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2023 (6) TMI 1398

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..... seen from the records that on 07.04.2014, Indian Bank's Association took a decision to withdraw the LTC facility covering overseas travel and the same was not preceded by any notice or discussion with the parties. It is also seen that the respondent Bank followed the decision of the Indian Bank's Association by its Circular dated 15.04.2014 and thereafter, instructions came into force with immediate effect. Thus, it is an admitted fact that before issuing such letter and circular, no notice was served on the appellants and no opportunity was provided on them. The learned Judge has observed that the principles of natural justice alone would not be a ground to quash the decisions of the authorities in all cases in a routine manner, wherever there is no notice or opportunity has been provided to a person. This Court is of the considered view that an opportunity would have been given to the appellants 1 and 2 Union representing the Officers, while withdrawing such facility, as the said facility was granted to the officers right from the year 1982 and further, its terms were revised in the year 2007 by way of negotiation, and it was enjoyed by the officers, till 2014. Therefore, .....

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..... ted that the LTC to the Bank Officers is governed by Rule 44(1) of the State Bank of India Officers Service Rules, 1992 contained in Chapter 17, Rules 17.4 and 17.18, permit visit to a foreign country by the officer as part of the LTC facility. The appellants' members working in the respondent Banks are thus availing the foreign travel facility along with their families to visit foreign countries, falling within the Four Year Block Period. On 27.04.2010, the third respondent consisting of the representatives of all Banks and the second appellant herein signed a Bipartite Settlement with effect from 01.11.2007 with regard to various conditions of service, wherein existing terms were revised and the fare eligible under LTC was agreed upon. The officers continued to get the facility of foreign travel being covered by LTC. 2.2. While so, the third respondent vide its letter No. CIR/HR IR/F/2014- 15/9195 dated 07.04.2014 and the first respondent vide its e-Circular bearing No. CDO/P HRD-PM/7/2014-15 dated 15.04.2014 informed that LTC covering overseas travel facility was withdrawn with immediate effect and the officers were not entitled to visit overseas Countries / Centres as part .....

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..... Bank of India. The rules framed under section 43 are not subordinate legislation, which can be framed only under section 50, but are nevertheless statutory in character; and thus, the provisions for LTC on foreign travel have been statutorily provided. Continuing further, the learned senior counsel submitted that the benefit of LTC on foreign travel arose out of bilateral negotiations and agreement between the Appellants and the Respondents at the industry level. It is also submitted that a benefit which has been implemented for nearly 30 years, cannot be unilaterally withdrawn by the respondents, that too, without following the principles of natural justice. According to the learned senior counsel, the principles of natural justice apply even to administrative decisions not governed by statutory law. However, the learned Judge erred in dismissing the writ petition filed by the appellants by the order impugned herein. To substantiate her contentions, the learned senior counsel placed reliance on the various decisions of the Hon'ble Supreme Court. Finally submitting that the undertaking given by the appellants herein before the writ court on 25.11.2014 will not operate against .....

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..... not in consonance with the Statutory Rules in force and accordingly, it cannot have any statutory force. (ii) There was no bipartite agreement or settlement between the parties. The officers of the Bank are permitted to avail reimbursement facility by way of simple instructions. The concessions or facilities extended by way of Administrative Instructions beyond the scope of the rules cannot be construed as an absolute right to the employees. Hence, it cannot be stated that cancellation of benefit of Leave Travel Concession to travel abroad, resulted in infringement of service rights or in violation of service conditions of the officers of the State Bank of India. (iii) The principles of natural justice cannot be adopted in a straitjacket formula, but are to be applied with reference to the facts and circumstances of the case. In the given factual matrix, providing an opportunity is a futile exercise and the officers of the Bank are not prejudiced nor their service rights are violated. The executive actions regarding the foreign affairs should be viewed with greater latitude and the decision being taken by the State Bank of India is pursuant to the Government of India policy, which .....

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..... espondents without affording an opportunity of hearing, could not have taken any administrative decision unilaterally and therefore, the Division Bench of High court was not justified in concluding that under the useless formality theory the rules of natural justice need not have been followed by the respondents . 8.7. In the light of the legal proposition and having regard to the admitted fact that no opportunity was provided to the appellants before withdrawing the overseas facility granted to them, which is in violation of the principles of natural justice, this court is inclined to set aside the letter dated 07.04.2014 and the circular dated 15.04.2014 and remand the matter to the authorities to take a decision afresh, after issuing due notice and providing an opportunity of hearing to the appellants, in accordance with law. 8.8. In such view of the matter, this court is not expressing any opinion on the other two grounds, on the basis of which, the learned Judge passed the order impugned in this appeal. 9. Accordingly the impugned order passed by the learned Judge in the writ petition is set aside and consequently, Circular Letter No. CIR/HR IR/F/2014- 15/9195 dated 07.04.2014 .....

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