TMI Blog2008 (2) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... s one of the Regional Rural Banks constituted under Section 3 of the Regional Rural Banks Act, 1976 [hereinafter referred to as 'the Act']. Section 6(2) of the Act lays down that Gramin Bank is sponsored by the State Bank of India which has got 35% shareholding, whereas the Government of India has got 50% shareholding while State of U.P. has got balance 15% shareholding. The Central Government in exercise of the powers conferred by Section 29 read with Section 17 of the Act, after consultation with the National Bank and the Sponsor Bank, notified the Regional Rural Banks (Appointment and Promotion of Officers and Other Employees) Rules, 1998 [hereinafter referred to as 'the Rules']. The Third Schedule of the Rules deals with the appointment to different categories of officers and other employees to Group A, B and C either by direct recruitment or by promotion. Clause 2 of the Schedule deals with the promotion/appointment to the post of Scale II Officer while Clause 3 deals with the promotion/appointment to the post of Scale I officer. Clause 2 also provides that the post of Scale II Officer shall be filled entirely by promotion on the basis of seniority-cum-merit. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have submitted a complaint to the Chief General Manager, State Bank of India, against the Chairman of the Gramin Bank. 6. The appellants filed writ petition in the High Court of Allahabad praying for quashing of the test held on 18.08.2002 inter alia on the ground that the test was conducted by the then Chairman of the Gramin Bank, Sri Zameer Hasan Respondent No.10 herein, in spite of the fact that his real brother-Syed Mohd. Rizvi and cousin-Kazim Hussain Rizvi who were working as Clerk-cum-Cashiers, were also the candidates for promotion to the post of officer Scale I. Respondent No.10 on 28.05.2004 was transferred as General Manager of the Gramin Bank, Deorai, but he still declared the result of the examination on 01.06.2004. The State Government appointed inquiry committee consisting of two officers of the Directorate of Institutional Finance, Lucknow. The Committee submitted its report on 18.07.2004 which was forwarded to the Gramin Bank by the Secretary, Banking Department, Government of U.P. through communication dated 27.07.2004. The appellants prayed that in view of the report submitted against improper functioning and acts of commission and omission of the officers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tava and Ravi Pratap Singh filed impleadment applications which were allowed by the High Court. The newly added respondents filed detailed counter affidavits. The parties have completed their pleadings. Having heard the learned counsel for the parties and having perused the entire record, the High Court has not found any substance in the writ petition of the appellants and accordingly dismissed the same inter alia holding that the Banking Institute, Mumbai, an examining body, was not a party in writ petition; the appellants have failed to prove allegation of mala fide against Sri Zameer Hasan, the then Chairman of the Gramin Bank; the appellants are estopped from challenging the examination held on 18th August, 2002 as they had participated in the said examination; the appellants are members of Workers' Union who filed the suit in the trial Court and as such the appellants are playing hide and seek with the Court and the inquiry report does not indicate that the examination was vitiated due to influence of Sri Zameer Hasan respondent No.10. Hence, the appellants have filed this appeal questioning the correctness and validity of the judgment of the High Court. 9. We have he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was conducted by respondent No.10 in which his real brother and cousin also appeared for promotion to the post of officer Scale I. In support of this submission, reliance is placed upon the report dated 18th July, 2004 submitted by a Committee of two officers which was communicated to the Gramin Bank by the Secretary, Banking Department, by his letter dated 27th July, 2004. He also submitted that the bias of respondent No.10 is writ large on the face of the record as the result of the written test was declared on 01st June, 2004 by Sri Zameer Hasan as Chairman of the Gramin Bank in spite of the fact that he took transfer on 28th May, 2004. He next contended that the question papers set by the Banking Institute, Mumbai, were kept by respondent No.10 in his custody although as per practice the question papers were to be kept in the custody of two officers of the Bank and the answer sheets were also kept by him in his custody before dispatching them to the institute for evaluation which were dispatched by a private courier and not through the postal services. He further contended that one of the relatives of respondent No.10, namely, Syed Md. Rizvi, was on medical leave during the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppear to be done. The Court further held that this rule is not confined to cases where judicial power stricto sensu is exercised. It is appropriately extended to all cases where an independent mind has to be applied to arrive at a fair and just decision between the rival claims of parties. Since the instrumentalities of the State are expected to discharge their functions in a fair and just manner the applicability of this rule is extended to the decision-making process of a selection committee constituted for selecting personnel for service in such instrumentalities. Further, it is held that if a selection committee is constituted for the purpose of selecting candidates on merits and one of the members of the selection committee is closely related to a candidate appearing for the selection, it would not be enough for such member merely to withdraw from participation in the interview of the candidate related to him but he must withdraw altogether from the entire selection process and ask the authorities to nominate another person in his place on the selection committee, because otherwise all the selections made would be vitiated on account of reasonable likelihood of bias affecting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regional Rural Banks Act, 1976 which is an instrumentality of the Central Government and, therefore, the State Government has no control whatsoever over the Gramin Bank to order an inquiry. He contended that no allegation of change of answer sheets or manipulation of the marks has been alleged or pleaded by the appellants in the writ petition and no supporting evidence except bald assertion of mala fide has been alleged against respondent No.10 by the appellants nor any allegation of bias or mala fide has been alleged against the Examination Committee or the Selection Committee consisting of one Director of the Sponsor Bank and one Director of the National Bank, who interviewed the selected candidates whose names were sponsored by the Examination Committee. 14. Mr. M.N. Krishnamani, learned senior Advocate appearing for respondent No.15, submitted that the appellants have not made any allegation regarding the promotion of the selected candidates from Scale I to Scale II, therefore, there is no perversity or illegality in the judgment of the High Court which requires interference by this Court. In nutshell, the learned counsel appearing on behalf of the contesting respondents inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nistrative action cannot be sustained. If on the other hand allegations pertain to rather fanciful apprehension in administrative action, question of declaring them to be unsustainable on the basis therefor, would not arise. 16. In Dhampur Sugar (Kashipur) Ltd. v. State of Uttaranchal and Ors.'s case (supra), this Court dealing with the question of mala fide exercise of power, held as under: Allegations of mala fide are serious in nature and they essentially raise a question of fact. It is, therefore, necessary for the person making such allegations to supply full particulars in the petition. If sufficient averments and requisite materials are not on record, the Court would not make fishing or roving inquiry. Mere assertion, vague averment or bald statement is not enough to hold the action to be mala fide. It must be demonstrated by facts. Moreover, the burden of proving mala fide is on the person leveling such allegations and the burden is very heavy . In the present case, except alleging that the policy was altered by the Government to extend the benefit to IGL, no material whatsoever was placed on record by the appellant. It is, therefore, not possible to hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccessful candidates were held on 23rd September, 2004 and 24th September, 2004. The inquiry ordered to be conducted by the State Government in regard to the mismanagement and other irregularities etc. of the Gramin Bank, was ex parte without giving any intimation to the Board of Directors of the Gramin Bank. The State Government ex facie does not exercise any control over the Gramin Bank since under Section 29 of the Act, the Gramin Bank is governed by the policies of the Central Government. The High Court in its judgment has observed that the report submitted by the members of the committee appointed by the State Government did not point out any infirmity in the conduct of the written examination. The appellants have not made the Banking Institute, Mumbai, who conducted the examination, as party in writ petition nor any allegation of mala fide or mal- practice has been alleged against the institution. The appellants have also not made Sri Syed Md. Rizvi, brother, and Sri Kazim Hussain Rizvi, cousin, respectively of the respondent No.10 as parties in the writ petition who, admittedly, were the successful candidates in the written test for the posts in question. The written test was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court held that the inference of mala fides be drawn by reading in between the lines and taking into account the attendant circumstances. 19. Thus, as a proposition of law, the burden of proving mala fide is very heavy on the person who alleges it. Mere allegation is not enough. Party making such allegations is under the legal obligation to place specific materials before the Court to substantiate the said allegations. There has to be very strong and convincing evidence to establish the allegations of mala fides specifically and definitely alleged in the petition as the same cannot merely be presumed. The presumption under law is in favour of the bona fides of the order unless contradicted by acceptable material. In the present case, no specific and definite real danger of bias has been made against respondent no.10 to indicate how he was in a position to influence or manipulate the result of the written test conducted by the Banking Institute, Mumbai. There are no specific pleadings nor any proof thereof in the writ petition filed by the appellants. In such circumstances, the Court is under no obligation to entertain the pleas of mala fide or arbitrariness. In the backdro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that there was some fault with the written examination. There is no averment whatsoever in the report which may indicate that the list of the successful candidates was not in accordance with the merits of the candidates prepared by the examining body. We are, however, satisfied on the material placed before us that the appellants have been given fair treatment in the written test held by the Institute but as they had failed to qualify the test, they, on any legitimate ground, cannot be permitted to allege wholly unfounded, irresponsible and uncalled for allegations of favoritism or mala fide against respondent No.10. For the lack of specific and definite allegations of mala fide in the writ petition supported by the evidence in proof of such facts of mala fides, the writ petition of the appellants has been rightly rejected by the High Court. We find no fault or infirmity or perversity in the reasoning of the High Court warranting interference in this appeal. 21. For the above said reasons, there is no merit in this appeal and it is, accordingly, dismissed. In the facts and circumstances of the case, the parties are left to bear their own costs. - - TaxTMI - TMITax - Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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