2008 (2) TMI 933 - SC - Indian Laws

Summary

Issues Involved:
1. Legality of the examination process for promotion within the Gramin Bank.
2. Allegations of bias and mala fide against the Chairman of the Gramin Bank.
3. Validity of the inquiry conducted by the State Government.
4. Delay and laches in filing the writ petition.
5. Estoppel due to participation in the examination.

Detailed Analysis:

Legality of the Examination Process for Promotion:
The appellants challenged the examination process for promotion to the posts of Officer Scale I and Officer Scale II in the Gramin Bank, claiming it was conducted improperly. The examination was held on 18.08.2002 by the Institute of Banking Personnel Selection, Mumbai, after approval from the Board of Directors of the Gramin Bank. The High Court found that the written examination was conducted by a reputable body and there was no evidence of any irregularities in the process. The Supreme Court upheld this finding, noting that the appellants had participated in the examination without protest and failed to qualify.

Allegations of Bias and Mala Fide Against the Chairman:
The appellants alleged that the then Chairman, Sri Zameer Hasan, influenced the examination process to benefit his brother and cousin. The High Court dismissed these allegations, stating that the appellants failed to provide sufficient evidence of bias or mala fide. The Supreme Court concurred, emphasizing that the burden of proving mala fide is very heavy and must be supported by specific and convincing evidence. The Court found that the appellants' allegations were vague and unsubstantiated, and there was no proof that the Chairman had manipulated the examination results.

Validity of the Inquiry Conducted by the State Government:
An inquiry was conducted by a committee appointed by the State Government, which reported certain irregularities. However, the High Court noted that the State Government has no authority over the Gramin Bank, which is governed by the Central Government under the Regional Rural Banks Act, 1976. The Supreme Court agreed, stating that the inquiry was ex parte and did not follow due process. The Court also noted that the inquiry report did not point out any specific infirmities in the conduct of the written examination.

Delay and Laches in Filing the Writ Petition:
The Gramin Bank contended that the writ petition was delayed and suffered from laches. The High Court agreed, noting that the appellants had participated in the examination and only challenged the process after failing to qualify. The Supreme Court upheld this view, stating that the appellants were estopped from challenging the examination due to their participation and delay in filing the petition.

Estoppel Due to Participation in the Examination:
The High Court held that the appellants were estopped from challenging the examination as they had participated in it without any protest. The Supreme Court agreed, stating that by participating in the examination, the appellants had accepted its validity and could not later claim it was unfair or biased.

Conclusion:
The Supreme Court dismissed the appeal, upholding the High Court's decision. The Court found no evidence of bias or mala fide against the Chairman and noted that the examination process was conducted fairly by a reputable body. The inquiry by the State Government was deemed invalid, and the appellants were found to be estopped from challenging the examination due to their participation and delay in filing the writ petition. The appeal was dismissed with no order as to costs.