OFFICERS' CAUSEDECEM BER - 2015

Vol. 35 No.12 BANGALORE Single Copy : RS. 4/- DECEMBER - 2015

2N A T IO N F IRST, O RGA N ISA T IO N N EX T, IN D IV ID U A L LA ST

Editorial

n their anxiety to appease the westernpowers and to provide comfort to stock

market after the result of Bihar Election,Government has permitted further dose ofForeign Direct Investment (FDI) in nearly 15sensitive and strategic sectors such as Defenseand Banking etc., which has come as a rudeshock especially to the trade unions and smallbusiness sectors all over the country.

This decision is without looking into therepercussion to the local Industries and trade.Opening up of the branded item may kill thelocal Industries and markets. Similarly the FDIin the plantation sectors such as in tea, coffeeand other cash crops areas will kill the localcultivators as nearly 90 percent of them arefrom the small sectors who are alreadystruggling not able to get the minimum supportprice for their products.

The Government should have attempted to sortout the increasing problems of labour and alsocreated avenues for the job opportunities ratherallowing the MNC’s further leverage with theforeign investment in the country. TheGovernment is still working towards 100% FDIin several sectors and providing all thecomfortable legal protection to the MNC’s in

RELAX ATION OF FD I NORM S

the name of attracting foreign investment inthe country, thereby killing the domesticindustry.

This attempt is only to appease foreign companiesabout India’s reform agenda. The Governmentis adopting multipronged attack on the labour inthe country, while, attempting to dilute itsownership in several sectors and allow the privateparticipation. If the privatization is notimmediately possible, they try to providecomfort to the private investment and also FDIwith stringent labour laws, thereby underminingthe role of the Trade Unions in the country.The attack on the Public Sector Banks by notproviding adequate capital required and theproposal to reduce its stake in Public SectorBanks is aimed at privatization of some of thePublic Sector Banks in a phased manner. TheUnions under the banner of the United Forum ofBank Unions have already spearheaded itsstruggle against any dilution of the Government’sequity in the Public Sector Banks. They areinsisting for the full recapitalization of all thePublic Sector Banks by the Government ratherdiluting its control and ownership. In the areaof Insurance and Pension, the Government hasalready encouraged the private participation andits decision to encourage further foreign

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SU CCESS A W A IT S A T T H E D O O R W H ERE D IL IGEN CE IS

Officers' Cause, December - 2015 3

investment is bound to endanger the social securitythat was made available by the Life InsuranceCorporation in our country. The foreigninvestment both in insurance and pension wouldharm the interest of the common man.

Despite the opposition, the Government wentahead, for opening up of the Defense Sector forforeign investment in the name of advancedtechnology in the defense, while the countryhad enough resources and capabilities fordeveloping advanced weapons rather dependingupon the foreign technology and investment. Thepresent announcement of further relaxation isbound to create a lot of opposition both inside aswell as outside the Parliament.

The growing industrial unrest should have beenyet another area of concern for the Government.The growing unemployment needs to be tackledon priority basis rather inviting FDI in various

sectors.

The working class is at the receiving end. TheGovernment has systematically in a calculatedmove, taken steps to dismantle the existinglabour departments in the States which weresupposed to protect the interest of the workingclass in the country. The Trade Unions, inparticular the Central Trade Unions have decidedto launch stiff agitation and fight against thesinister design of the Government in allowingFDI in several sectors over and above alreadypermitted by the Government.

The Co-ordination of Central Trade Unions isexpected to chalk out a detail programmeagainst the series of measures that have beenunleashed by the Government as a part of itsopening up of the economy including the FDI insectors which could have been managed by thedomestic players.

From the text of Circular No. 2015/ 78 of AIBOCdated 2nd Dec 2015.

The st rike call given by our Confederat ion has setthe issues rolling ! Our Not ice of st rike and manyreminders ul t imat ely compel led t he IBA t orespond. We have received a communicat ion refno.HR & IR/ 2015-16/ XBPS/ J / 1722 d t .01.12.2015. Though the response is on the linesof t he st and t aken by IBA t hroughout t hediscussions on Xth Bipart ite Set t lement and givenin the Record Note signed on 25.05.15 alongwiththe Joint Note for salary set t lement , yet IBA hasacknowledged that these are the issues which arepending and needs resolut ion through mutualdiscussions. We have prompt ly replied to theircommunicat ion in a logical way supported by thelaid down provisions and pract ices vide our let terref no. IBA/ 128 dated 02.12.2015.

We further have to advise that Dy. CLC (C) hasinvited us for conciliat ion talks on 8 th December,2015 at 12.00 pm at Mumbai vide Ref. no. 8(7)/2015-S.I dt. 02.12.2015.

We request our members not to be complacenton t hese development s and be in f u l lpreparedness for the success of our call, t ill thereis any posit ive development , conveyed by thecentral off ice.

Comrades, this is a historic call of agitat ion givenby our Confederat ion and possibly the f irst suchcall given by a single Of f icers’ organizat ion.Therefore, it is all the more necessary to ensureits success to give a message that we are theOrganisat ion which can alone protect the interestof the off icers working in the banking industry,ent ire

workforce and common masses. Let us reach outto all stake holders and ensure to sensit ise themabout t he evil designs of the cartel formed todest roy the Public Sector Banks (PSBs), t heworking condit ions of its employees through mult ipronged at tacks leading to privat izat ion of thePSBs - the lifeline of Indian economy.

CALL FOR STRIKE BY A IBOC EVOKES RESPONSEIBA REPEATS ITS OLD STAND - REPLIED BEFITTINGLY

DY. CLC (C) INV ITES FOR CONCILIATION

OrganisationalI ssues

A RISE, A W A KE, ST O P N O T T ILL T H E GO A L IS REA CH ED

4 Officers' Cause, December - 2015

s expected the Pay Commission headed byJustice A.K. Mathur has submitted a

comprehensive 7th Pay Commission report to theGovernment of India recommending verysubstantial improvements in all aspects of the salaryscales and allowances in respect of the Civilservants as wel l as the Pensioners in theGovernment. The revision to the Governmentservants is expected to cost more than ̀ 1.02 lakhcrore to the exchequer. The Commission hasrecommended a hike of 16% in pay and 63% inallowances. The Pensioners are expected to get anincrease in their pension to the extent of 24% thusproviding a hefty increase in the pension receivedby the Pensioners and Family Pensioners of theGovernment.

2. The 7th Pay Commission will benefit over 47 lacemployees and over 52 lac Pensioners and familyPensioners all over the country. The Pay commissionhas also recommended for the introduction of onerank and one pension in respect of the civil servantswhich includes the para-military as well as therailway retirees. The Pay Commission has alsorecommended for automatic up-dating of pensionwhen the dearness allowance payable increasesby 50% of the basic pay.

3. The HRA has been reduced taking into accountthe increase in the basic pay on account of therevision. The HRA rates are 24%, 16% and 8% ofthe new basic pay for class X, Y and Z cities. One ofthe major recommendations of the Pay Commissionhas been abolition of Grade Pay and the same hasnow been merged with the scales as expected duringthe last occasion. The Grade Pay was made eligibleon the earlier occasion to all the benefits andallowances and hence it was a natural thing thatwas expected of the Pay commission during thecurrent report.

4. The Civil servants at the higher grades wouldget almost 300% jump in their basic pay since the

7TH PAY COMMISSION REPORT SUBMITTEDBONANZA FOR THE CIVIL SERVANTS

SUBSTANTIAL IMPROVEMENTS IN SUPERANNUATIONPAY SCALE RANGE MINIMUM ` 18,000/- MAXIMUM ` 2,50,000/-

maximum pay has now been fixed at ̀ 2,50,000/-The percentage of increment has been retained at3%. The number of allowances have been reducedeither by merger of allowance or by introduction ofnew allowances in the name of rationalization ofsalary structure.

5. The Pay Commission has recommendedenhancement of the Gratuity Payable under gratuityact from ` 10 lac to ` 20 lacs which is quitesubstantial increase apart from the improvement inthe pension benefits.

6. There is a substantial increase for Central Govt.Employees Group Insurance Scheme, monthlydeduction and insurance amount, with proposal forintroduction of a Health Insurance Scheme foremployees and pensioners.

7. The Government has taken immediate steps toset up a secretariat for the implementation headedby the Expenditure Secretary and the HonorableFinance Minister has declared that theimplementation of the 7th Pay Commission Reportwill ensured without further delay.

8. The recommendations of the Pay Commission areeffective from 1.1.2016. The 6th pay commissionwas effective from 1.1.2006 and the Government isexpected to accept the recommendations at an earlydate and announce the payment of the revisedsalaries to the civil servants at the earliest.

9. The 7th Pay Commission when implemented isbound to create lot of hopes and aspirations amongstthe other sections of the employees including theemployees in the financial sector with particularreference to the superannuation benefits that havebeen extended to the Government Pensioners inthe country. The Pay Commission recommendationsare bound to impact and influence ourfuture negotiations as far as the 11th BipartiteSalary Revision is concerned which is hardly 2 yearsahead.

A

Officers' Cause, December - 2015 5W O RK IS W O RSH IP , D O YO U R D U T Y

Text of AIBOC Circular No. 2015/74 dt. 19.11.2015

QUOTE:Against the Govt’s move to dilute stake in the IDBIBank, the employees and officers have decided to goon a nat ionwide st rike on November 27. Theemployees and officers of IDBI Bank are on agitationpath opposing the contemplated move of theGovernment of India to privatize IDBI Bank by dilutingi t s shareholding to below 51% f rom 76.5%,throughout the country. AIBOC, the largest inclusivetrade union of the supervisory organization in thebanking industry, has been extending all support tothe agitating comrades of IDBI Bank. Com. Soumyadatta and Com. Sanjay Das, the President andSecretary, respect ively, of West Bengal StateCommittee addressed the Dharna at Kolkata toexpress our solidarity and extend fraternal supportto the movement of the officers in IDBI. Local Officersof IDBI posted around Kolkata have expressed theirdesire to form an organization under the umbrellaof AIBOC in order to garner support from such amammoth organization. In Odisha, Andhra Pradesh,Maharashtra, Delhi and other parts of the countryalso the AIBOC is taking an active role to stand bytheir side. In Odisha, in absence of Central leaders,Com. Amit Motayed, former State Secretaryaddressed t he Dharna, in Hyderabad, Com.Harshvardhana M., Advisor, AIBOC and in Mumbai,Com. Ram Kumar Sabapathy, President, MS I havebeen providing all fraternal support. In Delhi, alsoAIBOC leadership has extended solidarity with theagitat ing comrades. We request all our Statecommit tees to extend all support to agitat ingcomrades of IDBI Bank and make all out efforts toorganize t hem under t he umbrel la of ourConfederation.

We strongly oppose the move of the Government andreiterate our demand to convert IDBI into adevelopment financial institution.

Mass Casual Leave taken by United Forum ofReserve Bank Officers and Employees

17000 employees of Reserve Bank of India affiliated

A IBOC EX TENDS FRATERNA L SUPPORT TO AGITATINGCOM RA DES OF IDBI A ND RBI

to four recognised Unions of Officers and Workmen,under the banner of United Forum of Reserve BankOfficers & Employees’ observed strike in the form ofmass leave on November 19, 2015, paralysing RBIfunctions all over the country. The protest was todemand improvement in pensions and to protestagainst the move to dilute the Central Bank’sautonomy by the Government who is keen to virtuallytake over the function under the pretext of LegislativeReforms Commission headed by Justice Sri Krishnaset up by the Government of India. The Ministry ofFinance is reportedly giving f inal shape to shiftGovernment’s debt management functions from RBIto the proposal Public Debt Management Agency(PDMA), which will also henceforth function asdepository of Government securities (G-Sec), thatwas the exclusive jurisdiction of RBI so far. This isthus taking away from RBI some vital operationshaving relevance to money market as well. The callfor agitation had been given to press mainly thedemands of saving the RBI f rom the proposedmechanism of Monetary Committee (MPC) andaimed at “Crippling the apex bank in the name ofthe draft financial code and legislative reforms”.

The RBI staf f has also been demandingimprovement in pension condit ions, under whichpensioners are not entitled to periodic updation ofpension. Updation of pension was granted to pre –2002 retirees by the RBI Central Board, but theGovernment withdrew it unilaterally.

The Mass Casual Leave program was a thunderoussuccess with the participation of all the officers andemployees, throughout the country. In all the majorCities, dharna and rallies were organized where inthe leadership of AIBOC was also present .Throughout the country from cheque clearance toforeign – Exchange, and remittance transaction gotaffected profusely. It is a land mark victory in theTrade Union movement.

We congratulate all the comrades of RBI and wishthem success in their struggle. We also assure toextend all fraternal support to them.

LET CUSTOM ER SERVICE BE OUR M OTTO

5 Officers' Cause, December - 2015

he Confederation had raised the issue of paymentof TA/DA to Charge Sheeted Officers and

Prosecution Defense Witnesses etc., since they were notbeing paid these allowances in many banks. TheConfederation pursued the matter through CVC forissue of suitable directions to the IBA through theFinancial Services, Ministry of Finance in this regard.The IBA has now sent a detail communication quotingthe CVC guidelines for payment of these allowancesas represented by the Confederation.

PAYMENT OF TA/DA TO CHARGE SHEETED OFFICERSAND PROSECUTION/DEFENCE WITNESS

2. As these payments were already being paid by StateBank of India, there was no issue as such. Further, thequestion of Disciplinary Proceedings after retirementis governed by the Rule 19(3) and the enquiry wasconsidered as a normal enquiry and the officialsattending these enquiries were being paid theallowances as per their entitlement. However, if thereare any instances of refusal of payment of TA/DA etc.,the matter may be taken up by the respective membersthrough their circle association quoting the instructionsissued by the IBA on the subject.

very year in the confirmation test conducted byIBPS for POs/TOs / JMGs / MEs, few officials

are invariably put into trouble based on their answersheets using the theory of probabilities who werecharged by the IBPS for copying. In majority of thecases, when charge sheet was issued, theManagement could not prove the charges and theofficials were exonerated or given an administrativewarning.

2. Using the theory of probabilities in the IBPS ismaking a mockery of our examination system assenior officers are deployed as invigilators andsenior officials also undertake surprise visits to theexamination centre during the conduct of theexamination and supervise the process punishingthe officers on the ground that they have furnishedsimilar wrong answers is against the principles ofnatural justice, and it is highly demotivating the

A LLEGED M ALPRACTICES IN IBPS EX A M INATIONS

young officers besides affecting their career badly.

3. Of late, based on the IBPS findings alone, theProbation is extended which demoralises theofficers. Most of these officers are highly talented,well qualified and they have passed a very toughexamination to become an officer in the Bank. Someof them who have quit because of these allegationsare now better placed in other Banks. The right toa fair hearing (audi alteram partem) is not practicedthis year in many cases while withholding thepromotions and extending the probationary period.Federation had requested the management permitall these officers to attend a re-test and if they getthrough provide them confirmation from the dateon which the rest of the batch mates were confirmedin service and also promote them to scale II basedon the cut off mark and to have a relook on the IBPSexamination.

tate Bank of India Officers’ Association NorthEastern Circle had celebrated the 28th General

Body Meeting of the Circle Associat ion at theGuwahati Medical College Auditorium, Guwahati.More than 1,500 members were present, representingthe seven states of NE Circle in the presence thegalaxy of leaders of the Federation representing allthe circles.

2. The Children of SBIOA Public School renderedmelodious song. Comrades escorted the dignitariesto the dais. Com.David Khire and Samir KumarMukherjee were the star attraction of the day sinceboth of them were laying down their off ice onsuperannuation from the bank service after a gloriousinnings in the Circle Association for the last severalyears.

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28TH ANNUAL GENERAL BODY M EETING OFSBIOA(NE) CIRCLE A GRAND SHOW OF UNITY

AND SOLIDARITY OF M EM BERS A BEFITTING FARE WELL TOSTALWARTS OF THE CIRCLE ASSOCIATION - COM.DAVID KIRE,

VICE PRESIDENT AND COM .SAM IR M UKHERJEE,GENERAL SECRETARY OF THE CIRCLE ASSOCIATION

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OrganisationalDevelopments

BE TRUTHFUL, BE FEA RLESS

Officers' Cause, December - 2015 7

3. The dignitaries who were present on the daisincluded apart from Shri.P.V.S.L.Narsimha Murti, theChief General Manager, N.E.Circle as well as theinaugurator of the function, Sarvashri. Dr. Srivastava-Economist JNU, D.T.Franco Rajendra Dev, President-AISBOF, Y.Sudarshan General Secretary-AISBOF,Ramakumar Sabapathy, Jt . General Secretary-AISBOF, Sanjeev Kumar Mishra, Sambit Mishra, andot her of f i ce bearers of various ot her CircleAssociation.

4.Com.David Kire, the President of the 28th GeneralBody Meeting and Com.Sameer Kumar Mukherjee,the General Secretary of the Cicle Association werefelicitated amidst thunderous applause from themembers present in the auditorium.

5.Com. Mukherjee extended a warm welcome to allthe dignitaries and the invitees on the occasion. Healso gave a brief account of the circle activities andcovered in his address the present challenges thatthe country is passing through in addressing to thechallenges and impact of the globalization etc.,

6. Shri.PVSL Narasimha Murti, the Chief GenealManager accompanied by all the dignitaries whowere present on the dais lighted the lamp to signifythe inauguration of the General Body Meeting.Thereafter in his inaugural address, he complimentedthe contribution of the trade unions and the workersmovement in building and wished that the same spiritshould be imbibed in building the nation. He referredto the various benefits that have accrued to theofficers through the efforts of the Circle Association.He also expressed his happiness over being one ofthe members of the Circle Association. He madereference to the various initiatives of the Bank andthe need for the Association to involve itself inpopularizing the various schemes such as SakshamProject, Sajjan Shakti etc., which is meant to developthe nation. He complimented to the strength of theworkforce which is now becoming more and moreyoung and energetic and should be able to take thebank to greater heights in the days to come. Heexpressed his compliments and good wishes toCom.Samir Mukherjee who is retiring from the activeservice of the bank and wished him a happy andcontended retired life.

7.Com.Y.Sudarshan, General Secretary of t heFederation and President of AIBOC, expressed his

happiness over the occasion and complimented thecircle in organizing such a wonderful meeting whichis taking place on the banks of river Brahma Putra.He compl imented the members of the Circleassociation for their wonderful organizing ability andconveyed his good wishes to all the members of theCircle Association. He referred to the trade unionmovement in the Circle. He also referred to theretirement of both Com.Kire and Com.Mukherjee,of the Assocaition who were responsible for theachievements of the Federation as well in theirparticipation as leaders of the Federation over thelast several years. He appreciated the contributionof both the leaders in ensuring a young and energeticteam coming up to take over the mantle of theassociation after their retirement.

8. He thereafter deliberated on the various challengesthat confronts the Public Sector Units including theBanking Industry which could withstand the sunamiof 2008 of the US economic recession due to theinternal strength of the banking industry which dueto the role played by the trade unions in the country.He also referred to the systematic attack of thesuccessive Governments on the working class andtheir attempts to dilute all the labour laws in orderto accommodate the corporate world.

9. He also complimented the young team that hasnow been elected in the Circle Association and wasconfident that they would take the trade unionmovement to further heights in the days to come.

10.Shri.Rabi Shankar Srivatsava, Professor fromJawaharlal University, who was the chief guest onthe occasion expressed his happiness over theconduct of the General Body meeting in a grandway and conveyed his gratitude for the invitation aswell as the hospitality shown to him by our colleaguesfrom NE circle on the occasion. He deliberated atlength the process of the evolution of the collectivebargaining of the workers and the challenges thatare ahead of the trade union movement. Heexplained at length the impact of the globalizationprocess on the working class which is detrimental tothe interest of the working class. The control of thewealth of the country by few people while the millionsand millions of population lives below the povertyline is only increasing the inequality amongst thelarge population of the country. He was also criticalof the Government economic policy which is

OUR LIFE IS WHAT OUR THOUGHTS M A KE IT 7 Officers' Cause, December - 2015

influenced by the Western countries attempt to pushthrough the reforms despite the fact that the countryneeds to support the masses through the generationof employment opportunities. He also explained howthe majority of the workforce nearly 86% of them isunorganized while only 14% are under organizedsector thus a large number of workers in the countrydo not have the benefit of the protection of the tradeunion movement.

11. Com.D.T.Franco Rajendradev, the President ofthe Federation speaking on the occasion felt thatthere is a need to understand the developmentsaround us and also the impact of the variousinitiatives of the Government. He was of the viewthat the backwardness of the NE is still persistingand there is no visible improvement in their livingconditions. He referred to the problems of the 7States who are surrounded by 5 International Bordersand are subject to a lot of hardship from time totime. He desired that the Natural Resources of NEshould be harnessed in a profitable manner andwhich can be effectively managed by the PublicSector Units.

12. Com.Sambit Mishra, the Senior Vice Presidentspeaking on the occasion recalled the imperial regimeand the struggles that enabled us to establish astrong trade union movement under the banner ofthe Federation. He also referred to the infusion of

the leaders at the very young age to the CircleAssociation to lead the organization in many circles.

13. Com.P.K.Ghosh, the General Secretary of SBISANE Circle while expressing his happiness over therelationship prevailing between the two organizationsin the circle called upon the members to be inreadiness to fight against the various initiatives ofthe Government which are anti-people and join themainstream of the struggle launched by the CentralTrade Unions to agitate against the ill advised policiesof the Government.

14. Com.Nagpal Chandra Das, the State Secretaryof AIBOC extending his fraternal greetings on theoccasion desired that the co-ordination should befurther strengthened in order to protect the interestof a common man. He congratulated the new teamof Office-bearers and wished that the co-ordinationwould be further strengthened in due course.

15. Com.David Kire, in his Presidential addressreferred to his long relationship with the Federationand his role in the Federation along with the veteransof our movement . He also summed up theproceedings of the inaugural session and expressedhis happiness over the success of the InauguralSession.

16. Com.Sanjeev Sen, proposed a vote of thanks toall the participants in the General Body Meeting.

NO POINT M ERGING BA NKS JUSTFOR THE SA KE OF IT WHEN A WEA K BA NK IS

M ERGED WITH A STRONGER ONE, THE RESULT WILL NOTDIFFERENT IF REDUNDA NCIES A RE NOT A DDRESSED.

he merger of public sector banks seems tobe back in fashion after a hiatus. The

ostensible reason for the resurrection of this issueis that some of them are under pressure on bothcapital and quality of assets, which appear toprovide reason for this discussion. To begin with,two sets of issues relating to bank mergers needto be looked at, which may be called the‘anecdotal box’ and the ‘strategic box’.

In the past, a merger has involved a combinationof four reasons based on anecdotal of fourreasons based on anecdotal experiences. The firstwhen a bank is weak or close to failure and anotheris asked to buy it. The second is in case thepromoter loses interest or has come in to create

value and then digest the same through sale.There have been such instances with some newprivate banks. Third, as has been for twoinstitutions, the development financial institutionmodel became non-viable and necessitated amerger with other banks. Last, banks are acquiredfor strategic reasons and become an integral partof the growth process of the acquiring bank. Thismerits some discussion.

The strategic box involves reasons that can befivefold. The first is where a bank wants to scaleup the balance sheet and get in a stronger modefor expansion. With a higher net worth, largerexposures can be taken which become restrictivetoday. Second, one bank may like to acquire an

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Article

LET US BUILD A STRONG A ND SELF RELIA NT INDIA

Officers' Cause, December - 2015 9

other to get hold of a particular business, whichcould be home loans, retail or SME. Third –related to the second –banks may like to get intogeographies where they are not strong throughan acquisition. Here, old private banks with theirniche models become targets. Fourth, there couldbe a case when a bank would like to merge withanother to get a better brand, enhancingshareholder value. Fifth, there would beeconomies to be had by having a grasp overinfrastructure of the other bank, which helps infuture growth.

Now when we speak of public sector banksmerging, how would they fit into these two boxes?As all of them are owned by the government andbroadly to the same kind of business, past storiesof mergers do not fit into their intrinsic nature.Anecdotally, weak banks have been capitalizedby the government and never had the need tomerge with others, though there have been suchinstances more than two decades ago. This leadsto the strategic purpose.

Strategically speaking, as all banks have astandard pattern of being strong in their ownregion and well-placed in other territories, therecould be a case for mergers. Their business linesare almost similar, though there could be somebias towards sectors such as agriculture.However, at the end of the day, the lendingpatterns look similar with wholesale focus, unlikesome private banks which have a retailpredilection on the lending side.

More importantly, as most bank lending involvinglarge amounts does include a consortium primafacie, there may be little to be gained by havinga larger bans for taking larger exposures.Therefore, while a merger for the sake of a mergercould still be justified, the final result may not bea different merged body, unless one of them isan extremely weak entity. The experience for thecustomer both as a deposit holder and borroweris unlikely to be different. Besides, with RBI tryingto distance banks from lending large amountsto single companies or groups, this wouldbecome antithetical.

Even so, what would be the main challenges ofsuch mergers assuming that it has to be done?

On the positive side, there will not be cultural issuesas this is similar across all banks. This alsoincludes the physical set –ups and pay structures.However, given the public sector fabric which is notgoing to be dislodged, the logistics would be thehurdle considering that one of the main benefits ofsuch mergers is on the operational costs side.

There are some extremely prickly issues involved,too. Are we prepared to reduce the work force ofthe new bank as there will be redundancy? Are wewilling to close down branches and ATMs whichcoexist the same locality? And are we willing toreduce the hierarchies because there can be onlyone set of chairmen, managing directors, executivedirectors and other senior management?.

Further, are we willing to merge departments whichbecome redundant now? For example, two treasurydepartments are not required, as are riskmanagement departments which are scalable anddo not require more staff when volumes increase.Similarly, front office and back office staff are notrequired in multiples when a merger takes place.

In case of a private sector merger, the acquiringbank is ruthless and just drops the staff especiallyat the senior level, without even a golden handshake. Such practices are in a way unfair, butcannot be questioned, as it is the private sectorwhere the management is answerable only to theshareholders who are simply looking at valuation.But once we come into the realm of public sector,such actions are not possible, with a strongcountervailing force of unions which ensure thatarbitrary actions are not taken when it comes toemployment.

In fact, often it has been argued that there is suchredundancy even in government departments whereseveral ministers can be merged for operationalefficiency. If decentralizations is the mantra therewhich makes the concept of having separate,ministries for steel textile, SME, food processing andindustry, then why not the same in the case of publicsector banks?

The conclusion that may be drawn is that, practicallyspeaking, merger of public sector banks may notreally add value given the structure of the systemwhere the owner is the same. Now when a weak

DUTY FIRST, RIGHT NEX T

9 Officers' Cause, December - 2015

bank is merged with a stronger one, the resultwill not be different if redundancies are notaddressed. It would be analogous to thegovernment providing funding through the backdoor. The solution would be to provide incentivesto bank to perform, which should be across all

levels so that there is new enthusiasm in banks. Aprofit share based on control of NPAs or increasein fee income or operational efficiency could be away out where employees are enthused to worksmarter.

Source: Financial Express: 16.10.2015

JUDGMENT

NAVIN SINHA, A.C.J.-We have heard Counsel forappellant and the respondents.

The present appeal arises f rom order dated26.3.2014 dismissing Writ Petition (S) No. 1486 of2014 to avail the alternate remedy under theIndustrial Disputes, Act.

2. The appellant is aggrieved by the appellate orderdated 8.6.2013 maintaining the aspect ofpunishment pursuant to a departmental proceedingbut reducing it from the earlier punishment of beingbrought down to a lower stage in the scale of payupto a maximum of two stages into being broughtdown to a lower stage in the scale of pay upto onestage.

3. Learned Counsel for the appellant submits thatthe departmental proceedings were fundamentally

flawed as the charge-sheet itself was defective. Whilethe charge-sheet mentioned one account number withregard to the alleged withdrawal, the evidence by wayof withdrawal form was furnished by the PresentingOfficer with regard to another account number. Thecharge-sheet was never amended. The Appellantdenied conceding any charges. Under clause 12 ofthe Award Staf f : Provisions For Discipl inaryProceedings Settlement dated 10th April, 2002, signedbetween the Management of 52 “A” Class Banksrepresented by the Indian Bank’s Association and theirWorkmen represented by All India Bank Employees’Associat ion, Nat ional Confederat ion of BankEmployees’ Indian. Nat ional Bank Employees’Federation, signed under section 2(p) and section18(1) of the Industrial Disputes Act, 1947 read withRule 58 of the Industrial Disputes (Central) Rules,1957, the appellant was required to be given a secondshow-cause notice along with hearing regarding thenature of punishment proposed if the charge wasestablished against him. The appellant specifically

[2015 (147) FLR 67](CHHATTISGARH HIGH COURT)

NAVIN SINHA , A .C.J. and CHA NDRA BHUSHA N BA JPA I, J.W.A . No. 217 of 2014Decem ber 16, 2014

Bet w eenKAUSHA L PRA SA D BARM A N

A ndSTATE BA NK OF INDIA and ot hers

Industrial Disputes Act, 1947— Sections 2 (p) and 18 (1)— Industrial Disputes (Central) Rules, 1957— Rule58— Constitution of India, 1950— Article 226— Departmental proceedings— Charge-sheet was defectivementioning wrong account number— Withdrawal form produced was with regard to an account numberother than that forming part of charge-sheet— Held, charge-sheet mentioned two account numbers andthat latter may have been corrected— Cannot be invoked by respondents to justify their own mistake—Appellant was denied an opportunity to convince Disciplinary Authority not to impose punishment— AppellateAuthority himself opined that it was mistake on part of appellant and not a case of gross negligence—Availability of alternative remedy has never been considered as a complete bar to maintainabilities of writpetition— Order of punishment as also that of Appellate Authority not sustainable on ground gross irregularityin conduct of departmental proceedings— Punishment order set aside— Appeal allowed.

Judicial Verdict

NEVER BEND BEFORE THE INSOLENT M IGHT

Officers' Cause, December -2015 10

took objection in his memorandum of appeal againstdenial of this opportunity. Despite noticing the same,the Appellate Authority did not deal with it . Thepunishment is therefore vitiated on this ground also.

4. It was next submitted that the Appellate Authorityarrived at a conclusion that appellant had committedmistake and not that his conduct with regard to thealleged withdrawal was motivated by any ill intention.The Appellate Authorit y was of the view thatmagnanimity was called for. In other words, no mensrea was attributed to the appellant. It was a meremistake not even falling in the category of negligentbehaviour much less to warrant disciplinary actionand imposition of punishment. The learned SingleJudge was not justified in dismissing the writ petitionwithout examining the merits of the case/merely onthe ground of alternative remedy.

5. Learned Counsel f or t he respondent -Banksubmitted that the mistake committed in the charge-sheet with regard to the account number has causedno prejudice to the appellant as he did not disputethe correctness of the withdrawal form signed by anunauthorised person and the accessibility of othersto his password leading to the permission forwithdrawal. It was also contended that he accountnumber was wrongly mentioned in the first paragraphof the charge-sheet but it was correctly mentioned inthe third paragraph vis-a-vis the withdrawal slipproduced as evidence. It was next submitted that theappellant was allowed full part icipat ion in thedepartmental proceedings and the appel lantvoluntarily chose not to lead any evidence in supportof his defence.

6. The punishment has been imposed under clause5(j) of the Settlement dated l0.4.2002 with regard toacts prejudicial to the interest of the Bank or grossnegligence or negligence involving or likely to involvethe Bank in serious loss. The Appellate Authority hasalso applied its mind to the memorandum of appeal.Fairness in procedure on the part of the Bank isapparent from the act of the Appellate Authority inreducing the punishment. The learned Single Judgecommitted no error by relegating the appellant tothe remedy under the Industrial Disputes Act.

7. The availability of alternative remedy has neverbeen considered as a complete bar t o t hemaintainability of a writ petition. It is a self-imposedrestriction by the writ Court. The power is thereforeexercised in a manner dependent and befitting tothe facts of a case. No rigid yardstick or formula ispossible in this regard and the exercise of discretionwill vary from one case to another depending onthe facts. If the facts are glaring, require no furtherinvestigation, injustice is apparent and the law onthe issues involved stands well settled, the writ Courtwould refrain from disposing the matter on meretechnicalities multiplying litigation. The duty of theCourt is to dispense justice in accordance with lawby giving finality to litigation and bringing them to aclose at the earliest possible.

8. It is not in dispute that the charge-sheet wasdefective mentioning the wrong account number. Itnever came to be amended. The withdrawal formproduced was with regard to an account numberother than that forming part of he charge-sheet. Ifthe petitioner acknowledged the withdrawal formproduced before him as genuine, it does notaut omat ical ly mean without any expressacknowledgment and concession by him that itrelated to the same account number which shouldhave been but was not part of the charge-sheet.On the contrary, the appellant took a specif icobjection in this regard. The mere fact that heacknowledged that the withdrawal form was agenuine document does not automatically mean aconcession by him that it related to the accountnumber erroneously not mentioned in the charge-sheet. The fact that the charge-sheet mentionedtwo account numbers and that the latter may havebeen corrected cannot be invoked by t herespondents to justify their own mistake by an ‘ifand but’ theory. A charge-sheet is a serious matterand is required to be framed with care and caution.

9. It was for the Bank to answer how the charge-sheet came to be framed in such a casual andcavalier manner in a departmental proceedings. Itis not the case of the Bank that it has takendepartmental act ion against those who werenegligent in drafting such a faulty charge-sheet or

TIM E A ND TIDE WA IT FOR NONE

11 Officers' Cause, December - 2015

did not consider to amend the charge sheet toprotect the interest of the Bank.

10. The memorandum of settlement binds the Bankand the employee both. The Bank cannot ignorethe settlement at will or comply with it at discretion.The Bank had no option in the matter except tofollow the procedures. It is not the case of the Bankin the original order of punishment dated 8.3.2014that the Appellant was given a second show causenot ice for t he proposed punishment underClause 12. Addit ionally, the appellant took thisground specifically in his appeal. The AppellateAuthority after noticing it did not give any findingwith regard to the same. That alone is sufficient tovit iate the order. The fact that the AppellateAuthority may have reduced the punishment is notconsidered relevant at this stage. The appellant wasfirst of all denied an opportunity to convince theDisciplinary Authority not to impose a punishment.The Appellate Authority ought to have remedied thiswrong by either reminding it to the DisciplinaryAuthority or by granting a personal hearing itselfwhen the appellant may have had the opportunityto persuade them that it was not a case forpunishment. The fact that the Appellate Authoritymay still have not been persuaded is not relevant atthis stage. What is relevant is denial of t heopportunity.

11. Clause 5(j) provides for gross negligence ornegligence involving or likely to involve the Bank inserious loss. The use of the word “gross negligence”followed by the word “negligence” does not takeaway the level of negligence visualized in the caseas it bias to be read with the word “serious loss”.The appellate Authority himself opined that it was amistake on the part of the appellant and not a caseof gross negligence, much less negligence. It is aptlysaid to err is human. The Appellate Authority whileopining that a sympathetic view was required to betaken, apparently was of the view that it was ahuman error or mistake commit ted by t heappellant.. It is not every mistake which amounts tonegl igence, much less gross negligence. Fornegligence, to constitute misconduct, entailingpunishment something more than mere mistake isrequired. It would be a case where the mistake was

commi t ted not only voluntari ly but with ful lconsciousness. In such a situation, it tantamountsto rashness in conduct beyond prudent humanbehaviour where the person may be held liable dueto his own conduct. Alternately, if a person aware ofthe error knowingly persists in acting unmindful ofthe consequences, issues would again be entirelydifferent from the case a mere human error.

12. In A.P.S.R.T.C. v. P. Appa Rao, it was observed asunder:

“3. ..The employee cannot be punished for asheer mistake, which is found to have beencommitted bona fide. Admittedly the allegedmistake of the respondent has not resulted inany loss to the Corporation. If the respondentcould not be held guilty of the charge framedagainst him and not even guilty of havingcommit ted a culpable mistake, t hen anydisciplinary action against him was uncalled for.At the most, a warning could have been issuedto the respondent to be careful for the future.Once it is held that the respondent was not guiltyof any misconduct or of negl igence inperformance of his duties, the departmentalinquiry held against him was uncalled for andthe punishment of removal could not have beenimposed on him. As the finding of guilt itself hasbeen set aside, t he quest ion of denyingbackwages does not arise.”

13. Misconduct would not include human errors wasconsidered in Inspector Prem Chand v. Governmentof NCT of Delhi observing as follows:

“10. In State of Punjab v. Ram SinghEx-Constable it was stated:

“5. Misconduct has been defined in Black’s LawDictionary, 6th Edn. At p. 999, thus:

“A t ransgression of some established anddefinite rule of act ion, a forbidden act, adereliction from duty, unlawful behaviour, willfulin character, improper or wrong behaviour,delinquency, impropriety, mismanagement ,offense, but not negligence or carelessness".

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RNI.No.36617 / 81 OFFICERS' CAUSE TOTAL NO. OF PAGES 12 DECEMBER - 2015REGN.NUMBER.KRNA/BGE/202/2015-2017.REGD. NUMBER.527/MDS-POSTED ON15TH OF EVERY MONTH AT BANGALORE PSO,MYSORE ROAD, BANGALORE 560 026LICENSED TO POST WITHOUT PREPAYMENT. LICENCE NUMBER. WPP/82

“Misconduct means, misconduct arising from illmotive; acts of negligence, errors of judgment, orinnocent mistake, do not const i t ut e suchmisconduct".

12. An error of judgment , asnoticed hereinbefore, per se isnot a misconduct. A negligencesimpliciter also would not be amisconduct.”

14. In conclusion, we are satisfiedthat the order of punishment asalso that of t he Appel lateAuthority is not sustainable onthe grounds of gross irregularlyin t he conduct of t hedepartmental proceedings,non-compliance with the provisions ofSettlement before imposition ofpunishment and from the recitalof the appellate order itself thatit was a mistake committed not coming within clause

5 (j) of the memorandum of settlement.

15. The order under appeal is set aside. The orderof punishment passed by the Appellate Authority is

also set aside.

16. The appellant is statedto have superannuated on30.12.2013. He is entitledto al l consequent ialbenefits.

17. The appeal is allowed.

Appeal Allowed.

"Officers’ Cause" wishes all their comrades &their families a very happy,

healthy and prosperous New Year 2016.