OFFICERS' CAUSEAUGUST - 2017

Vol. 37 No.8 Single Copy : RS. 4/- AUGUST - 2017

2NATION FIRST, ORGANISATION NEXT, INDIVIDUAL LAST

Editorial

he recent incidence of issue of arrestwarrant by the Supreme Court against a

former judge of the Kolkata High Court onlyshows lack of a system in the country toinvestigate and prosecute the recalcitrantofficers of the judiciary and try those officerswho are showing impropriety against the higherjudiciary including committing irregularitiesviolation of discipline, indulge in corruption, sexualharassment etc.

The Judicial standard and Accountability Bill2010 was passed by the Parliament during March2012, with the object of cleansing the judicialsystem in India and establishing credible andexpedient mechanism for investigation intoindividual complaints for misbehavior or incapacityof the judges of Supreme Court or the HighCourt, setting up of scrutiny panel and aninvestigation committee etc. It is indeed a stepahead to restore some of the fundamental valuesof the judicial bodies. But unfortunately theact did not come into force. If the Judicialstandard and Accountability Bill was allowed tobecome a law, the present embarrassing situationwould not have happened, when the judge raisedcertain short comings in the current system ofinvestigation. At the same time he has alsooverstepped his jurisdiction on numerousoccasions. He has been purporting to pass

JUDGE WHO DEFY THE LAW

unprecedented ex-party orders against thejudges of the Apex Court, trying to nullify theirvarious orders, and including passing ordersrestraining them from leaving the country,unprecedented in the annals of legal history ofIndia.

The judge who has committed the contempt wasprobably under premise that it is throughimpeachment in Parliament a judge could havebeen removed which will be a cumbersome processunder the present coalition system in Parliament,an impression that is too far fetched.

Indian constitution provides Supreme Court thepower to punish those who have committedcontempt for the purpose of preventinginterference with the court of justice and ensurerule of law and as such it is the duty of theApex Court to restore the reputation of thejudiciary. The judge who is presently accusedof contempt is a product of collegium system ofappoint of judges by judges themselves. It is anirony that the judge has pointed out his fingeragainst the judge who had recommended hisname under the collegium system of appointmentof judges.

When there were allegation that theappointment and transfer of judges in the High

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SUCCESS AWAITS AT THE DOOR WHERE DILIGENCE IS

Officers' Cause, August - 2017 3

Court and Supreme Court are not transparentas even revealed by a senior judge of the SupremeCourt who is also a member of the collegium, theCentral Government had introduced aconstitutional amendment bill in Parliament, knownas National Judicial Appointment Commission(NJAC) Bill that was passed by the Parliamenton 14th August 2014 thereby repealing the oldsystem of appointment of judges throughcollegium. This constitutional amendment aboutthe manner in which judges are appointed hadbeen in debate for the last couple of years.According to the amendment the appointmentand transfer of judges of High Court and SupremeCourt are to be done by a commission that includeChief Justice of India, two senior judges ofSupreme Court, Union Law Minister and othertwo eminent persons nominated by the Prime

Minister and leader of opposition in Parliament.

When the bill did not find favour with theSupreme Court, a five judge bench of theSupreme Court scrapped such law, there byrestoring the collegium system of appointmentof judges. If the system under the newenactment was not scrapped the country wouldnot have witnessed the present embarrassingsituation.

The current issue has also triggered a strongpitch within the Supreme Court to reconsiderthe age old collegiums system of judicialappointments. In fact the judge who dissentedwhi le quashing the National Judic ia lAppointments Commission laws had even saidthat Justice Karnan’s case is a classic exampleof how the collegium system has failed.

Text of Joint Circular No.1/2017, Dated 1stAug.2017 by the Officers’ Organization.

As advised by IBA, the Sub-committee constituted todiscuss demands relating to service conditions ofofficers which are Non-financial in nature met todayat IBA office at 11:30 a.m. The IBA Sub-committeewas headed by its Chairman Shri Prashant Kumar,Dy.MD, SBI along with Shri S.K. Chaudhury, GM(BOB), Shri B. Ashok, GM (CBI), Shri K. Virupaksha,GM (Canara), Shri Ujjal Kumar, GM (UCO), ShriBiswal, GM (BOM) and Shri V.G. Kannan, CEO, IBAwith HR Dept. functionaries.

Our representatives Com. Dilip Saha, Com.Y. Sudharshan (AIBOC), Com. S. Nagarajan (AIBOA),Com. K.K. Nair (INBOC) and Com. Sunil Deshpande(NOBO) participated in the meeting. As the terms ofreference is on non-financial demands, we presentedthe following issues viz. 5 day week, Regulatedworking hours, Accountability Policy, Improvementsand uniformity in the matter of discipline and AppealRegulations, Compassionate grounds

appointments and Branch Categorization. We alsoraised issues such as Family Pension and 100% DAneutralization for the pre-November 2002 pensioners.We are happy to inform that the Chairman of theSub Committee was positive in his approach andexpressed to resolve the issues for the benefit of the

WAGE REVISIONSUB COMMITTEE FOR OFFICERS

banking fraternity as a whole. He also emphasizedthe need to keep the position of industry in mind.Members of the Sub Committee contributed for thehealthy exchange of the views to arrive at a fair andtransparent decisions at the end of the exercise.

It was agreed to form a Small Committee to addressthe problems encountered in the matter of Disciplineand Appeal Regulation (which is pending from thelast wage revision) and uniform Accountability Policyto take forward for appropriate action by authoritiesat various levels. With regard to categorizations ofBranches the management representativesreiterated that the same should be left to theindividual banks. On the matter of “Negotiationrestricted up to Scale- III” only their stand wasunchanged. We, however, urged upon them to againtake up with the concerned Bank Managements forfull mandate as this could be a breaking point.

On our part, we expressed our collective wish to takethis meaningful exercise forward to the logical endfor the benefit of our community but firmly expressedthat the decision of the management committee ofIBA should not provoke the situation and createstands-off between us and IBA. We are happy tostate that the meeting indeed was good andmeaningful start in a positive direction. Let us awaitfor the next meeting.

Wage Revision

ARISE, AWAKE, STOP NOT TILL THE GOAL IS REACHED

4 Officers' Cause, August - 2017

SALARY REVISION NEGOTIATIONSIN BANKING INDUSTRY MERGER OF PUBLIC SECTOR BANKS

onfederation had sent a communication to theChairmen/ CEO’s of all Public Sector Banks

citing various issues on the subject such as:

Right from 1984, when the first Joint Note wassigned between IBA and the Officers’ Associations,the pay scales, service conditions, etc. have beenmade composite from Scale-I to Scale-VIInotwithstanding the fact that even at that time,Scale-VI and Scale-VII Officers were defined as TopExecutive Grade Officers. In all the subsequentdiscussions and Joint Note signed between IBA andOfficers’ Associations including the last one signedin May, 2015, it has been a composite one.

In this background, we find that the stand of someof the managements to restrict their mandate uptoScale-III only is preposterous and prejudiced.Further, based on this mandate of a few Banks, theIBA has also taken a stand that the discussion onthe Charter of Demands of Officers will be restrictedupto Scale-III Officers only. You will appreciate thatthe majority of the Banks have given unconditionalmandate and hence the stand of the IBA to restrictthe negotiations is obnoxiuos as it will vitiate theexisting procedure followed so far.

Having regard to the practice so far and the OfficerService Rules(OSR) being a composite set of rulesfor Officers from Scale-I to VII and considering thefact that a large majority of the Banks have giventheir full mandate, it would be fair and proper notto restrict the negotiations upto Scale-III. Whileconveying our strong resentment, on our behalf, youare also requested to impress upon the managingcommittee our stand, that, it is non negotiable. Inthe mean time the United Forum of Bank Unionsand the four officers organisation havecommunicated their resentment to the IBA (copyenclosed).

The Public Sector Banks are passing through adifficult period with deteriorating asset quality andfast receding capital base. The banks need capitalfor absorbing many of the losses out of stressedassets. It is very regrettable to learn that, theGovernor of the regulator of Banks in Indiacommented that merger of banks would help indealing with the problem of stressed assets of theseBanks which is very immature and irresponsible onhis part. It is a well-known fact that the NPA position

of PSBs today is not the creation of the Banks perse, rather it is attributed to the lopsided policies ofsuccessive Govts which virtually paved the way forsanction of big ticket size Corporate Loans to ahandful of chosen borrowers, most of whom haveturned wilful defaulters. Neither RBI nor thesuccessive Govts could come out with any stringentrecovery mechanism for such loans, and have beencontinually passing the buck on to PSBs. This hasbeen rightly pointed out by the ParliamentaryStanding Committee on Finance. The declarationof willful default as a criminal offence is still to seethe light of the day, which further worsens thesituation for the PSBs. It is the need of the hour thatour regulators come out with more teeth for tacklingNPAs, as recommended by the ParliamentaryStanding Committee instead of making suchirresponsible statements. Those handful of corporateloans, which have today cut a sorry NPA profile ofPSBs, have been thrust upon them withoutconsidering external factors like change inInternational Trade agreements, global markettrends etc. Rather, it appears that RBI is hell benton implementation of BASEL III Norms and AssetQuality Review (AQR) by any means, even knowingthat the AQR will result in mounting losses for thebanking sector.

Mere merger and acquisition of weaker Bank’swould not help to get rid of problems which needsa deeper introspection rather than an abruptremedial measure. Instances from past can beillustrated how mismanaged and ill timed mergersor acquisitions of huge multinationals had resultedin huge chaos. A recent experience, being theinstance of merger of Associate Banks with SBIresulting in a loss of 391 crores for the first time inthe history of SBI. The Chairman of SBI has acceptedthat the pain is there to continue. The formation ofBanks Board Bureau, National Company LawTribunal, Insolvency and Bankruptcy code and nowFinancial Resolution and Deposit InsuranceAuthority are only steps towards privatisation whichis not in the interest of the country. The removal ofDevelopment Finance Institution is consequentlyforcing the banks to lend to infrastructure.Conversion of DFIs into Private Bank is alsocompelling the Banks to lend to Telecom & PowerSector and asking them to have provision for evenstandard assets. Changing NPA norms every nowand then and all afore mentioned steps are only

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Officers' Cause, August - 2017 5WORK IS WORSHIP , DO YOUR DUTY

gimmicks to blame the banks. There is an old sayingwhich goes like “Call the Dog mad and shoot”. Inview of the foregoing, I would like to request you toraise your voice against the merger of public sectorbanks and the retrograde policies of the Govt. andRBI. The Preamble of the Financial Resolution andDeposit Insurance bill illustrates that it is to establisha framework to carry out the resolution of certaincategories of financial service providers in distress,to provide deposit insurance to consumers of certaincategories of financial services and for designationof Systemically Important Financial Institution ofCentral Govt. for resolution. The bill covers SBI,

Public Sector Banks, RRBs, Co-op Banks, LIC andGIC, which are already controlled by RBI, FinanceMinistry and IRDA. The aim appears to give out-and-out power to the authority which will be largerthan the prevailing authorities. The most dangerousclauses are, “Notwithstanding anything containedin any other law, this Corporation / Authority willhave powers to liquidate RRBs, SBI, LIC, GIC, PublicSector Banks & Co-operative Banks.” It is reallysurprising to see why this draconian power is beingvested to one authority.

This was to enable them to put strong argumentsin favour of the Public Sector Banks.

SAVE PUBLIC SECTOR DAY-CELEBRATEDIN A HISTORIC WAY AIBOC LEADS FROM THE FRONT

From the text of AIBOC Circular No. 2017/42 Dated24th July, 2017.

On the occasion of the 48th anniversary of banknationalisation in India, the All India BankOfficers Confederation (AIBOC), the largest

officers’ organization having membership ofaround 320000 officers observed July 19 as‘Save Public Sector Day’ all over the countryunder the banner of United Forum of Bank Unions(UFBU).

ALL INDIA BANK STRIKE - AGITATIONAL PROGRAMS

Text of UFBU Circular No. UFBU/2017/14dated 25th July, 2017. As discussed and decidedin our meeting held at Mumbai on 20-7-2017,

we give below the following programmesfor effective implementation by ourmembers:

03.08.2017 Centralised Demonstrations & Rallies at all Centres10.08.2017 Centralised Demonstrations & Rallies at all Centres15.08.2017 to 21.08.2017 Press Meet at all State CapitalsBetween 5th Aug. to 22nd Aug. Mass Conventions in Mumbai, Delhi, Kolkata and Chennai.

Dates to be finalized locally.16.08.2017 Centralised Demonstrations & Rallies at all Centres18.08.2017 Dharna at all State Capitals21.08.2017 Badge-wearing and Lunch Hour/after office hours

Demonstrations at all Centres22.08.2017 ONE DAY ALL INDIA BANK STRIKE15.09.2017 Morcha & Dharna at Jantar Mantar New Delhi and Procession to

Parliament House, New DelhiOCTOBER/ NOVEMBER 2017 2 DAYSTRIKE

FORCING OF OFFICERS TO WORK ON SUNDAYS/HOLIDAYSFEDERATION ESCALATES ISSUES AT THE HIGHEST LEVEL

fficers are virtually being harassed by beingasked to work on all holidays in some pretext

or the other. After Jandhan, it was Mudra,de-duplication, AOF, NPA Recovery, Audit, Year end,De-monetisation and now “The Gyanshala” for

popularizing the Pradhan Mantri Awas Yojona. OurOfficers have worked tirelessly and successfullyimplemented all such schemes including theGovernment schemes, but the Management did nottaken of their various issues such as:

Labour Issues

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5 Officers' Cause, August - 2017

a) Payment of a uniform compensation for thesacrifice of a holiday.

b) Huge plethora of pending issues with theBank like pending monetary issues likeenhancement in leased accommodation,furniture allowance, compassionateappointment, fitment and issue of personalallowance, conversion of RMRO’s/CRE’s,Compassionate Appointment, issuespertaining to stoppage of stagnationincrement and running scale, CDS, CrossSelling issues, Inter Circle transfers, and moreimportantly mandate for all scales for wagerevision.

c) Issues with the Government like pendingappointment of Officer-Director on Boardsof Banks, Amendment to Gratuity Act,Residual issues of 10 th Bipartite likeSuperannuation, regulated working hours,unconditional mandate and attempts tothrottle the Public Sector Banks. While weimplement all the schemes of theGovernment, our issues remain in the coldstorage.

2. When the issue of working on 6th August, for theworkshop came up; Federation immediately took upthe matter with the Chairman, the MD and the HRdepartment. They appreciated the seriousness of thematter and have immediately informed the concernedto put an end to such unhealthy practice of callingofficers to work on holidays. They have also assuredthe Federation that the same will be conveyed to allthe circles immediately, and that a compensation inthe event of an emergency situation of working onholidays will be worked out. Considering thesentiments expressed Federation had assured thatthe officers will attend the programme on the 6th. Atthe same time, Federation had also conveyed thatfrom the next week, officers will not work onholidays, 2nd and 4th Saturday and Sundays and

requested the controllers and AGM’s and RM’s notto call officers for Review meetings and suchavoidable, postponable meetings on Sundays andholidays, as it is bound to lead to friction and IRissues.

3. Federation had also addressed a letter to theManagement expressing their serious concerns.‘Work Life Balance’ is as important to officers downthe line as it is to controllers and executives. as thereis a need to ensure a work life balance for betterproductivity in the long run.

4. It is understood that in various circles, thecontrollers have been issuing letters, messagesthrough Whatsapp, SMS asking officers to come onholidays/Sundays including threatening them ofconsequences. Therefore, all the members wererequested to ask for written instructions from theircontrollers to come for working on Holidays/Sundays. Members are also advised to send thecopies of such communications/ instructionsimmediately to Circle Association/FederationOffice for further escalation of the same.

5. At the same time the officers were also asked toensure that they prioratise their work areas andensure timely completion of all the important workwell within the time during the working days andensure that the Banks business grows. Federationhad also requested the controllers not to indulge inforcing officers for misselling of our cross sellingproducts as it is understood that all ‘P’ Reviewmeetings are predominantly cross selling meetings.Exerting undue pressure on cross selling at the costof Bank’s own business has led to many topperforming circles slide down in rankings and hasled to slump in the performance. Officers wererequested not to indulge or encourage suchpractices as this will be taken up very seriously andat all levels, as this is detrimental to the interests ofthe Bank.

INTER CIRCLE TRANSFERS – POST MERGERS

robationary Officers of 2015 batch recruited bythe erstwhile Associate Banks have been

asked to give an option for a posting between twoor three circles indicated by the Bank. Those of themwho did not opt for any of the choices indicated bythe Bank were to be retained in their present circlewhere they were working.

2. But that many of those officers who have notexercised any option have also been transferred tothe choices indicated by the Bank.

3. At the time of mergers, Federation was assuredthat there would be a onetime inter circle transferexercise covering all officers of E-Associate Banksand SBI so as to enable them to move to their

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BE TRUTHFUL, BE FEARLESS

Officers' Cause, August - 2017 7

respective circles of choice. Transfers in AssociateBanks were invariably inter circle or inter zone.Therefore many officers are struck in faraway circles.Now, after mergers there is a possibility of suchofficers being stuck permanently in such far awaycircles (Including Scale 1,2,3 officers) as ICT in SBIis ’15 in a year’ as per the extant policy.

4. Federation had taken up the matter with thecorporate center to ensure for a comprehensivepolicy on ICT and a onetime exercise alongside tomitigate the problems of such officers, as there areanxious queries from across the country, and alsorequested for a comprehensive discussion on thisissue.

izeable numbers of officers are suffering fromCancer and in many cases the disease re-lapses

after initial recovery. Cases are reported where theconcerned officer has exhausted his Sick Leave andPrivilege Leave. These officers are compelled to availExtra Ordinary Leave on loss of pay.

2. Though the Bank reimburses the Medical expenses,a sizeable amount is required to spend by theofficers which is out of the purview of Medical

Reimbursement Scheme. These results in financialhardship to the officers and his family. Under thecircumstances the Federation has taken up theissue with Corporate Center to introduce additionalSick Leave of 6 months (full pay) in such cases wherethe officer is forced to exhaust his Sick Leavefor availing treatment for Cancer. Alternatively,the Bank may permit the willing officers totransfer part of their Sick leave to the affectedco -officers.

t is reported that the General Managers areinstructing the Branches/Operating Staff via Video

Conference/SMS/WhatsApp messages. TheBranches are being given a list of operative/in-operative accounts for closure wherein no clear cutinstructions/plan of action is spelt out to the Branchesand which is very vague, ambiguous.

Sudden closure of accounts based on oralinstructions by the Operating Staff may attractwrath of the customers who may approachvarious customer redressal forums viz.,Consumer Protection Forum, BankingOmbudsman etc., which will badly damage the

KYC COMPLIANCE - ORAL INSTRUCTIONS TO BRANCHESTO CLOSE ACCOUNTS

image of the Bank. Apart from that, our ownofficers are at grave risk of being charge sheetedfor acting on oral instructions. Already manycustomers have lodged complaints against theBranch/Operating Staff for closing such accounts andit may be on the rise in the days to come as manybranches have resorted to closure of such accountsbased on oral instructions from the top executives.

Federation had taken up the matter with the Chairmanthat whenever any instructions are to be passed on tooperating level officers they have to be in writinginstructions and not oral, in order to obviate thepossibility of complications arising at later date.

ADDITIONAL LEAVE TO OFFICERS SUFFERING FROM CANCER

ore than 60 members from different moduleshad assembled to participate in the Program

held at Mumbai, between 17th to 21st July, 2017designed by NATURE covering the various majorsubjects of the leadership development as well as theDisciplinary Workshop for the benefit of the office-bearers of the Circle Association. The programmewas organized Com.Anil Nare, President andCom.Ramkumar Sabapathy, General Secretary,SBIOA, Mumbai Circle.

Com. Shantha Raju, the former General Secretaryof the Confederation and the Federation, Com.

127TH TRAINING PROGRAMME OF NATURE

Shyam Sundar Rao, former Dy.General Secretary ofthe Federation and President of SBIOA(K) along withseveral others from the Circle Association werepresent on the occasion. Shri. Satyanarayana Rao,Dy.General Manager and Circle Vigilance Officer, wasthe chief guest on the occasion.

The members of the faculty who were entrusted withthe responsibility of handling various sessionsincluded senior comrades such as Com. Y.Sudarshan, General Secretary, AISBOF,Com.G.D.Nadaf, the former General Secretary of the

Nature

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OUR LIFE IS WHAT OUR THOUGHTS MAKE IT 7 Officers' Cause, August - 2017

Federation and Confederation, Com.G.Muthuswamy,the former Senior Vice-President of the Federationand also General Secretary of SBIOA(K) apart fromCom.Shantha Raju, former General Secretary of theFederation and Confederation, Com. Shyam SundarRao, the former Dy.General Secretary, and alsoPresident of SBIOA(K). Com. Balaji, Vice President,SBIOA, Chennai Circle also handled a session as afaculty of Nature in his own eloquent style, whichwas well received by the participants.

Com.Ramkumar Sabapathy, the Joint General

Secretary of the Federation and also the GeneralSecretary of Mumbai Circle Association took a fewsessions as a part of the faculty of NATURE andprovided an excellent support for the successfulconduct of the program.

Com.D.T.Franco Rajender Dev, the President of theFederation and also the General Secretary of theConfederation was also present during thevaledictory function held on 21st July, 2017 andaddressed the participants covering the variousissues concerning the bank.

From the Text of AIBOC Circular No. 2017/41 dt.24.7.2017.

The two day National Youth Convention, the first ofits kind, is being organized by the Confederationwith the primary focus of raising awareness amongyoung officers about the need to stay consolidated,united and to make them aware of the socio-economic-political scenario of the country. This would

NATIONAL YOUTH CONVENTION IN KOLKATAON 26TH & 27TH AUGUST

be an ideal platform to exhibit their potentialleadership qualities and showcase their talents invarious spheres in front of the central leadership.There is a disconnect between the youth and thesenior leaders in most of the organisations, andalso a myth that the youth are reluctant to join TradeUnion activities.

A Facebook page has been created for the eventhttp://www.facebook.com/groups/nyc17.

BI had recently launched a dedicated portal‘SBI Realty’ that will help home buyers to

choose flats from its 3,000 approved projectsacross the country.

‘State Bank of India has taken another steptowards customers’ convenience by launching ‘SBIReality’ – a one stop integrated websitewww.sbirealty.in for home buyers,” according tobanking source.

SBI Realty will help customers choose their dreamhome from 3,000 SBI – approved projects spread

across 13 States and Union Territories covering30 cities.

At present, there are 9.5 lakh home unitsavailable on the website. Customers can comparecurrent and past trends of prices for theproperties in various localities in the city.

The portal will assist customers in calculatingappropriate loan amount that a customer shouldborrow based on the income and credit profile.

Source: Business Line date:-19.7.17

SBI LAUNCHES REALTY PORTAL FOR HOME BUYERS

ECOSYSTEM NOT READY FOR INSOLVENCY LAW:SBI

he “Ecosystem” for rapid dispute resolutionunder the Insolvency and Bankruptcy Code is

not ready yet, said Chairman, State Bank of Indiarecently, adding that the bank is not “rushing” tosettle its stressed accounts under the new law.

Banks have been asking for a judicial framework forthe “orderly resolution” of stressed assets. The

sector has got the law it wanted, she said at a pressconference in Kolkatta, on 11th July 2017 butimplementation of the new code will take time.

By ecosystem, the Chairman meant that bencheshave to be created by the National Company LawTribunal (NCLT) to deal with dispute resolution. “Next,you have to create information utility, which has still

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LET US BUILD A STRONG AND SELF RELIANT INDIA

Officers' Cause,August - 2017 9

not come,” said, the Chairman referring to thecreation of a template to deal with nuances suchas covenants set for lending and the securitiesavailable for settlement. Also, the country needsmore resolution professionals, who, under the newcode, are handed control of insolvent companiesuntil a restructuring plan is finalized, according tothe Chairman. These professionals need to cleara test, get certified and register themselves withNCLT. “The ecosystem has begun to be created –(it) has been created to an extent but not fully(ready

yet).” She said.

On 10th July 2017, SBI filed at the NCLT’s Kolkattabench its application for the appointment of an interimresolution professional to take control of assets andoperations of Electrosteel Steels Ltd, a defaulter, whichowes it Rs.1,404 crore. The firm didn’t oppose theapplication and if a resolution professional isappointed, its board will be superseded.

Source: Mint- 12.7.17

There is no law which governs compassionateappointment. The Service Rules or Agreementsbetween employers and workmen or the unionsregulate compassionate appointment.

In some organisations it has been noticed thatemployee die or get missing just 1 to 2 yearsbefore the retirement. Why such employees dieor get missed just 1 to 2 years before retirementis a million dollar question. On 20th April 2017 aDeputy General Manager of a Premier PSU metme in my office and we were discussing aboutcompassionate appointment. He narrated anincident of 5 years back wherein an employeewho was left with 3 years of service opted forvoluntary retirement but after one week herequested withdrawal of the application. Whenthe matter was enquired into it was revealed thathe was beaten up mercilessly by his son and son-in-law for his having opted for VRS. If he availsVRS he will have to vacate the quartersimmediately. The son-in-law was staying in thequarters with his wife and children. Anotherdimension being that if he takes VRS his son

THE METAPHYSICS OF COMPASSIONATE APPOINTMENT

will not get compassionate appointment. Theworker will die in the next two years and his sonwill’ get compassionate appointment.

Now, the issue before us being that “when a persondies one or two years before his/her normalretirement can his son or daughter claimcompassionate appointment?”

We are aware that compassionate appointment isprovided to an eligible family member to tide overthe economic crisis due to the death of the solebread winner of the family. But if the bread winnerhas worked for 35 to 38 years and dies before 2years of his retirement, in my view, there would beno economic crisis at all. The family of the deceasedemployee will get gratuity, insurance claim andpension and this is enough to tide over the economiccrisis. In my considered and well thought out viewswards of such deceased employees should not beoffered compassionate appointments as gifts orbounties at the cost of the organisation. In the year1999, such a case came up before the Hon’bleSupreme Court. Let us discuss the case-law.

THE CASE-LAW:WEST BENGAL STATE ELECTRICITY BOARD

V.SAMIR K. SARKAR

[(1999) 7 SCC 672 = AIR 1999 SC 3415]DoJ : 17 SEPTEMBER, 1999

FACTS OF THE CASE:

The father one Shri Samir Kumar Sarkar wasan employee under the West Bengal StateElectricity Board and he died on 29th November1996 at the age of 56 years 10 months and 15

days, which was within two years from thescheduled date of his retirement onsuperannuation. When the respondent applied foran employment on compassionate ground, theBoard rejected his prayer on the ground that underthe Rules in question dealing with compassionate

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9 Officers' Cause, August - 2017

appointments, no appointment can be given if theemployee dies within two years from thescheduled date of retirement on superannuation.The respondent, therefore, filed a writ petitionand the learned Single Judge in view of the Rules,dismissed the same. The respondent went inappeal in the High Court. The Division Bench ofthe High Court came to the conclusion thatprovision disentitling appointment oncompassionate ground if the employees dieswithin two years from the date of superannuationonly in respect of clauses (iii), (iv) and (v) andnot in case of clauses (i) and (ii) is discriminatoryand violative of Article 14. Therefore, the HighCourt quashed that part of the order and directedconsideration of the case of respondent forcompassionate appointment. It is not disputedthat the death of the father of the respondentwas on account of illness and it was within twoyears from the date of superannuation.

SLP TO THE SUPREME COURT:

Having felt aggrieved by the judgment of theDivision Bench, West Bengal State ElectricityBoard filed a special leave petition in the Hon’bleSupreme Court, which on grant of special leave,became Civil Appeal assailing the order of theHigh Court.

The Senior Counsel appearing for the appellantscontended as follows:

(i) that the concept of compassionateappointment is itself a discretionary one.

(ii) that there is no statutory rule governingsuch appointments, conferring anenforceable right on the LRs of thedeceased employee

(iii) that the idea to give such compassionateappointment is that the children of theemployee who dies in harness may notbe destitut on the road and can have adecent living.

(iv) that to achieve that objective, severalguidelines/criteria are fixed. The reasonwhy the embargo in question does notapply to clauses (i) and (ii) but apply to

clauses (iii), (iv) and (v) is for an avowedpurpose in as much as in clause (i) and (ii),the death having occurred due to accidentarising out of and in course of employmentand total disablement due to accident incourse of employment whereas underclauses (iii), (iv) and (v), the death is notin any way connected with the employmentand, therefore, there is a reasonable basisfor the classification in question and theHigh Court was not justified in coming tothe conclusion that such classification isdiscriminatory.

REFERENCE TO THE OFFICE ORDER ISSUEDBY WBSEB:

In order to appreciate the contention raised byMr. V.R. Reddy, learned Senior Counsel for theappellants, the relevant office order is quotedherein below in extenso:

The Board is pleased to make provision forconsideration for employment of a dependent ofdeceased employee in the following circumstancesand subject to condition as mentionedhereunder:—

(i) In case of death of an employee due toaccident arising out of and in course ofemployment;

(ii) Employees rendered totally disabled dueto an accident arising out of an in courseof employment;

(iii) Employees dying in harness;

(iv) Employees reported missing subject toobservance of formalities as prescribed bythe Board;

(v) Employees declared lunatic by appropriateauthority.

No employment would however, be considered inthe following circumstances:

(a) Where the death under clause (iii) aboveor the incident antler clause (iv) or thedeclaration under clause (v) above takes

NEVER BEND BEFORE THE INSOLENT MIGHT

Officers' Cause, August - 2017 10

place in the preceding two years from thescheduled date of retirement onsuperannuation of the concernedemployees.

(b) Where a dependent of the deceased,affected employee is already inemployment’ of the Board irrespective ofthe date of securing such employment.

APPRECIATION OF FACTS:

An analysis of the different clauses providing forcompassionate appointment in case or death ofthe employee would indicate that clauses (i), (ii)deal with death arising out of and in course ofemployment or total disablement arising out of andin course of employment whereas clauses (iii) and(iv) have no relationship with the employment inquestion. In that view of the matter, the Hon’bleApex Court found sufficient force in contention ofMr. V.R. Reddy, learned Senior Counsel appearingfor the appellants that there is a reasonableclassification and consequently the embargo thatno employment would be considered when criteriaunder clauses (iii), (iv) and (v) are satisfied, if suchcriteria happens to be within two years from thescheduled date of retirement on superannuation,cannot be held to be discriminatory. The HighCourt, therefore, was totally in error to hold thatthe embargo is violative of Article 14 of theConstitution.

THE VERDICT:

1. The Judgment and order of the High Courtwas set aside

We, accordingly, set Aside the said conclusion ofthe High Court, and

2. It was held that the embargo contained inclause (a) is valid

3. On the admitted position that the deathof the father of the respondent occurredon 29th November 1996 which is withintwo years preceding to the date ofsuperannuation, the respondent will notbe entitled to a compassionateappointment under the office order dated15th March 1993 which deals with thecriteria for such appointment. . .

4. Resultantly, the appeal filed by WestBengal State Electricity Board wasallowed.

Ajaya Kumar SamantarayDeputy Chief Labour Commissioner (Central),

Dhanbad—826003

Source: FLR 2017 (153)

[2017 (152) FLR 904](MADHYA PRADESH HIGH COURT)

SUJOY PAUL, J.Writ Petition No. 13619 of 2011

January 4, 2017Between,

Smt. BABITA SAHUand

BANK OF BARODA and others

Compassionate Appointment—Vide Policy Circular dated 12.11.2007, the respondents decided to providethe benefit of ex-gratia amount in lieu of compassionate appointment to dependents of deceasedemployee—Petitioner is unable to show as to how the policy in question is arbitrary or unconstitutional innatural—Hence the policy, circular is not arbitrary or capricious in nature—Petitioner is not entitled tocompassionate appointment—Respondent is directed to consider the claim and benefit of ex-gratia to thepetitioner. [Paras 6 and 8]

Judicial Verdict

TIME AND TIDE WAIT FOR NONE

11 Officers' Cause, August - 2017

JUDGMENT

SUJOY PAUL, J-This writ petition filed underArticle 226 of the Constitution of India, challengesthe circular dated 12.11.2007, whereby therespondents have decided to provide the benefitof ex-gratia amount in lieu of compassionateappointment to the dependents of deceasedemployee.

2. Mr. Bajpai, learned Counsel for the petitioneradvanced singular contention. He submits thatpetitioner’s husband Late Ramlal Sahu, died inharness on 29.8.2007. As per the policy dated12.11,2007, the respondents have offeredex-gratia amount to the petitioner, whereas it islegal, constitutional and fundamental right of thepetitioner to get her case considered forcompassionate appointment. It is urged thatimpugned circular dated 12.11.2007 is arbitraryand ex-gratia amount is not sufficient to dischargethe financial obligation. The earlier schemewhereby compassionate appointment was given,was more beneficial.

3. Prayer is opposed by Mr. Mainderetta, learnedCounsel for the petitioner by contending thatpetitioner does not have any such right ofconsideration for compassionate appointment. Hesubmits that the necessary benefits were workedout as per the scheme in vogue and petitionercan take the benefits of the same.

4. No other point has been pressed by the learnedCounsel for the parties.

5. I have heard the parties at length and perusedthe record.

6. This is settled legal position that thecompassionate appointment is not a regularsource or recruitment. It is an exception to generalrule, that recruitment to public services shouldbe on the basis of merits, by open invitation,providing equal opportunity to eligible persons toparticipate in selection. I am unable to hold thatpetitioner has any legal, vested, fundamental orconstitutional right to get her case considered forcompassionate appointment. The question of

consideration of the petitioner for compassionateappointment depends on the policy which isapplicable. No benefits can be claimed on the basisof an abolished scheme. In State Bank of Indiaand another v. Rajkumar the Apex Court has takenthe said view,.

7. In MGB Gramin Bank v. Chakrawarti Singh itis further held that the right of consideration forbenefits can be claimed as per the policy in vogue.The scheme which is in force on the date ofconsideration or the employee is applicable. Thesame view is taken by the full bench of this Courtin the case reported in Bank of Maharashtra andanother v. Manoj Kumar Deharia and another. Thisis recently followed by this Court in Pinki Yadavv. State of M.P. and others. In Chakrawarti Singh(supra), the Apex Court followed the principleslaid down in the case of Rajkumar (supra) andheld that compassionate appointment cannot beclaimed as a matter of right nor an applicantbecomes entitled automatically for appointment.The consideration and the benefits arising theretoare based on the scheme which is applicable atthe relevant time.

8. The petitioner is unable to show as to how thepolicy in question is arbitrary or unconstitutionalin nature. Hence, lam unable to hold that the policywhich provides ex-gratia benefits is arbitrary orcapricious in nature. Hence, no interference isrequired on the said policy.

9. During the course of arguments learned Counselfor the parties contended that because of pendencyof this petition, the petitioner did not acceptex-gratia benefits flowing from the scheme inquestion. In this view of the matter, I am onlyinclined to direct that if petitioner prefers anapplication seeking ex-gratia benefits before therespondents, the respondents shall consider thesaid claim and extend the necessary benefits tothe petitioner within 60 days from the date ofcommunication of this order.

10. With the aforesaid observation, this petitionstands disposed of.

Petition Disposed Of.

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DEARNESS ALLOWANCE

The Index Numbers for the quarter ended June, 2017 are as under

MONTH INDEX AS PER CONVERSION INDEX AS PER 2001 SERIES FACTOR 1960 SERIES

April 2017 277 4.63 x 4.93 6322.77

May 2017 278 4.63 x 4.93 6345.60

June 2017 280 4.63 x 4.93 6391.25

Total 19059.62

Average = 19059.62/3 6353.20

Difference in excess of 4440 points 1913.20D.A.paid for the previous quarter on (i.e. 456x4) 1824. 00Difference 89.20Increase in number of Slabs = 89.20/4 22

Accordingly, Dearness Allowance is payable to Officers on 478 (i.e. 456 +22 ) slabs with effect from01-08-2017 as against 456 slabs for the previous quarter. The rates worked out are as per the industrylevel scales upto Scale VII including SBI.