HC quashes govt order on hiring pvt guards by a foreign bank

The court also set aside the government order rejecting the exemption sought by the bank from an existing statute in employing private guards.

The court was hearing a petition filed by Standard Chartered Bank challenging the state government's decision to employ private security guards through Security Guards Board (SGB) constituted by the state government.

The Energy, Industries and Labour department in a letter dated October 9, 2012, rejected the bank's application seeking exemption under section 23 of Maharashtra Private Security Guard (Regulation of Employment and Welfare) Act, 1981, for permission to employ private guards.

Section 23 of the act provides for registration with the SGB in cases where salaries paid by the agencies are in tandem with those stipulated by the board.

"The Appropriate Authority, while rejecting Standard Chartered Bank's application, has obviously not considered or analysed the efficacy of the specific reasons stated by the Bank in the exemption application at all, but proceeded on the basis which is completely unconnected with the cause stated in the Bank's application", observed Justices Mridula Bhatkar and A M Khanwilkar in their recent order.

The state order recorded that the bank was obliged to employ security guards provided by SGB and turned down the bank's application for exemption under Section 23.

The bank contended that its application referred to the factors justifying the grant of exemption from applying in the scheme and in particular deployment of security guards by SGB.

The London-headquartered bank submitted that it had assured the state government that guards deployed by it will enjoy more wages and benefits than the ones fixed by SGB.

An undertaking to this effect had been given by the bank including revision of wages as and when the Board revises it from time to time. Standard Chartered had also given further undertaking in the application that it would abide by the provisions of the Act of 1981 and scheme framed thereunder. (More)