TMI Blog1997 (10) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... les of workers doing the same or similar work in an organisation. It has not been applied when there is a basis or an explanation for the difference. 2. Historically, equal pay for work of equal value has been a slogan of the women's movement. Equal pay laws, therefore, usually deal with sex-based discrimination in the pay scales of men and women doing the same or equal work in the same organisation. For example, the Equal Remuneration Act, 1976 provides for payment of equal remuneration to men and women workers and is meant to prevent discrimination on the ground of sex against women in the matter of employment, The Equal Pay Act, 1970 and the Equal Pay (Amendment) Regulations, 1983 in Great Britain are for a similar purpose. The same doctrine has also sought to protect disadvantaged groups against similar discrimination. We have interpreted and applied the doctrine even more widely to prevent discriminatory pay scales within an organisation which is owned by or is an instrumentality of the State, provided that the different pay scales that exist in one organisation, are applied to employees doing work of equal value, and there is no rational explanation for the difference. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank was transferred to the State Bank of India which was the new bank constituted under the said Act to carry on banking business. The Preamble to the Act states that for the extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes it is expedient to constitute a State Bank of India and to transfer to it the undertaking of the Imperial Bank of India. 6. Four years later, the State Bank of India (Subsidiary Banks) Act, 1959 was passed. The Statement of Objects and Reasons states, inter alia, that the future of certain major State-associated banks which are owned in part by the State Governments or with which such Governments have been closely associated, has been under consideration for some time. The question has recently been comprehensively re-examined, with particular reference to the necessity for making adequate and proper provision for the management of treasuries and sub-treasuries in the area served by these banks and the need for the expansion of these banks in these areas; and the view of the banks themselves have been ascertained. The management and the shareholders of the Bank of Bik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have an officer of the Reserve Bank nominated by that bank; not more than five Directors to be nominated by the State Bank, of whom not more than three shall be officers of that bank; one Director from among the employees (workers) of the subsidiary bank to be appointed as set out therein; one Director from amongst such employees of the subsidiary bank as are not workmen, to be appointed as set out herein and two Directors to be elected in the prescribed manner by the shareholders other than the State Bank. The section also provides for a Director to be nominated by the Central Government in consultation with the State Bank. 10. Under Section 36, a subsidiary bank shall, if so required by the State Bank, act as agent of the State Bank at any place in India for the purpose of certain businesses specified therein. There is a similar provision for a subsidiary bank acting as an agent of the Reserve Bank if so required by the Reserve Bank. 11. Based on these provisions, it is submitted before us that the business of each of the subsidiary banks is under the control and management of the State Bank of India and, therefore, the employees of the subsidiary banks should be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holder. In the administration of their affairs the subsidiary banks are autonomous and the State Bank of India in any event cannot be considered as an employer of the staff of the subsidiary banks. Section 50 quite clearly provides that the officers and employees of a subsidiary bank cannot be considered as the officers and employees of the State Bank of India for any purpose. The officers and employees of subsidiary bank are governed by the terms and conditions of employment of the subsidiary bank by which they are employed and they are borne on the cadre of employees of the subsidiary bank. These submissions have considerable merit. 14. Even with regard to the Board of Directors of a subsidiary bank, the State Bank of India has contended that they have power to nominate five Directors, Out of them, the three non-official Directors who are nominated by the State Bank of India represent various areas of specialisation such as agriculture, accountancy, small-scale industry, etc. with a view to ensure that the Board of Directors of the subsidiary banks is broad-based and is in a position to be really useful to the bank. A nominee Director does not cease to be independent and must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iefly at the nature of the grievance in respect of terminal or redral benefits, the employees of the subsidiary banks are entitled to provident fund or pension, and they are also entitled to service gratuity. The employees of the State Bank of India are entitled to provident fund and pension. They are also entitled to gratuity under the Payment of Gratuity Act. According to the petitioners, the employees of the subsidiary bank should also be given pension in addition to the terminal benefits which they already have. It is, however, pointed out by the State Bank of India that the terminal benefits in a subsidiary bank are comparable to the terminal benefits in nationalised banks, where also there is an option between pension or contributory provident fund. Regarding gratuity, the employees of a nationalised bank are entitled to service gratuity or gratuity as per the Payment of Gratuity Act, whichever is higher, which is the position in the subsidiary banks also. Looking to this comparative position, we do not see any reason to infer discrimination. 18. In respect of medical benefits, the hospitalisation scheme in the State Bank of India provides for 100% payment for self and 75% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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