NDLI: The State Bank of India & Ors. Vs. Ravindra Nath & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	State Bank of India Act 1955 Re-fixation of salary
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	State Bank of India Act, 1955 (23 of 1955)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	State Bank of India Act, 1955: s.18 – Re-fixation of salary– Respondent joined the appellant bank in 1981 and on 24.6.2001,he was posted at Johannesburg as Manager on a salary of USD 1965 per month but subject to change from time to time – In the letter of posting, there was a clause that salary as well as other terms and conditions spelt out in the letter were subject to review and revision by the bank from time to time – On 16.1.2001, the salary in respect of the respondent was re-fixed as USD 1300 and same was subsequently revised to USD 1380 – The stand of the bank was that when the respondent was posted at Johannesburg,the salary was fixed on Consumer Price Index of 1992 on the basis of directives of the Working Group of the Standing Committee w.e.f1.1.1995 in the absence of the availability of Cost of Living Index but since the relevant data became available in March 2000, the Working Group in its meeting held on 15.1.2001, refixed the salary based on formula approved by the Standing Committee and that these recommendations of the Working Group were binding on all public sector banks in respect of the officers posted abroad – High Court held in favour of respondent on the ground that the respondent did not have privity of contract with the Standing Committee on the basis of which the salary was reduced and that the letter did not remotely suggest that the salary of USD 1965 was tentative – On appeal, Held: The respondent as an Officer of the Bank is bound by the salary structure approved by the Bank for its Officers – The decision of the Standing Committee is a part of the decision-making in respect of salary payable to the employees of the Banks – The employee of a Bank has no right that he should be associated with the decision-making process in respect of the fixation of salary –However, if the question of reasonableness of salary arises, then in exercise of power of judicial review, the Court may examine the decision-making process – In exercise of power of judicial review,there was no infirmity in the decision of Standing Committee taken on 15.01.2001 in pursuance to the direction of the Government of India issued under s.18 of the Act – Since, the salary was fixed for all Officers of the Public Sector Banks in a non-discriminatory manner keeping in view the Cost of Living Index, the High Court erred in law in setting aside the reduction in salary – There was reasonable basis of reduction of salary – Moreover, there was no promise ever made to the respondent that his salary of US $ 1965 shall remain unchanged during the period of his posting – In fact,it was categorically mentioned that the salary as well as perquisites were subject to change from time to time – Therefore, mere fact that the salary was changed subsequently, it will not confer any legally enforceable right in favour of the respondent to challenge the same on the ground that the same is arbitrary or unjust.Allowing the appeal, the Court
Judge	Hon'ble Mr. Justice Hemant Gupta
Neutral Citation	2019 INSC 184
Petitioner	The State Bank Of India & Ors.
Respondent	Ravindra Nath & Ors.
SCR	[2019] 2 S.C.R. 121
Judgement Date	2019-02-12
Case Number	12367

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