Case: Punjab National Bank Ltd Vs. Their Workmen

agreed to give up their claims under the award. In this process prejudice must have been caused to a large number of employees who stood by the award and did not accept the tempting offer of promotion for a price, the price being in their opinion too heavy to be paid. To illustrate the nature of prejudice which must have been caused to a large number of employees some oral evidence was led on behalf of the respondents. Kashyap, Goyal, Gupta and others have given evidence on oath that they were not promoted and their juniors were promoted, solely for the reason that they stood by the award whereas their juniors submitted to the condition imposed by the appellant. This oral evidence shows that officers in charge of branches expressly told the employees that the appellant had decided to promote only those who would take the bank scales and give up the benefits under the award. He evidence has not been challenged by any statement on oath on behalf of the appellant, and it has been believed by the tribunal. Therefore the conclusion of the tribunal that prejudice was caused to a large number of employees by the impugned circulars of 18 April, 1957 and 13 December, 1957 cannot be successfully challenged.There is one more point which must be considered in this connexion. Mr. Veda Vyas argues that whatever may be said against circular No. 292 there is no reason why the earlier circular No. 249 should be brought into the controversy. He has urged a similar argument in regard to the earliest circular No. 201 issued on 8 August, 1956.11. In regard to circular No. 249 it is impossible to accept the argument that it is either innocent or is not connected with the scheme evolved by the appellant for the purpose of depriving the respondents of their legitimate rights under the award. We have already observed that by itself the circular reads like an innocent circular, but the two confidential letters issued along with it clearly bring out the object underlying the said circular. In fact what was contained in the confidential accompaniments of the said circular ultimately became a part of the subsequent circular. Therefore it is not possible to dissociate the said circular from the main impugned circular No. 249.12. Three circulars, Nos. 249, 292 and 336, form part of the same scheme and transaction, and they are held together by the invisible thread of the two confidential letters. Therefore, in our opinion, the tribunal was right in holding that the last circular did not mitigate the impropriety or remove the illegality of the two earlier circulars and that the said two circulars contravened the respondents right under the award.The position in regard to circular No. 201 issued on 5 August 1956 is, however, different. It is no doubt possible to contend that this circular was the beginning of the scheme; but, on the other hand, prior to the issue of this circular promotion rested entirely in the discretion of the management, and if by this circular the management revised its earlier rules and made elaborate provisions for the allotment of marks, it would be difficult to hold that this circular by itself contravened any of the rights vesting in the respondents by virtue of the award, or that it was really a part of the same transaction evidenced by subsequent circulars. At the hearing before us a statement has been filed on behalf of the appellant which shows the promotions that have taken place during the relevant period. Sixty-eight promotions were made to the cadre of supervisors between 8 August, 1956 and 18 April, 1957. It is admitted that though the circular of 18 April, 1957 had affirmed that all confirmed supervisors would be placed in officer grade II, in actual fact only 451 out of 542 affirmed supervisors were originally placed in the said cadre, obviously because the remaining supervisors did not accept the appellants scale and conditions. Therefore up to 13 December, 1957 promotions to grade II numbered 128, and promotions to supervisors cadre numbered 7. Similarly, from 13 December, 1957 to 4 October, 1958 the two respective promotions are 210 and 5. It has been fairly conceded before us by the learned Attorney-General on behalf of the respondents that he cannot seriously question the propriety of the 68 promotions to the grade of supervisors that took place between 8 August, 1956 and 18 April, 1957. In regard to the remaining categories of promotions they are clearly open to challenge, because, while these promotions were made, obviously cases of other persons who were eligible at that time were not considered because they did not agree to take the bank rates and scales. We would, therefore, confirm the finding of the tribunal that circular No. 249 read with the two confidential letters and circular No. 292 have contravened the rights of the respondents under the award, and as such are invalid. We would also confirm the finding of the tribunal and its conclusion that the promotions made from 18 April, 1957, by virtue of the said circulars, and bad and must be set aside. There are, however, two directions issued by the award of the tribunal which must be reversed; and they are in regard to circular No. 201 issued on 8 August, 1956 and the direction issued by the tribunal to the appellant to promote such of the respondents as are eligible to the cadre of officer grade II. It is conceded that the said cadre is not a matter of right conferred on the respondents by the award, and all that the respondents can claim is to have their wages structure, allowances and promotions in the ordinary way as prescribed by the award. If, however, the appellant wants to continue the said cadre, it must take care to see the promotion to the said cadre does not depend on any conditions prejudicial to or inconsistent with the employees rights under the award.13.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]The first question which has been urged before us by Mr. Veda Vyas on behalf of the appellant is that the reference itself is invalid. His argument is that, as the words used in the reference stand, they indicate that it is only persons who have been promoted subject to the impugned condition whose cases are referred to adjudication; and he points out that none of such persons has raised any dispute, and therefore no industrial dispute could have been referred for adjudication at all.This argument proceeds on the assumption that the first part of the reference refers to persons appointed subject to the impugned condition; but, in our opinion, this assumption is clearly not justified. The question referred has no reference to the persons appointed subject to the impugned conditions, but it refers to the question as to whether the impugned condition itself is valid or not; in other words, thereference can be paraphrased thus : Is the condition that the person appointed to officer grade II by promotion would be governed by the rules of the bank valid and justified? This is the only way in which the reference can be read; that being so, we do not think that there is any substance in the challenge to the validity of thefacie this point appears to be attractive; but when we scrutinize the two confidential letters carefully, it becomes plain that the whole object of the enquiry instituted by the said letters was to obtain an admission from the employees about their status before the promised promotion came their way; in other words, if the employees answered the query as the appellant expected them to do and said they were officers having regard to the nature of their duties, then the said admission would itself put the said employees outside the protection of the award, and in that sense they would not be entitled to make any claim for the arrears of any special allowance. That at any rate must have been the object with which the confidential letter was issued. In this connexion it would be material to recall that the Dayal award was pronounced on 4 April, 1957, and circular No. 249, innocent in appearance, was issued on 18 April, 1957 coupled with the two confidential letters. We are satisfied that the tribunal was right in taking the view that the object of issuing the circulars and two letters was to persuade or tempt the employees to make an admission that they were not workmen under the Act, and thus disqualify them from making any claim for special allowance guaranteed to them under the award. If that be the true position, then the argument that the circular was intended to benefit the employees and put them on a par with new recruits cannot claim even prima facie the merit of plausibility. The next contention raised is that whatever may be the infirmity in the circulars, Nos. 249 and 292, that has now become a matter of history because of a fresh circular No. 336 issued on 26 May, 1958. This circular called upon the employees who were unwilling to forgo the award to apply for promotion, and it solemnly promised them that in case they were selected they would be given an option either to remain under the award or to choose the banks scale. Indeed Mr. Veda Vyas suggested that in view of the last circular no industrial dispute could be said to subsist between the parties at the date of the reference. In our opinion, this contention is notIt is obvious that this last circular was issued because it was apprehended by the appellant that the protests made by the employees were likely to succeed and that an industrial dispute was likely to be raised. It is with a view to prepare its defense for meeting the employees case before the tribunal that this circular was issued by the appellant; and so, if any prejudice has been caused to the respondents by the earlier circulars, it cannot be said that they have been rectified or cured merely by the issue of this latter circular.Besides, there can be no doubt that after the original circular was issued on 18 April, 1957 many promotions have been made and they have been made in most cases only in regard to persons who agreed to give up their claims under the award. In this process prejudice must have been caused to a large number of employees who stood by the award and did not accept the tempting offer of promotion for a price, the price being in their opinion too heavy to be paid. To illustrate the nature of prejudice which must have been caused to a large number of employees some oral evidence was led on behalf of the respondents. Kashyap, Goyal, Gupta and others have given evidence on oath that they were not promoted and their juniors were promoted, solely for the reason that they stood by the award whereas their juniors submitted to the condition imposed by the appellant. This oral evidence shows that officers in charge of branches expressly told the employees that the appellant had decided to promote only those who would take the bank scales and give up the benefits under the award. He evidence has not been challenged by any statement on oath on behalf of the appellant, and it has been believed by the tribunal. Therefore the conclusion of the tribunal that prejudice was caused to a large number of employees by the impugned circulars of 18 April, 1957 and 13 December, 1957 cannot be successfully challenged.Veda Vyas argues that whatever may be said against circular No. 292 there is no reason why the earlier circular No. 249 should be brought into the controversy. He has urged a similar argument in regard to the earliest circular No. 201 issued on 8 August,In regard to circular No. 249 it is impossible to accept the argument that it is either innocent or is not connected with the scheme evolved by the appellant for the purpose of depriving the respondents of their legitimate rights under the award. We have already observed that by itself the circular reads like an innocent circular, but the two confidential letters issued along with it clearly bring out the object underlying the said circular. In fact what was contained in the confidential accompaniments of the said circular ultimately became a part of the subsequent circular. Therefore it is not possible to dissociate the said circular from the main impugned circular No.Three circulars, Nos. 249, 292 and 336, form part of the same scheme and transaction, and they are held together by the invisible thread of the two confidential letters. Therefore, in our opinion, the tribunal was right in holding that the last circular did not mitigate the impropriety or remove the illegality of the two earlier circulars and that the said two circulars contravened the respondents right under the award.The position in regard to circular No. 201 issued on 5 August 1956 is, however, different. It is no doubt possible to contend that this circular was the beginning of the scheme; but, on the other hand, prior to the issue of this circular promotion rested entirely in the discretion of the management, and if by this circular the management revised its earlier rules and made elaborate provisions for the allotment of marks, it would be difficult to hold that this circular by itself contravened any of the rights vesting in the respondents by virtue of the award, or that it was really a part of the same transaction evidenced by subsequent circulars. At the hearing before us a statement has been filed on behalf of the appellant which shows the promotions that have taken place during the relevant period.promotions were made to the cadre of supervisors between 8 August, 1956 and 18 April, 1957. It is admitted that though the circular of 18 April, 1957 had affirmed that all confirmed supervisors would be placed in officer grade II, in actual fact only 451 out of 542 affirmed supervisors were originally placed in the said cadre, obviously because the remaining supervisors did not accept the appellants scale and conditions. Therefore up to 13 December, 1957 promotions to grade II numbered 128, and promotions to supervisors cadre numbered 7. Similarly, from 13 December, 1957 to 4 October, 1958 the two respective promotions are 210 and 5. It has been fairly conceded before us by the learnedon behalf of the respondents that he cannot seriously question the propriety of the 68 promotions to the grade of supervisors that took place between 8 August, 1956 and 18 April, 1957. In regard to the remaining categories of promotions they are clearly open to challenge, because, while these promotions were made, obviously cases of other persons who were eligible at that time were not considered because they did not agree to take the bank rates and scales. We would, therefore, confirm the finding of the tribunal that circular No. 249 read with the two confidential letters and circular No. 292 have contravened the rights of the respondents under the award, and as such are invalid. We would also confirm the finding of the tribunal and its conclusion that the promotions made from 18 April, 1957, by virtue of the said circulars, and bad and must be set aside. There are, however, two directions issued by the award of the tribunal which must be reversed; and they are in regard to circular No. 201 issued on 8 August, 1956 and the direction issued by the tribunal to the appellant to promote such of the respondents as are eligible to the cadre of officer grade II. It is conceded that the said cadre is not a matter of right conferred on the respondents by the award, and all that the respondents can claim is to have their wages structure, allowances and promotions in the ordinary way as prescribed by the award. If, however, the appellant wants to continue the said cadre, it must take care to see the promotion to the said cadre does not depend on any conditions prejudicial to or inconsistent with the employees rights under the award.