ANDHRA BANK versus B. SATYANARAYANA AND ORS.

ANDHRA BANK versus B. SATYANARAYANA AND ORS.

Regulation 17 of the Andhra Bank (Officers) Service Regulations, 1982 does not confer unguided, uncanalised, or arbitrary power on the bank in laying down promotion policy as adequate safeguards and conformity with government guidelines exist; requirements for making regulations under Section 19 of the Act are procedural and irrelevant to formulation of promotion policy itself.

Parties
Appellant: Andhra Bank; Respondents: B. Satyanarayana and Ors.
Jurisdiction
India
Judgment Date
12 February 2004
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 31.3.1998 of Andhra Pradesh High Court in Writ Appeal No.1152 of 1988
Outcome
Appeal allowed; impugned judgment of High Court set aside.
Legal Topics
Promotion Policy in Banking Sector, Delegation of Legislative Functions, Guidelines for Promotion, Ultra Vires Challenge
Service Law Banking Law Promotion Policy in Banking Sector Delegation of Legislative Functions Guidelines for Promotion Ultra Vires Challenge

Case Brief

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Parties

Andhra Bank

Appellant

B. Satyanarayana and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 31.3.1998 of Andhra Pradesh High Court in Writ Appeal No.1152 of 1988

Legal Issues

  1. 1 Whether Regulation 17 of the Andhra Bank (Officers) Service Regulations, 1982 confers arbitrary power for promotion policies?
  2. 2 Whether procedure under Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 must be followed for formulating promotion policies?

Ratio Decidendi

Regulation 17 of the Andhra Bank (Officers) Service Regulations, 1982 does not confer unguided, uncanalised, or arbitrary power on the bank in laying down promotion policy as adequate safeguards and conformity with government guidelines exist; requirements for making regulations under Section 19 of the Act are procedural and irrelevant to formulation of promotion policy itself.

Court Disposition

Appeal allowed; impugned judgment of High Court set aside.

Orders

  • Impugned judgment of High Court is set aside.
  • No order as to costs.