversy raised in the case, the relevant part thereof is being reproduced below : "01. Please refer to our letter No. PBHO/PD based on your performance during the training programme, we are pleased to appoint you as Probationary Officer w.e.f. 10.4.1983 on the following terms and conditions. 02. (omitted)..... 03. The period of your probation shall initially be for a period of 2 (two) years from the date of your joining as probationary officer. This period shall be deemed extended unless and otherwise a letter of confirmation for confirming you in the Bank's service is served upon you. 04. (omitted)..... 05. You will be governed with the terms and conditions of the agreement dated, 04.08.1982 in addition to the terms and conditions of this letter. 06. (omitted)..... 07. (omitted)..... 08. During the period of your probation the Management may terminate your services without entering into any correspondence. 09. You will also be governed by Prathma Bank (Staff) Service Regulations, 1980 as are applicable for the officers of the Bank presently and any incorporatlon/change/alterations/ modifications made afterwards by the Bank in the same from time to time." The services of the petitioner were terminated by the order dated 3.8.1985 which reads as under : "You are hereby informed that your services are no longer required by the Bank. Therefore, your services are terminated from the Bank with immediate effect in terms of Regulation No. 10 (2) (a) of Prathma Bank (Staff) Service Regulations, 1980, read with Prathma Bank (Staff) Service Amendment Regulations, 1982. A cheque No. M/16 No. 411917 for Rs. 3,798 (Rupees three thousand seven hundred ninty eight only) being the salary of three months in lieu of three months notice is enclosed as per the requirement of the aforesaid regulation." The petitioner seeks quashing of this order.;