NEW BANK OF INDIA EMPLOYEES UNION Vs. UNION OF INDIA

JUDGEMENT

(1.) This Special Civil Application is filed to issue a writ of mandamus or any other appropriate writ order or direction directing the respondent not to discontinue or remove petitioner No. 2 from the post of workmen Director of the New Bank of India on the Board of Directors until the successor is appointed by the respondent after following due procedure laid down in clause 3(b) read with clause 2(h) of the Schedule to the Nationalised Banks (Management and Miscellaneous Provisions) Scheme 1980 (hereafter referred to as the Scheme) and the Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 (hereafter referred to as the Act).

(2.) Mr. Vyas the learned Counsel appearing for the petitioner questions the legality of discontinuing the workmen Director as and from 1-9-1987. even before a workmen Director is appointed on the Board of Directors of the Bank. The learned Counsel submits that Board of Directors cannot function even a single minute without having a Director representing the workmen as envisaged by sec. 9(3) of the Act. If it is said that as per clause 9 of the Scheme the workmen Director cannot hold office for more than 3 years and he can hold office only during the pleasure of the Central Government the said clause is ultra vires sec. 9(3) of the Act It is the further submission of the learned Counsel Mr. D D. Vyas that the classification of the Directors of the Bank regarding the term of office mentioned in clause 9 of the Scheme is discriminatory in character and as such it offends Art. 14 of the Constitution. Finally the learned Counsel contended that clause 9 of the Scheme which states that the Director will hold office during the pleasure of the Central Government will lead to arbitrariness and also will result in circumventing sec 9 of the Act by not appointing or continuing the workmen Director on the Board of Directors.

(3.) We have carefully considered the abovesaid submission made by the learned Counsel appearing for the petitioner herein. Section 9 of the Act empowers the Central Government to make scheme. Section 9(3) of the Scheme states Every Board of Directors of a corresponding new bank constituted under any scheme made under sub-sec. 1 shall include: