Case Note & Summary
The dispute arose between the State Bank of India and its employees represented by the State Bank of India Staff Union regarding two Circulars issued by the bank on 28.1.1987 and 7.3.1987, which restricted employees from contesting elections to public bodies without prior permission. The appellants challenged a decision of the Andhra Pradesh High Court that set aside these Circulars, claiming they violated Section 9-A of the Industrial Disputes Act, 1947. The Circulars required employees to obtain permission and provide an undertaking that their election would not interfere with their bank duties. The respondents argued that these Circulars changed the conditions of service, which required notice under Section 9-A. The court analyzed whether the Circulars constituted a change in service conditions as defined in the Fourth Schedule of the Act. It concluded that participation in elections was not a customary privilege related to service conditions, and the existing rules already prohibited such participation without sanction. The court noted the need for the bank to maintain operational integrity and prevent political influence on its employees. The appeal was allowed, and the High Court's judgment was set aside, with no order as to costs.
Headnote
A) Labour Law - Change in Conditions of Service - Circulars do not violate Section 9-A - Industrial Disputes Act, 1947, Section 9-A - The court held that the Circulars regarding employee participation in elections did not constitute a change in conditions of service as defined under Section 9-A, since participating in elections is not a customary privilege related to service conditions. The court emphasized that the existing rules already prohibited such participation without prior sanction, thus the Circulars were valid and did not require notice under Section 9-A (Paras 1-3).
Issue of Consideration
Whether the Circulars issued by the State Bank of India violated Section 9-A of the Industrial Disputes Act, 1947.
Final Decision
The Supreme Court allowed the appeal, set aside the Andhra Pradesh High Court's judgment, and upheld the validity of the Circulars issued by the State Bank of India.
Law Points
- Industrial Disputes Act
- 1947
- Section 9-A
- Conditions of Service
- Circular Validity
- Employee Conduct Regulations
