Why Banks are Not Adhering to National Litigation Policy

Ads by Google

18/05/2012

The Secretary

Department of Financial Services

Ministry of Finance, Govt. Of India

Jeevan Deep Building

10 Parliament Street,

NEW DELHI - 110 001.

Dear Sir,

Sub : Need for adherence by Heads of Govt. Depts. and Public Sector Banks to

the National Litigation Policy of Govt of India.

I hope that you are well aware of the National Litigation Policy framed by Govt. of India in the year 2009. The said policy is understood by a common person as follows:-

I (a) that the departmental heads of Govt. should never forget the basic principle that it is the responsibility of the State and instrumentalities of State to protect the rights of citizens and to respect their fundamental rights.

(b) that the departmental heads of Govt. shall ensure that bad cases are not needlessly persevered with and they shall not develop a tendency to win such litigations at any cost.

(d) that the departmental heads of Govt. must give utmost priority to assist weaker sections and “senior citizens.”

(e) that the departmental heads of Govt. must ensure that Govt.lawyers do not seek frequent adjounments.

(f) that the departmental heads of Govt. shall ensure that in service matters “no appeal will be filed in cases where the matter pertains to cases of pension or retirement benefits” without involving any principle and without setting any precedent or financial implications. Appeals will not be filed in service matters to expose the cause of one section of employees against another.

(g) that the departmental heads of Govt. will ensure that appeals will not be filed in Supreme court unless the case involves a question of law.

II. It is now learnt that the Heads of Public Sector Banks (which are declared by courts as instrumentalities of state under Article 12 of Constitution of India) are ignorant of the existence of above provisions of National Litigation Policy. Accordingly Public Sector Banks are liberally filing appeals in Service matters also till cases reach Supreme Court of India, unmindful of the fact that the respondents belong to weaker section, senior citizens where clear error of classification in contravention of Article 14 & 16 of Constitution of India is committed. Another reason for such an approach by Public Sector Banks is that they are more often misguided by Indian Banks Association, which is devoid of any accountability, which has self assumed certain powers of controlling authority i.e. Govt.of India.

Ads by Google

III. It is also learnt that Andhra Bank has decided to file an appeal against the judgment dated 22/03/2012 of Andhra Pradesh High Court in writ Petition No. 9069 of 2011 between Sreeram Ramamurthy versus Andhra Bank. In this judgement the High court has clarified that all categories of employees i.e. those who were in service of banks prior to 29/09/1995 and continued in the service of the bank as on 27/04/2010 but retired after that date and prior to 27/04/2010 are eligible for one more option for pension. The court has further held that officers who are compulsorily retired as a penalty are also eligible for pension scheme provided by have completed 20 years of service.Similarly Vijaya Bank, another Public Sector Bank, it is learnt, has decided to file an appeal against the judgment dated 18/04/2012 of High court of Karnataka in the writ Petition No. 24158/2011 between Narasimhappa versus Vijaya Bank. In this judgment the High court has held that even resignees are eligible for pension option provided they have completed a minimum qualifying service of 20 years.

In next few days judgments are expected from several High Courts in about 300 to 400 writ petitions filed by VRs optees, who are all senior citizens challenging the arbitrary action of Banks” denying them second option for joining pension scheme. When those judgments are pronounced few more appeals are likely to be filed by Public sector Banks unless the provisions of National Litigation Policy detailed above are brought to the notice of Heads of all public sector Banks immediately.

IV. I therefore suggest that the Heads of Public Sector Banks may be furnished immediately with a copy of National Litigation Policy document and may be directed to avoid filing appeals in service matters relating to recipients of socially beneficial legislations, senior citizens and other weaker sections. Govt. of India may also examine filing of appeals only in case where question of law is to be decided.

Please acknowledge receipt.

Thanking you,

Yours faithfully,

Sd/-

(Shri A. Premanand Pai)

S/o A Panduranga Pai

"ANJANA" Ist Cross

5th Main Road,V.P.Nagar

Udupi - 576 102, Karnataka.

Mobile No. 94490 49041.