Dinesh Chandra Kumar and Others vs The State of Bihar and Others

This letters patent appeal has been filed against an order dated 22 May 2002 on CWJC No. 4044 of 2001: Dinesh Chandra Kumar and Ors. v. The State of Bihar and Ors.

The Petitioners are looking for the revision of their pay scales. The only reason why this revision has not been granted to the Petitioners is because the Bank, Central Co-operative Bank Limited, Khagaria, has eroded its capital and this erosion as on 31 March 1999 was total and complete. Banking Regulations in reference to the Banking Regulation Act, 1949 Section 11, were not complied with and the financial statements show that the erosion of capital was 100 percent.

The learned judge has observed after noticing the record that if the incidence of revision were to be paid by the Bank then it will tantamount to touching the deposit of investors. The efficiency of the Bank is reflected by its staff. If the capital of the Bank has eroded its employees are hardly in a position to say to the High Court to issue a writ of mandamus directing the Bank or its management to arrange for payment of revised pay scales.

The Court is afraid that it does not find any error in the order of the learned judge on the writ petition by not interfering. it may be placed on record that basically the Petitioners were seeking declaration that a particular circular which acts as check and balance on the finances of the Bank in the circular dated 10 November, 2000 Clause IX (kha) be declared as ultra vires.

These are fiscal matters and precautionary measures have to be spelt out by the government as directions to the Bank. The precautionary clauses as the present one cannot be interfered with by the High Court.

Dismissed.