Sc Upholds Sbi Right To Sack Staff For Contesting Polls

The Supreme Court yesterday set aside a judgment of the Andhra Pradesh High Court and asserted the right of the State Bank of India to terminate the services of employees who contest elections.

The SBI Staff Union had won the case in the high court, against which the bank appealed to the Supreme Court. According to the bank rules, employees cannot stand for public or civic office. One employee contested a local body election without permission.

When he was asked to give an undertaking that he would resign if he got elected, he moved the high court and won.

The high court view was that the bank policy violated Section 9-A of the Industrial Disputes Act which barred change in the service conditions without giving a hearing to the employees.

 

The Supreme Court bench consisting of Justice Sujata Manohar and Justice D P Wadhwa stated that the bank rule did not bring about any change in the service conditions.

When a person contests elections to a public body, he naturally seeks support from political parties or various other persons in his constituency. In turn, the elected person will be under an obligation to those persons who are responsible for his election. Such an elected person, if he is an employee of a public sector bank which deals with sanction of loans, advances and overdrafts, may be in a position to use his influence with officers regarding granting of these facilities, the judgment said.

The bank policy was to prevent political influence and favouritism.

In this context, the Supreme Court recalled another appeal from the Delhi High Court judgment which had upheld the rule. In that case, the employee was elected to the municipal council and subsequently terminated. He challenged the bank rule arguing that it violated his fundamental right to freedom of speech and right to form association. The high court as well as the Supreme Court rejected that contention.

Without their support, it is not possible for a person to get elected.