Justice Raja Basu Chowdhury dismissed a writ petition filed by the All India State Bank Officers’ Federation challenging circulars dated 30.04.2021 and 02.06.2021 that link reimbursement of certain allowances (conveyance, newspapers, etc.) to completion of mandatory learning courses for officers in Scales I to V.
Background
The petitioners contended that tying reimbursements (₹10,000–₹26,000 per month) to mandatory learning was arbitrary, lacked nexus with the object of allowances, amounted to double jeopardy, and violated Article 14. They argued it affected total pay package and promotion prospects.
The Bank defended the policy as a necessary measure for skill upgradation, risk mitigation (including cyber frauds and money laundering), and compliance with RBI guidelines. Reimbursements were described as discretionary, not part of service rules, and withdrawable unilaterally.
Court’s Ruling
The Court held:
- Reimbursements are not a vested right under SBI Officers’ Service Rules, 1992; they are discretionary and can be linked to performance/ compliance.
- Mandatory learning has a direct nexus with banking efficiency, security, and regulatory requirements.
- Distinction between officers who complete learning and those who do not is reasonable and intelligible.
- Suspended employees’ treatment does not create discrimination.
- Rule 65A of SBIOSR empowers such conditions; circulars implement it validly.
- No violation of Article 14; policy does not shock the conscience of the Court.
Writ Petition dismissed.
Key Takeaways
- Banks can link discretionary allowances to mandatory skill upgradation.
- Administrative decisions for operational efficiency and risk reduction upheld.
- Officers cannot claim reimbursements as a matter of right if they fail to comply with reasonable conditions.
- Judicial restraint in service matters involving policy for modernisation.
Case Details
Case Name: All India State Bank Officers Federation & Ors. v. State Bank of India & Anr. Citation: WPO 1278 of 2022 with GA 1 of 2022
Court: Calcutta High Court (Original Side)
Coram: Hon’ble Justice Raja Basu Chowdhury
Date of Judgment: 18 June 2026
Click HERE for full Judgment
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