Case Note & Summary
The Petitioner, Bank of Maharashtra Officers' Association, a trade union representing officers cadre employees of Bank of Maharashtra, filed a writ petition challenging the Scheme promulgated by the Government of India vide Notification dated 17.10.2000 regarding verification of membership of officers for appointment of a non-workman employee director on the Board of Directors of the bank. The Petitioner sought a declaration that the Scheme is ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980, and consequently null and void. The court considered the submissions of the parties and examined the relevant provisions of the Act and the Schemes. The court held that the Scheme is valid and not ultra vires the parent Act or the Schemes. The petition was dismissed.
Headnote
A) Banking Law - Verification of Membership - Officer Director - The Scheme dated 17.10.2000 for verification of membership of officers for appointment of non-workman employee director is held intra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980. The court held that the Scheme is valid and not ultra vires the parent Act or the Schemes. (Paras 1-10)
Issue of Consideration
Whether the Scheme promulgated by the Government of India vide Notification dated 17.10.2000 in respect of verification of membership of officers for appointment of non-workman employee director is ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980.
Final Decision
The court held that the Scheme is valid and not ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980. The writ petition was dismissed.
Law Points
- Verification of membership
- Trade union recognition
- Officer director
- Nationalised banks
- Ultra vires
- Scheme validity
Case Details
2010 LawText (BOM) (08) 46
Writ Petition No.5394 of 2001
Mr. J P Cama, Senior Counsel, a/w Smt. Neha Mehta i/by Mr. K P Anilkumar for the Petitioner. Mr. Y S Bhate with Mr. D A Dubey with Mr. N R Prajapati i/by Mr. Pankaj Kapoor for the Respondent No.1-UOI. None for Respondent No.2. Mr. Girish Kulkarni i/by M G Kulkarni for Respondent Nos. 3 and 4. None for Respondent No.5. Mr. Jaydeep Mitra i/by Mr. G S Godbole for Respondent No.6.
Bank of Maharashtra Officers' Association
Union of India, Reserve Bank of India, Bank of Maharashtra, Shri M P Kale, Bank of Maharashtra Officers' Organization, Shri Padmakar N Deshpande
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Nature of Litigation
Writ petition challenging the validity of a government scheme for verification of membership of officers for appointment of non-workman employee director.
Remedy Sought
Declaration that the Scheme dated 17.10.2000 is ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980, and a writ of mandamus directing the respondents to act in accordance with law.
Filing Reason
The Petitioner, a trade union, challenged the Scheme as being ultra vires the parent Act and the Schemes.
Issues
Whether the Scheme dated 17.10.2000 is ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980.
Submissions/Arguments
The Petitioner argued that the Scheme is ultra vires the parent Act and the Schemes.
The Respondents argued that the Scheme is valid and intra vires.
Ratio Decidendi
The Scheme for verification of membership of officers for appointment of non-workman employee director is intra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Nationalised Banks (Management and Miscellaneous) Scheme, 1970 and 1980.
Judgment Excerpts
The issue involved in the instant Petition is as regards the nomination of a Officer Director on the Board of Directors of the Respondent No.3-Bank.
Procedural History
The writ petition was filed in 2001. Judgment was reserved on 2nd July 2010 and delivered on 10th August 2010.
Acts & Sections
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970:
- Nationalised Banks (Management and Miscellaneous) Scheme, 1970:
- Nationalised Banks (Management and Miscellaneous) Scheme, 1980:
