Case Note & Summary
The dispute arose from the employment of the appellant with UCO Bank, where he was promoted to Assistant Manager in 1997 but later requested to revert to his previous position as Clerk in 1999. The Bank accepted his request but imposed conditions that included permanent forfeiture of promotion opportunities and ineligibility for stagnation increments. The appellant challenged these conditions in a writ petition, which was initially dismissed but later allowed by a Division Bench of the High Court, only to be set aside upon review by the same court. The appellant contended that the conditions were unconstitutional and that his request to withdraw the reversion should have been honored. The Bank defended its position based on bipartite agreements with employee unions. The Supreme Court analyzed the relevant agreements and determined that while the denial of stagnation increments was lawful, the permanent forfeiture of promotion was not. The court clarified that the appellant's reversion request was made during probation, thus limiting the forfeiture of promotion to two years from the date of reversion. The appeal was partially allowed, correcting the terms of forfeiture imposed by the Bank.
Headnote
A) Employment Law - Reversion and Promotion Forfeiture - Conditions of Reversion - Industrial Disputes Act, 1947, Section 2(p), Section 18(1) - The court held that the appellant's reversion conditions were lawful except for the permanent forfeiture of promotion, which should only last for two years post-reversion. The court clarified that the appellant's request for reversion was made during probation, thus limiting the forfeiture period (Paras 7-14).
Issue of Consideration
Whether the conditions imposed on the appellant's reversion to the clerical cadre were lawful, particularly regarding forfeiture of promotion and stagnation increments.
Final Decision
The Supreme Court partially allowed the appeal, setting aside the permanent forfeiture of promotion and limiting it to two years from the date of reversion.
Law Points
- Employment law
- probation
- reversion
- promotion forfeiture
- bipartite agreements
