Personal Manager,Sbi &Anr vs Krishna Grameena Bank Employees Union & ...

2. Background facts in a nutshell are as follows:

3. On 1.9.1987 employees of Regional Rural Banks (in short the 'RRBs.') filed Writ Petition Nos. 7149-50 of 1982 and Writ Petition No. 132 of 1984 under Article 32 of the Constitution of India, 1950 (in short the 'Constitution') challenging salary structure in these Banks. This court directed the issues to be referred to a National Industrial Tribunal (in short the 'National Tribunal'). On 26.11.1987 the National Tribunal was constituted by the Government of India to consider the disputes relating to pay, salary and allowances payable to the employees of RRBs. On 10.4.1989 "Industry Level Fifth Bipartite Settlement" was signed between 54 Banks and their associations, wherein inter alia agreed that special allowances for clerical staff would be payable to the employees of 54 (sponsor) Banks, and "Cashier in charge of cash" would be entitled to special allowance of Rs.189 per month. On 9.6.1989 an agreement was entered into between the State Bank of India and its federation, called the "Fifth Bipartite Settlement"

holding keys will be entitled to allowance of Rs.189/- per month and not Rs.380/- per month. The appellant No. 2 RRB also issued similar circular clarifying that Joint Custodian allowance shall be paid at the rate of Rs.189/- (as per Industry Level Settlement) instead of Rs.380/- per month. The respondent- Union filed writ petition before the High Court. That writ petition No. 23469 of 1991 was filed praying for quashing circular dated 21.10.991 issued by the appellant No. 2 on the ground that Fifth Bipartite Settlement entered between SBI and Staff Federation provided that said allowance was to be paid at the rate of Rs.380/- per month as cash allowance and joint custodian allowance is payable to the employees of sponsor bank and there should be parity of allowance of the employees of RRB as per the National Tribunal Award. By judgment dated 27.1.1992 the Patna High Court which was dealing with similar issues granted liberty to Government and RRB to reduce the said allowance. On 21.4.1992 NABARD issued a Circular to all sponsor banks including SBI stating that of RRBs' special allowance of only Rs.189/- shall be payable. This order of NABARD was issued with the prior approval of the Government of India. The writ petition filed by respondent was allowed by a learned Single Judge of the Karnataka High Court. Challenge was raised by the employees of another RRB i.e. Nagarjuna Gramin Bank which was also sponsored by SBI before Andhra Pradesh High Court. A Division Bench of the Andhra Pradesh High Court held that employees are entitled to allowance at the rate of Rs.189/- and not at the rate of Rs.380/- per month. The order of learned Single Judge of the Karnataka High Court was challenged before the Division Bench in Writ Appeal which as noted above was dismissed.

This Award is accordingly passed and it shall cover all existing RRBs. The Award shall be given effect to from 01st day of September, 1987.

In view of the aforesaid conclusions of the tribunal on the basis of evidence placed before it, the conclusion is irresistible that the tribunal never applied the principle of 'equal pay for equal work' and on the other hand was of the view that the employees of the Regional Rural Banks will be entitled to claim parity with the officers and other employees of the sponsor banks in the matter of pay scales, allowances and other benefits and for determining the parity, it left the matter to be decided by the Central Government in consultation with such authorities as it may consider necessary. We are, therefore, persuaded to accept the submissions of Mr. Ramachandran, appearing for the appellant that while resolving the dispute of the employees of the Regional Rural Banks, the tribunal did no apply the so-called principle of 'equal pay for equal work' and on the other hand applied the principle of parity with the officers of the respective sponsor banks."

13. Appeal is allowed with no order as to costs.