MUKUND K. PAI & ORS. versus PUNJAB NATIONAL BANK & ORS

MUKUND K. PAI & ORS. versus PUNJAB NATIONAL BANK & ORS

The IBA Clarification and HRMD circular do not override the 17.02.2014 government guidelines; the Bank's re-fixation applying the IBA Clarification while ignoring the 2014 guidelines was unjustified and, having been carried out without affording the appellants an opportunity to be heard (thereby causing civil consequences), is set aside; the Bank is directed to re-fix pay afresh in accordance with the 2014 guidelines and recoveries/refunds linked to the re-fixation stand quashed.

Parties
Appellants: Mukund K. Pai & Ors.; Respondents: Punjab National Bank & Ors.
Jurisdiction
India
Judgment Date
30 July 2025
Procedural Posture
Civil Appeal / Appeal to Supreme Court From High Court Judgment (writ Appeal)
Outcome
Appeal allowed
Legal Topics
Pay Fixation of Ex Servicemen, Re Employment, Natural Justice, Government Guidelines Vs Association Circulars
Service Law Administrative Law Pay Fixation of Ex Servicemen Re Employment Natural Justice Government Guidelines Vs Association Circulars

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Parties

Mukund K. Pai & Ors.

Appellants

Punjab National Bank & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal to Supreme Court From High Court Judgment (writ Appeal)

Legal Issues

  1. 1 Whether IBA Clarification and HRMD Circular can override the 2014 guidelines for pay fixation of ex-servicemen on re-employment
  2. 2 Whether the re-fixation by the Bank pursuant to IBA Clarification was in consonance with the 2014 guidelines and whether the High Court was justified in confirming such re-fixation
  3. 3 If not, in what manner should pay fixation of ex-servicemen on re-employment be made and what reliefs are appropriate

Ratio Decidendi

The IBA Clarification and HRMD circular do not override the 17.02.2014 government guidelines; the Bank's re-fixation applying the IBA Clarification while ignoring the 2014 guidelines was unjustified and, having been carried out without affording the appellants an opportunity to be heard (thereby causing civil consequences), is set aside; the Bank is directed to re-fix pay afresh in accordance with the 2014 guidelines and recoveries/refunds linked to the re-fixation stand quashed.

Court Disposition

Appeal allowed

Orders

  • Writ appeal judgment of High Court Division Bench set aside to extent indicated and Single Judge reliefs in clauses (a) to (c) allowed
  • Bank directed to apply the Guidelines dated 17.02.2014 and re-fix the pay of appellants afresh in accordance with the principles in Clause 2.1(ii)-(iii) and related provisions