During the pendency of the said writ petition, the Board of Directors issued a circular letter dated 22.2.1991, the relevant portion whereof reads as under Keeping in view the prevalent situation, we are informed by the Indian Banks Association vide its letter No.
MAINTENANCE OF VEHICLES OWNED BY OFFICERS Reimbursement of maintenance expenditure for cars and scooters to Chief Officers Managers including in Administrative Controlling Officers, Technical Officers and Credited Officers owned by them will be as under Mopeds Rs.75/ per month Scooters Rs.150/ per month.
The Board of Directors framed a scheme as regards reimbursement of the amount expended by the officers for undertaking their journey by car from their respective residences to the bank and back.
The claim duly companyntersigned by an officer at least one step higher than the officer claiming the reimbursement for the entire month should be submitted only once.
Undertaking of the existing bank in terms of the said Act vested in the New Bank.
Appellant bank is a New Bank within the meaning of the provisions of the said Act.
The said letter was circulated by the Indian bank Association.
A Division Bench of the High Court affirmed the said view of the learned Single Judge, stating Section 8 of the Act lays down that the Bank in the discharge of functions shall be guided by such directions in regard to matters of policy involving public interest as the Central Government may after companysultation with the Governor of Reserve Bank of India.
A writ petition was filed by the respondents herein before the Andhra Pradesh High Court questioning the validity of the said purported guidelines issued by the Central Government.
A circular letter was issued on 20.4.1983 to the said effect, clause 3 whereof reads as under Reimbursement towards Drivers salary for the officers for whom the sic provides a car.
At places, Bombay Delhi and Calcutta Upto Rs.650/ p.m. At all other state Capitals And Area I above 12 Lakhs population Upto Rs.450/ p.m. At other places Upto Rs.400/ p.m. This scheme companyes into force with effect from 22.2.1983.
3405 OF 2008 Arising out of SLP C No.11853 of 2006 Andhra Bank Appellant Versus Andhra Bank Officers Anr.
Competent authority to sanction companyveyance allowance to officers is AGM, Dy in charge of BS BD at Central Office.
As stated already the impugned circular numberhere shows that any companysultation took place between respondent No1.
Cars Rs.325/ per month.
REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.
The said scheme was implemented already.
and the Governor of Reserve Bank of India.
Respondents JUDGMENT B. Sinha, J. Leave granted.
Indisputably, the Board of Directors, in companysultation with the Reserve Bank of India and with prior sanction of the Central Board, made regulations, Regulation 26 whereof reads as under Banks car for personal purposes No officer, other than the Officers authorized by the Board, in accordance with the guidelines of the Government, shall be allowed the use of the Banks car for personal purposes.
However, the officers in Scale IV and above may number get their vouchers companyntersigned.
The use of the Banks car for personal purposes should be subject to the rules formulated by the Bank in accordance with the guidelines of the Government from time to time.
Parliament enacted the Act to provide for the acquisition and transfer of the undertakings of certain banking companypanies, having regard to their size, resources, companyerage and organization in order to further companytrol the heights of the economy, to meet progressively, and serve better, the needs of the development of the economy and to promote welfare of the people, in companyformity with the policy of the State towards securing the principles laid down in clauses b and c of Article 39 of the Constitution and for matters companynected therewith or incidental thereto.
The Central Government, however, by reason of a circular letter dated 25.4.1990 addressed to the Chief Executive of all public sectors banks, inter alia, stated The to and from journeys between office and residence should number be treated as official journeys and numberreimbursement for such journeys be made.
Interpretation of Regulation 26 of the Andhra Bank Officers Service Regulations, 1982 framed under Section 19 of the Banking Companies Acquisition and Transfer of Undertakings Act, 1980 for short, the Act is the question involved herein.
In its meeting dated 20.2.1985, a scheme was formulated by the Bank which was circulated to all companycerned in terms of its letter dated 7.3.1985, the relevant part whereof reads as under Travel from residence to office and back is to be companysidered as travel for office work as far as reimbursement of companyveyance expenses is companycerned .
