Gauhati High Court
All Assam Apex Bank Workers Union vs The Assam Co-Operative Apex Bank Ltd. ... on 28 November, 2019
Author: Manash Ranjan Pathak
Bench: Manash Ranjan Pathak
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GAHC010018402019
THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : WP(C) 588/2019
1:ALL ASSAM APEX BANK WORKERS UNION
REP. BY ITS GENERAL SECRETARY, SHRI DWIJENDRA NATH DEKA, AGED
ABOUT 51 YEARS, S/O. LATE MAHENDRA NATH DEKA, R/O BAGHADOBA,
P.S. GORESWAR, DISTRICT BAKSA, ASSAM- 781372.
VERSUS
1:THE ASSAM CO-OPERATIVE APEX BANK LTD. AND ANR.
REP. BY ITS MANAGING DIRECTOR, PANBAZAR, GUWAHATI-1, KAMRUP,
ASSAM.
2:THE MANAGING DIRECTOR
ASSAM CO-OPERATIVE APEX BANK LTD.
PANBAZAR GUWAHATI-1 DISTRICT KAMRUP
ASSAM
Advocate for the Petitioner : MR B D DAS
Advocate for the Respondent : SC, APEX BANK
BEFORE
HON'BLE MR. JUSTICE MANASH RANJAN PATHAK
ORDER
28-11-2019 Heard Mr. B. D. Das, learned Senior counsel assisted by Ms. B. B. Hussain, learned counsel for the petitioners Union and Mr. D. Saikia, learned Senior counsel assisted by Mr. P. Nayak, learned counsel for the respondent Assam Cooperative Apex Bank Ltd.
By staff Circular No.04/2018 dated 29.01.2018, the respondent Apex Bank approved Page No.# 2/3 revision of Pay Scales and other allowances to the employees of the Bank giving effect from 01.01.2016. Clause 6 of the said Circular dated 29.01.2018 relates to Variable Dearness Allowance, which reads as follows:--
"6) Variable Dearness Allowance-- The grant of Variable Dearness Allowance shall be decided periodically by the Board of Directors of the Bank in accordance with the policy followed by the Government of Assam as far as practicable. Accordingly, the current rate 5% (five percent) of Variable Dearness Allowance admissible to the employees of the State Govt. shall be applicable for the employees of the Bank until further revision. However, further revision of the Dearness Allowance will be decided the Board periodically based on changes in consumer price index.
Variable Dearness Allowance will be calculated on the Basic Pay drawn by an employee."
Further Clause (8) of said Circular dated 29.01.2018 of the Bank relates to House Rent Allowance, which reads as follows:--
House Rent Allowance "(a) The revised rate of House Rent Allowance for the employees will be declared as and when the State Govt. take a final decision on revision of house rent allowance for their employees.
(b) Till a decision regarding revised House Rent Allowance is finalized by the State Govt. for their employees of the Bank will continue to draw the existing amount of house rent allowance drawn by them."
The contention of the petitioners Union is that the Bank is required to enhance their VDA as well as HRA as finalized by the State Government to its employees. Though the State Government by its various Notifications have enhanced the VDA upto 12% as well as House Rent Allowance for its employees (i) 10% of pay (including PBP+GP) for the employees posted in Guwahati Metro area, (ii) 08% of pay (including PBP+GP) for the employees posted in the districts and sub-divisional head quarters and (iii) 07% of pay (including PBP+GP) for other places of posting vide OM dated 10.07.2018 pertaining to House Rent Allowance of the State Government giving effect from 01.04.2016. Hence this writ petition by the petitioners Union for a direction to the respondents to give its employees such benefits equivalent to its counterparts in the State Government pertaining to VDA and House Rent.
Mr. Saikia, learned Senior counsel for the respondent Bank clarified that such decision of enhancing the VDA and HRA to the employees of the Bank was taken by its Board to give such benefit as far as practicable and presently the Bank is running at loss and inspite of that by the said Staff Circular dated 29.01.2018 the Bank had given 5% VDA to its employees and not that it is not giving any such benefit to its employees.
Page No.# 3/3 As per the said Staff Circular dated 29.01.2018 such decision for granting enhancement VDA or HRA needs to be decided by the Bank.
Mr. Saikia, representing the Bank from its affidavit submitted that the Bank is awaiting results for the financial year 2018-19 and that a decision in that regard shall be taken upon receipt of the said result and that it is one of the reasons for not revising HRA of the employees of the Bank.
Mr. Saikia further submits that the Board of the Bank may take such decision on receipt of the result of Banks financial year 2018-19 which is awaited.
Mr. Das, learned Senior counsel for the petitioners Union submits that Board should take a decision at an early date on receipt of such report for the financial year 2018-19.
Mr. Das also submits that the respondent Bank enhanced such VDA and HRA upto 2010 when the Bank was under loss.
Considering the entire aspect of the matter this writ petition is disposed of directing the Board of the respondent Bank to take a decision on or before 10.04.2020 in terms of the Staff Circular No. 04/2018 dated 29.01.2018 pertaining to revision of salaries including the enhancement of VDA and HRA as provided therein.
Petitioners Association shall submit a certified copy of this order before the Managing Director of the Assam Cooperative Apex Bank Ltd and shall obtain necessary acknowledgement in that regard.
With the above observation and direction, this writ petition stands disposed of.
JUDGE Comparing Assistant