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2004 (2) TMI 726

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..... in this appeal, it may not be necessary to dwell at length the fact of the matter. Suffice it to point out that Respondent Nos. 3 to 12 herein at all relevant times were holding the posts of Regional Manager. They along with the Respondent Nos.1 and 2 herein were considered for promotion to the post of Assistant General Manager upon following the procedures laid down in a circular letter dated 11.2.1984 issued in terms of Regulation 17(1) of the Andhra Bank (Officers') Service Regulations, 1982, (hereinafter referred to as 'the Regulations', for the sake of brevity). Upon consideration of the cases of the private parties herein, the respondent Nos. 3 to 13 were promoted; whereafter the writ petition was filed by the respondent .....

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..... nt-Bank before framing the regulations had consulted the Reserve Bank of India and also obtained prior approval of the Central Government in terms of Section 19 of the Act. The policy decision as regard promotion of the officers having been framed in terms of Regulation 17 and in conformity with the guidelines issued by the Union of India, Mr. Reddy would submit, it was not necessary to consult the Reserve Bank of India or obtain prior permission of the Central Government. It is not in dispute that the appellant-Bank was a 'corresponding new bank' within the meaning of the provisions of the Act. Section 8 of the Act obligates every corresponding new bank to be guided by such directions as regard the matters of policy involv .....

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..... framed the Regulations known as 'Andhra Bank (Officers') Service Regulations 1982'. Regulation 17 of the said Regulations reads thus : 17. Promotions : 1. Promotions to all Grades of officers in the Bank shall be made in accordance with the policy laid down by the Board, from time to time, having regard to the guidelines of the Government, if any. 2. For the avoidance of doubts, it is clarified that this regulation shall also apply to promotions of any category of employees to the Junior Management Grade. It appears that the Central Government had also issued guidelines purported to be in terms of Regulation 17 of the Regulations. It was not the contention of the Respondent Nos.1 a .....

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..... f Directors to make regulation but it is another thing to say that the regulation is arbitrary and ultra vires as it did not contain sufficient guidelines. The High Court did not come to the conclusion that essential legislative competence of the Parliament has been delegated to the Board of Directors in terms of Section 17 of the Act or otherwise. The regulations in terms of sub-section (2) of Section 12 read with Section 19 of the Act were required to be framed by the Board of Directors. For amending the regulations each time they were not only required to consult the Reserve Bank of India and obtain previous permission of the Central Government but also the amended regulations were required to be laid before both the Houses of t .....

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..... question as to whether a statute is ultra vires Constitution of India having conferred unguided, uncanalised or wide power cannot be determined in vacuum. It has to be considered having regard to the text and context of the State as also the character thereof. It deals with a sensitive subject. Section 18 has been enacted for the purposes specified therein. It is well- settled that guidelines for enacting the said provision must be found out from the subject matter covering the field. For the said purpose even the preamble of the Act may be looked into. The notification of discovery of uranium or thorium, control over mining operations, the disposal of uranium, power to obtain information are within the scope and ambit of .....

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