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CASE NO.: Transfer Case (civil)  79 of 2005

PETITIONER: A.P.BANK DEPOSIT COLLECTORS ASSOCIATION & ANR.

RESPONDENT: STATE BANK OF INDIA & ANR.

DATE OF JUDGMENT: 28/02/2008

BENCH: H.K. SEMA & MARKANDEY KATJU

JUDGMENT: JUDGMENT

O R D E R WITH  TRANSFERRED CASE(C)NOS.85/2005, 80/2006, 95/2006, 108/2006, 109/2006, 110/2006, 111/2006, 112/2006, 156/2006, 80/2005, 81/2005, 82/2005, 157/2006, 13/2007, 81/2006 AND I.A.NOS. 15-41 IN T.P.(C) NOS.645-658/2004  

TRANSFERRED CASE(C)NOS.79/2005,85/2005,80/2006,95/2006,108/2006, 109/2006, 110/2006, 111/2006, 112/2006, 156/2006, 80/2005, 81/2005, 82/2005, 157/2006, 13/2007, 81/2006         All these transferred cases arises out of the Circular dated 4.6.2001, issued by the   State Bank of India(herein after the Bank), discontinuing with the Janata Deposit  Scheme.  Since, the common facts and law arises in all these transferred cases we  propose to dispose of the cases with this common order. For the sake of brevity we  are taking facts from Transferred Case (C)No.110/2006.         Sometime in 1971 a policy decision has been taken by introducing Janata Deposit  Scheme.  It is stated as      the Scheme is not  viable and, therefore, by  the      impugned Circular dated 4.6.2001 the Scheme was abandoned/discontinued. Several  writ petitions have been filed in the different High Courts in the country challenging  the Bank’s decision dated 4.6.2001 discontinuing with the Scheme principally  praying for a writ of mandamus for a direction to continue the Scheme and writ of  certiorari to quash Bank’s policy decision dated 4.6.2001. To avoid the multiplicity  of proceedings and conflicting decisions the writ petitions have been transferred to  this Court and it is how they are placed before this Court for disposal.         We have heard the parties at length. It is undisputed that the Janata Deposit  Scheme was introduced in 1971 based on the policy decision of the Bank. It is also  not disputed that by another Bank’s policy decision by  Circular dated 4.6.2001 and  similar other circulars were issued in other Circles discontinuing with the Scheme.   Since the Bank’s Circular dated 4.6.2001 is relevant for the purpose of disposed of  all these transferred cases the same is extracted in extenso : \023            STATE BANK OF INDIA         CIRCULAR MEMO NO.CFO/BOID/54 OF 2001 TO                              FROM THE DY.GENERAL MANAGERS/                BANKING OPERATORS ASST. GENERAL MANAGERS/          DEPTT.  CHIEF MANAGER/BRANCH            STATE BANK OF INDIA MANAGERS OF ALL BRANCHES/               LOCAL HEAD  OFFICE, OFFICES IN LUCKNOW CIRCLE               LUCKNOW

                               DATED: 4.6.2001 PERSONAL BANKING SEGMENT JANATA DEPOSIT SCHEME

EXTANT INSTRUCTIONS

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The above scheme was introduced in 1971 with a view to inculcating savings  habit among the low income group and to mobilize small savings at their  doorsteps, with  the passage of time the scheme has lost its popularity  specially in view of the changed Banking scenario in the country.  The scheme  is not also economically viable and has contributed to a number of frauds. REVISED INSTRUCTIONS In view of the above, it has been decided to discontinue the scheme with  effect from 1st July, 2001 with the provision that the existing accounts will be  allowed to run till their maturity.  Accordingly, no new account will be  opened or additional deposit received in the existing accounts from 1st July,  2001. 2.      Personnel & HRD Department at this office would be separately  advising with regard to the issues related to dispensing with the services of  the Janata Deposit Collectors. 3.      Please ensure accordingly. RATIONALE  Due to non-viability of the scheme

(ALOKE SHAH) FOR Chief General Manager

INDEX :P. Personal Banking Segment-Janata Deposit Scheme        J. Janta Deposit Scheme-Personal Banking Segment\024

       A perusal of the Circular as referred above would clearly show that the Scheme is  not economically viable. The Scheme has also contributed a number of frauds.  In  our  view, having regard to the facts mentioned in the order we do not see any arbitrary  exercise of power by the authority concerned in discontinuing with the Scheme, as  contended by the learned counsel of the petitioners.  Similarly, when  the concerned  authority introduced the Scheme as a policy decision the same authority can  discontinue or abandon the Scheme in accordance with a policy decision of the  concerned authority. It is now well settled principle of law that the Court does not  interfere with the policy decision of the authority concerned unless such decision is  tainted with malafide or arbitrary. As already pointed out the reading of a policy  decision in a Circular dated 4.6.2001 we do not see any arbitrariness or taint of  malafide.         Learned counsel has referred to the decision of this Court rendered in Indian  Banks Association vs. Workmen of Syndicate Bank and others, 2001(3)SCC 36. In  that case the dispute was raised that the employees  working in the Janata Deposit  Scheme should be absorbed as regular workmen. While this Court said that  employees in Janata Fixed Deposit Scheme were held to be workmen, the direction  for absorption as a regular workman has been rejected. A contention has, therefore,  been raised that since the employees of Janata Deposit Scheme are workmen they are  entitled to retrenchment compensation under Section 25F of Industrial Disputes Act.   This contention, in our opinion, has no substance.  As already noted, the Scheme  itself has been abandoned by way of policy decision and, therefore, we do not see any  infraction of Section 25F of the Industrial Disputes Act.         For the reasons stated above, all these transferred cases are disposed of. The writ  petitions stand dismissed. I.A.NOS. 15-41 IN T.P.(C) NOS.645-658/2004         I.A.Nos.15 to 41, applications for impleadment/ intervention and restoration of  work to deposit collectors, are dismissed.