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TMI Blog1996 (2) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... n order on offering three months' pay in lieu of the requisite notice. Instead, the respondent on even date had tendered his resignation (exhibit P-5) to Traders Bank ; the transferor-bank of the appellant had accepted the resignation on July 2, 1986. Consequently, the respondent had returned the cheque of salary offered to him in lieu of notice on the even date. Under section 45 of the Banking Companies Regulation Act, 1949 (for short, "the Act"), the scheme of amalgamation of the transferor bank with the appellant bank, with effect from November 20, 1987 (exhibit P-8), was initiated. The Central Government had accepted the amalgamation under sub-section (7) of section 45 of the Act with effect from the appointed date, viz., May 13, 1988. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders Bank, viz., the transferor bank was illegal. Relying upon the notification, the appellant raised a preliminary objection after filing written statement to the maintainability of the suit which was rejected by the trial court. In Revision No. 595 of l994 by order dated March 21, 1995, the Delhi High Court dismissed the revision summarily. Even in this appeal the only question is whether the appellant is liable to take over the services of the appellant? If that finding is recorded in favour of the respondent, necessarily the suit of the respondent would stand maintainable. Section 45 of the Act envisages the power of the Reserve Bank to apply to the Central Government for suspension of the business of a banking company and prepare a sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided in the scheme prepared under sub-section (4) and the matters specified in the several clauses in sub-section (5) do not automatically get incorporated in such scheme unless the scheme specifically includes any such matter. It means that the matter specified in clause (i) of sub-section (5) is not an invariable term to be read in such a scheme framed under sub-section (4) for amalgamation of the banking company unless it is incorporated specifically in the scheme so prepared. Thus, such a scheme may or may not contain provision for the continuance of the services of all the employees of the banking company in the transferee bank as is specified in clause (i). However, if the scheme does provide for this matter, then the continuance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sferee bank." In U. P. State Electricity Board v. Radhey Mohan Verma [1994] Supp. 2 SCC 356, a similar question had arisen under the Electricity Act. It was held that the board and the amalgamated company are entitled under that Act to enter into an agreement. The employees existing-as on that date and against whom disciplinary proceedings were pending on that date could not be deemed to be employees of the board. In the absence of any such agreement, it was held that by operation of section 6(l)(ii) of the Electricity Act, the board was not bound to take such an employee into the service. In Rashtriya Mill Mazdoor Sangh v. National Textile Corporation (South Maharashtra) Ltd. [1996] 1 SCC 313; 88 FJR 297, a similar question had arisen fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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