Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 — ss. 8, 19; Andhra Bank (Officers) Service Regulations, 1982 — Regulation 26: The Bank's scheme treated officers' expenditure on travel between residence and office as reimbursement-worthy official travel. The Central Government (circular dated 25.4.1990, circulated via the Indian Banks' Association) directed that such to-and-fro journeys not be treated as official journeys and that no reimbursement be made. The respondents' writ petition succeeded: the Single Judge, and on appeal the Division Bench of the Andhra Pradesh High Court, held the guideline violative of s. 8 as issued without consultation with the Reserve Bank of India. Allowing the appeal (S.B. Sinha, J., for the Court): (i) s. 8 applies to directions on matters of policy involving public interest; a regulation laying down terms and conditions of service of bank employees does not necessarily involve any policy decision involving public interest, and s. 8 is separate and distinct from the regulation-making power under s. 19; (ii) the guidelines were issued in exercise of the power under Regulation 26(2) — a statutory power — and, the Regulations having been framed in consultation with the RBI, the RBI must be held to have approved issuance of guidelines by the Government; no fresh consultative process is required whenever guidelines are issued or rules made; (iii) consultation must be meaningful, conscious and effective, but only where consultation is necessary — here none was necessary for issuance of the guidelines; (iv) under Regulation 26(2) the Bank's rules need only 'should be' in accordance with the Government guidelines, the ultimate decision remaining with the Bank. Andhra Bank v. B. Satyanarayana, (2004) 2 SCC 657, relied on; Union of India v. Mohd. Ramzan Khan, Municipal Corporation of Greater Bombay v. New Standard Engineering, IAS (SCS) Association, and Gauhati High Court v. Kuladhar Phukan, distinguished. Impugned judgment set aside; appeal allowed with costs, counsel's fee Rs. 25,000/-.
