Chairman & M.D.,Indian Overseas ... vs Tribhuwan Nath Srivastava

2. This Court while granting special leave to appeal, by order dated February 11, 2005, stayed the operation of the order of the High Court coming under appeal. As a result, the respondent continued in service and eventually retired on reaching the age of superannuation on June 6, 2009. He has been paid his terminal dues and is also getting regularly his monthly pension. In view of this material change in circumstances during the pendency of the appeal, we suggested that the parties should negotiate and try to come to some amicable settlement. They were, however, unable to come to terms and the respondent insisted that the appeal be heard on merits and in case it is finally dismissed, then, the Court may consider how to appropriately mould the relief in his favour. We, accordingly, proceeded to examine the respondent's claim for grant of voluntary retirement under the scheme of the bank on merits.

3. In order to examine the case of the rival sides in perspective, it would be useful to briefly state the relevant facts. The board of directors of the appellant-bank in its meeting held on November 25, 2000 approved a voluntary retirement scheme for the officers and employees of the bank, called the IOB Officers/Employees Voluntary Retirement Scheme - 2000 3 ("the scheme" for short). The object of the scheme was "to adopt measures to have optimum human resources at various levels in keeping with the business strategies, skill profile to achieve balanced age and requirement of the bank." The scheme remained in operation for 5 weeks from December 15, 2000 to January 19, 2001.

7. The respondent submitted a copy of the High Court order to the bank along with his representation dated December 7, 2002 whereupon the board of directors of the bank in its meeting held on January 11, 2003 constituted a committee consisting of the Chairman and Managing Director, the Executive Director and the General Manager (Personnel) to reconsider his request for voluntary retirement as directed by the High Court. The Committee in its meeting held on January 11, 2003 reconsidered the matter in great detail, taking into account the service record of the respondent. The Committee noted that the respondent was an agricultural engineering graduate and was appointed as a clerk in the bank on October 26, 1970. For his sincere and hard work, he was promoted as officer in Junior Management Grade Scale I on June 1, 1975, within 5 years of his appointment as clerk. His performance in the post was exemplary. The bank, therefore, decided to utilize his services abroad and posted him to the Hong Kong branch. Ordinarily, 7 overseas assignments are given to Middle Management Grade Officers in Scale II and above but in the case of the respondent, who was at that time an officer in the Junior Management Grade I, he was given the assignment in view of his dedicated work and educational background. Even while serving abroad he was promoted to Middle Management Grade Scale II on July 1, 1982. After completing foreign assignment for a term, he was posted to the Lucknow region in August, 1982 and his services were utilized at the Varanasi Cantonment and Lucknow Branches. While working at Lucknow, the respondent was able to canvass a good number of deposit accounts and provided satisfactory customer service which earned him appreciation from the Zonal Manager. In view of his rich experience in Lucknow, the bank elevated him in position and posted him as Senior Manager in the Kankhal branch, which was selected by the Bank Management as the best branch during his tenure. The Committee further noted that considering his potential and ability the bank provided him various in-house and external trainings. He was promoted to the Middle Management Grade III during 1992 and further promoted to the Senior Management Grade Scale IV in the year 1998. His services were well utilized not only to core banking but also in specialized areas like foreign exchange, overseas trading, etc. and he had a track record of unblemished service. He had scored good ratings in all 8 confidential reports. He had been given good exposure including foreign postings and had a lot of potential. Therefore, the bank did not want to lose the benefit of his services. The Committee concluded that keeping in view the past track record, the specialized skill expertise, potential, training imparted, organizational requirement and administrative exigencies, the services of the respondent were required for the development of the bank and hence, resolved not to accept the voluntary retirement application under the scheme. The decision of the Committee was communicated to the respondent who once again challenged it before the High Court in Civil Miscellaneous Writ Petition No.6162 of 2003.

10. Proceeding thus, the High Court allowed the respondent's writ petition and by judgment and order dated September 3, 2003, set aside the decision of the appellant-bank not to accept the respondent's request for voluntary retirement and observing that any further remand would not serve any useful purpose, the High Court went on to direct the bank to accept the respondent's application for grant of voluntary retirement.

(emphasis added) 17

17. Bearing in mind the object and purpose of the scheme as explained in the decision in Bank of India it is not difficult to see how the competent authority in the bank would deal with the applications for voluntary retirement made by individual officers; other things being equal between two applicants he would like to let go the one with the inferior service record and lower potential and consequently he would accept the application of the officer with the lower merit and may not accept the request of the officer with superior merit. This is for the simple reason that in the process of shedding surplus manpower no organisation would like to lose its best people.

21. We are of the view that the High Court took a highly technical view of the matter. What perhaps was meant by the bank was that the decision to accept their request for voluntary retirement was taken after the proceedings against those officers/employees were closed/dropped. Here, it may be recalled that this was quite in accordance with paragraph 10 of the "General Conditions".

23. In light of the discussion made above, we are clearly of the view, that the bank had properly appraised the respondent's claim for voluntary retirement under the scheme and its decision not to accept the request was within the legitimate exercise of discretion that did not warrant any interference by the High Court. We are, therefore, constrained to hold that the judgment of the High Court coming under appeal is quite unsustainable.

24. We, accordingly, allow the appeal, set aside the impugned judgment and order passed by the High Court and dismiss the writ petition filed by the respondent.

25. There will be no order as to costs.

26. We are told that some other case(s) between the parties are pending before the High Court on some other issues. Needless to say that that case 21 will be decided on its own merits and the decision in this appeal will not prejudice the case of the respondent.