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2019 (3) TMI 403

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..... former, i.e., worker is defined under Section 2(s) of the Industrial Disputes Act, 1947 and is governed by that Act whereas the latter, i.e., officer is not governed by the Industrial Disputes Act but is governed by separate service rules. Both these categories of employees, therefore, cannot be equated with each other and nor can be placed at par for providing equal qualification or/and disqualification for their nomination as a Director in the Board of Directors. Fourth, Article 14 of the Constitution applies inter se two equals and not inter se unequals. Fifth, the nominee worker/employee has only a right under the Act to be appointed as Director from the category of worker/employee in terms of Section 9 (3)(e) of the Act provided the concerned nominee whose name is recommended by the Union fulfills the qualifications laid down in Clause 3(2)(iii) of the Scheme but not beyond it. Appellants then submitted that once the employee is nominated to the Board of Directors may be from different categories specified under Section 9, then no distinction should be made between them while prescribing the qualification and disqualification - This submission has also no merit. A mere rea .....

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..... Section 9 of the Act sets out various categories from which one Director from each of such categories is nominated in the Board of Directors. Clause(e) deals with a category of workman/employee Director whereas clause(f) deals with a category of officer/employee Director for their nomination in the Board of Directors. 7) In exercise of powers conferred under Section 9(1) of the Act, the Central Government has framed a Scheme calledThe Nationalized Banks (Management and Miscellaneous provisions) Scheme, 1970. 8) Chapter II of the Scheme deals with Board of Directors. Clause 3 of the Scheme deals with the constitution of the Board whereas Clause 3(2)(iii) deals with disqualification of a workman/employee for being nominated as a Director. 9) So far as the procedure relating to the nomination of a Director out of the officer/employee category falling in clause(f) of Section 9(3) of the Act is concerned, it is provided in the third schedule to the Scheme. 10) So far as the case at hand is concerned, it relates to the nomination of a Director from the workman/employee category falling in clause (e) of Section 9(3) of the Act and also relates to his disqualification for being .....

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..... 970 be struck down as being ultra vires the Constitution. 17) The respondents opposed the writ petition by filing their counter affidavit. The respondents placed reliance on the provisions of the Act and the Scheme framed thereunder and contended inter alia that the challenge made in the writ petition has no factual or/and legal basis. 18) By the impugned order, the High Court dismissed the writ petition finding no merit therein, which has given rise to filing of this appeal by way of special leave by the unsuccessful writ petitioners Union of workers/employees in this Court. 19) Heard Mr. Sidharth Bhatnagar, leaned counsel for the appellants and Mr.Pranab Kumar Mullick Ms. Bhakti Pasrija, learned counsel for the respondents. 20) Having heard the learned counsel for the parties at length and on perusal of the record of the case, we find no merit in this appeal. 21) At the outset, we find that so far as the challenge to the impugned communication dated 10.10.2009 and enforcement of the appellants letter dated 08.06.2009, i.e. (Relief Nos.(a) and (b) in the writ petition) is concerned, both the reliefs have been rendered infructuous. 22) It is for the reason that .....

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..... e (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), to be nominated by the Central Government in such manner as may be specified in a scheme made under this section; (f) one director, from among the employees of the corresponding new bank who are not workmen under clause (s) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), to be nominated by the Central Government after consultation with the Reserve Bank; Clause 3(2)(i),(ii) and (iii) of the Scheme 3. Constitution of the Board( 1) The Central Government shall by notification in the Official Gazette, constitute the Board of a Nationalised Bank. (2) (i) The director referred to in clause (e) of subsection (3) of section 9 of the Act, shall be nominated by the Central Government from out of a panel of three such employees furnished to it by the representative union, within a date to be specified by the Central Government, which date shall not be more than six weeks from the date of communication made by the Central Government, requiring the representative union to furnish the panel of names: Provided that where the Central Government is of the opinion that owing to the del .....

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..... y and, therefore, reliance placed on the principle enshrined under Article 14 of the Constitution by the appellants is wholly misplaced. Fifth, the nominee worker/employee has only a right under the Act to be appointed as Director from the category of worker/employee in terms of Section 9 (3)(e) of the Act provided the concerned nominee whose name is recommended by the Union fulfills the qualifications laid down in Clause 3(2)(iii) of the Scheme but not beyond it. 30) Learned counsel for the appellants then submitted that once the employee is nominated to the Board of Directors may be from different categories specified under Section 9, then no distinction should be made between them while prescribing the qualification and disqualification. 31) This submission has also no merit. A mere reading of Section 9(3) clause (a) to (i) would go to show that the Board of Directors consists of persons coming from different fields. There cannot, therefore, be a uniform qualification or/and disqualification for such persons. Indeed, the qualifications and disqualifications are bound to vary from category to category and would depend on the post, experience and the stream from where a pers .....

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