Team  SoOLEGAL

Bank Employee: No Right to get involved in the decision making of Salary Fixation: Supreme Court

Team SoOLEGAL 13 Feb 2019 12:00pm

Bank Employee: No Right to get involved in the decision making of Salary Fixation: Supreme Court


In the case of The SBI and Ors v. Ravindra Nath and Ors., the Supreme Court of India gave it’s judgment on whether a bank employee can actively take part in decision making process of fixation of salary or not. The bench comprised of Justice Uday Umesh Lalit and Justice Hemant Gupta. 

In the present case, the petitioner, an SBI employee, had challenged SBI’s process of refixing his salary. Originally, the case was filed in Bombay High Court. SBI came to the refixed amount of salary based on the application of the formula given by the Standing Copmmittee. The Bombay High Court opined in favor of the petitioner that  he has no privity to contract with the Standing Committee. Hence, SBI was erroneous in it’s action of re fixation of the petitioner’s salary by reducing it.


The respondent, as a matter of right, filed an appeal in the Hon’ble Supreme Court of India. The appellant contended that a Committee was formed by the Government of India for framing uniform guidelines regarding salaries and other terms applicable to the Officers of Indian Banks which are posted abroad. Much reliance was placed on the Committee’s Report.


The Supreme Court Bench observed that the salary has been fixed in terms of directions of the Government of India, in respect of all Public Sector Banks keeping in view the Cost of Living Index in different countries and making adjustments in the salaries according to the Cost of Living of each country. The Bench also disapproved Bombay High Court’s view regarding Privity of contract and held it as non tenable.

The bench said:

"The respondent-writ petitioner as an Officer of the Bank is bound by the salary structure approved by the Bank for its Officers. The decision of the Standing Committee is a part of the decision-making in respect of salary payable to the employees of the Banks. The employee of a Bank has no right that he should be associated with the decision-making process in respect of the fixation of salary. However, if the question of reasonableness of salary arises, then in exercise of power of judicial review, the Court may examine the decision-making process."


Thus, the Apex Court observed that an employee of a Bank has no lawful right in getting involved with the decision making process for fixation of salary.

The Supreme Court has observed that the employee of a Bank has no right that he should be associated with the decision-making process in respect of the fixation of salary.


Tagged: Supreme court   Bank EmployeeJustice Uday Umesh Lalit   Justice Hemant Gupta.  
Did you find this write up useful? YES 0 NO 0
Send
Featured Members view all

New Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.