V.T. KHANZODE & ORS. versus RESERVE BANK OF INDIA & ANR.

V.T. KHANZODE & ORS. versus RESERVE BANK OF INDIA & ANR.

The administrative circulars and the combined seniority list are not violative of Articles 14 and 16 of the Constitution, as the creation of combined seniority and inter-group mobility is a matter of policy justified by functional, administrative, and historical necessity and does not amount to arbitrariness or discrimination. The Central Board of Directors has the statutory power under Sections 7(2) and 58(1) of the Reserve Bank of India Act to issue such directions and regulations. Retrospective effect given to the scheme is valid as a means to correct imbalance and anomalies arising from prior compartmentalised seniority systems.

Parties
Petitioners: V.T. Khanzode & Ors.; Respondents: Reserve Bank of India & Anr.
Jurisdiction
India
Judgment Date
05 March 1982
Procedural Posture
Writ Petition Under Article 32 / Final Decision
Outcome
Petitions dismissed
Legal Topics
Seniority and Promotion in Public Sector, Constitutionality of Administrative Circulars, Retrospective Operation of Seniority Schemes
Constitutional Law Administrative Law Labour & Employment Law Seniority and Promotion in Public Sector Constitutionality of Administrative Circulars Retrospective Operation of Seniority Schemes

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Parties

V.T. Khanzode & Ors.

Petitioners

Reserve Bank of India & Anr.

Respondents

Procedural Posture

Writ Petition Under Article 32 / Final Decision

Legal Issues

  1. 1 Whether the draft combined seniority list fixed by Administrative Circular No. 8 dated January 7, 1978, and Office Order No. 679 dated April 27, 1978 by the Reserve Bank, violates Articles 14 and 16 of the Constitution of India.
  2. 2 Scope of powers under Section 58(1) & (2) of the Reserve Bank of India Act, 1934 regarding making regulations and issuing administrative circulars related to service conditions.
  3. 3 Validity of the retrospective operation of the combined seniority scheme.

Ratio Decidendi

The administrative circulars and the combined seniority list are not violative of Articles 14 and 16 of the Constitution, as the creation of combined seniority and inter-group mobility is a matter of policy justified by functional, administrative, and historical necessity and does not amount to arbitrariness or discrimination. The Central Board of Directors has the statutory power under Sections 7(2) and 58(1) of the Reserve Bank of India Act to issue such directions and regulations. Retrospective effect given to the scheme is valid as a means to correct imbalance and anomalies arising from prior compartmentalised seniority systems.

Court Disposition

Petitions dismissed

Orders

  • No order as to costs.