R.M. Lodha JUDGMENT
R.M. Lodha, J.
1. Leave granted.
2. These sixteen appeals arise from the judgments of Punjab and Haryana High Court, Calcutta High Court and Kerala High Court and relate to different banks but since the common issues are involved, it is appropriate that these appeals are dealt with and disposed of by the common judgment.
3. In the month of May, 2000, Government of India, Ministry of Finance (Banking Division), advised the nationalized banks to carry out detailed manpower planning as these banks were found to have 25% of its manpower as surplus. A Human Resource Management Committee was constituted to examine the said issue and to suggest suitable remedial measures. The committee so constituted observed that high established cost and low productivity in public sector banks affect their profitability and it was necessary for these banks to convert their human resources into assets compatible with business strategies. Inter alia, the committee placed the draft Voluntary Retirement Scheme with the Central Government that would assist the banks in their efforts to optimize their human resources and achieve a balanced age and skills profile in keeping with their business strategies. With the approval of the central government, Indian Bank Association (IBA) circulated salient features of the draft scheme to the nationalized banks for consideration and adoption by their respective boards vide its letter dated August 31, 2000. The Board of Directors of each of the nationalized banks, keeping in view the objectives, considered the draft scheme and adopted it separately.
4. In the present batch of appeals, the Voluntary Retirement Scheme brought out by the Punjab National Bank, Punjab & Sind Bank, Bank of India, Union Bank of India and United Bank of India is in issue.
5. The scheme adopted by these banks, although separately, is identical and bears similar salient features with some variation in certain respects. It is not necessary to consider them individually. For the sake of brevity, we shall refer the scheme as VRS 2000.
6. The objective of VRS 2000 has been:
-to transform the organizational as more efficient as well as for controlling operational costs;
-to improve the prospects and career growth and skills upgradation for employees by rationalizing the manpower;
-to help the bank to right size the growth,
7. We may, at this stage, summarise the salient features of........