STATE BANK OF INDIA EMPLOYEES V. UNION OF INDIA

WP/29702/2017

AI Insights

The case involves the State Bank of India Employees' Union (SBM) seeking judicial intervention to compel the State Bank of India (SBI) to continue a check-off facility that allows the automatic deduction of union subscription fees from employees' salaries. This facility was previously provided but was not continued following the merger of SBM with SBI as per a Gazette Notification dated 22/02/2017. The union's representation to SBI on 04/04/2017 to continue this facility was not responded to, prompting the union to file a writ petition under Articles 226 and 227 of the Constitution of India. The court heard arguments referencing the Payment of Wages Act, 1936, and the Industrial Disputes Act, 1947, but ultimately decided that the matter was a policy decision for SBI and not suitable for judicial mandamus at this stage.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 739160 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-07-2017
• Assessment Year: misc
• Laws Referred To: Constitution of India, Payment of Wages Act, 1936, Industrial Disputes Act, 1947, Trade Unions Act, 1926
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: NATARAJA BALLAL
• Keywords: Policy Decision; Writ of Mandamus; Check Off Facility; Union Representation
• Section: 18; 226; 227; 7(2)(kkk)

Judgement Text

" 1/7 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 24th DAY OF JULY 2017 BEFORE THE HON'BLE Dr.JUSTICE VINEET KOTHARI WRIT PETITION No.29702/2017 (GM-RES) BETWEEN: STATE BANK OF INDIA EMPLOYEES’ UNION (SBM) REG. CENTRAL OFFICE, P.B. No.9991, 644/645 AVENUE ROAD, BENGALURU-560 009 REP. BY ITS SECRETARY MILIND KATTI AGED ABOUT 58 YEARS …PETITIONER (BY SRI. NATARAJA BALLAL, ADV.,) AND: 1. UNION OF INDIA MINISTRY OF FINANCE GOVERNMENT OF INDIA NEW DELHI-1 REP. BY ITS SECRETARY. 2. CHAIRMAN & MANAGING DIRECTOR STATE BANK OF INDIA SBI CORPORATE OFFICE STATE BANK BHAWAN 16TH FLOOR, MADAM CAMA ROAD MUMBAI-400 021. 3. CHIEF GENERAL MANAGER STATE BANK OF INDIA LOCAL HEAD OFFICE ST. MARK’S ROAD BENGALURU-560 009. …RESPONDENTS Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 2/7 THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT No.3 TO CONSIDER THE REPRESENTATION OF THE PETITIONER DATED 04/04/2017 FORTHWITH (ANNEXURE-G) AND ISSUE A WRIT OF MANDAMUS TO EXTEND THE FACILITY OF CHECK OFF TO THE PETITIONER AS PROVIDED EARLIER BY IMPLEMENTING THE ORDER DATED 22/02/2017 & ETC., THIS W.P. COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:- ORDER Mr. Nataraja Ballal, Adv. for Petitioner 1. The petitioner-SBI Employees’ Union (SBM) has approached this Court with the following prayers:- “(i) Issue a writ of MANDAMUS directing the Respondent No.3 to consider the representation of the petitioner dated 04.04.2017 forthwith (Annexure-G) (ii) Issue a writ of MANDAMUS to extend the facility of check off to the petitioner as provided earlier by implementing the order dated 22/02/2017. (iii) Award costs of this proceedings (iv) Pass such other order or orders as this Hon’ble Court deems fit in the facts and Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 3/7 circumstances of the case in the interest of justice and equity”. 2. The said petitioner-Employees’ Union has already approached the Respondent-SBI for continuing the said facility of check off namely, facility to collect the subscription fees from the members of the petitioner- Employees’ Union who are also employees of the SBM which stands merged with the SBI as per Gazette Notification Annexure-D dated 22.02.2017 and deduct the said subscription or fees from their respective wages/salary and make over this amount to the petitioner-Employees’ Union. The said representation made by the petitioner-Employees’ Union on 04.04.2017 has not so far been responded by the Respondent-SBI. The same was made to the Chief General Manager of SBI, Bangalore. 3. The learned counsel for the petitioner drawing the attention of the Court towards the provisions Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 4/7 contained in Section 7(2) (kkk) of the Payment of Wages Act, 1936, r/w Section 18 of the Industrial Disputes Act, 1947 r/w clause (11) of the aforesaid Gazette Notification dated 22.07.2017, has submitted that the Respondent-SBI is bound to continue and provide check off facility to the petitioner-Employees’ Union. 4. The said provisions and clause-11 of the said Gazette Notification dated 22.02.2017 provides the various terms of the merger of various such Banks including the SBM with SBI are quoted below for ready reference:- “11. The Provident Fund or the Gratuity Fund or the Pension Fund or any other funds of Transferor Bank and any other bodies created, established or constituted, as the case may be, for the officers or other employees shall continue with the Transferee Bankk and any income tax or other tax exemption granted to the Provident Fund or the Gratuity Fund or the Pension Fund or any other funds, if any, shall continue to be applied to the Transferee Bank”. Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 5/7 Section 18 of the Industrial Disputes Act, 1947, reads as under:- “18. Persons on whom settlements and awards are binding.- (1) A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement”. Section 7(2)kkk of the Payment of Wages Act, 1936, reads as under:- “7.Deductions which may be made from wages.- (2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:- (kkk) deductions made, with the written authorization of the employed person, for payment of the fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926); Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 6/7 5. Having heard the learned counsel for the petitioner, this Court is satisfied that it is not only premature for the petitioner-Employees’ Union to approach this Court by way of present writ petition under Article 226 of the Constitution of India, since the representation made by the petitioner-Employees’ Union to the SBI is still pending but this is also a matter of policy decision to be taken by the Respondent-SBI, for which their decision has to be awaited. This Court also does not find any vested legal right on the basis of which a mandamus direction is sought by the petitioner-Employees’ Union for mandating the Respondent-SBI to provide such check off facility to the petitioner-Employees’ Union. 6. It is for the Respondent-SBI to take a policy decision in the matter and for which the petitioner- Employees’ Union has already approached them for the said purpose, this Court does not consider it Date of Order 24-07-2017 W.P.No.29702/2017 State Bank of India Employees’ Union (SBM) Reg. Vs. Union of India and Others. 7/7 appropriate to issue any such mandamus direction at this stage touching the merits of the case in the present writ petition. 7. The petition is accordingly disposed of with liberty and direction to the petitioner-Employees’ Union to pursue its representation before the Respondent-SBI only, who may decide the same in accordance with law. No costs. Copy of this order be sent to the Respondents forthwith. Sd/- JUDGE Srl. "