All India State Bank Officers Federation Vs State Bank of India (Madras High Court)
The Madras High Court, in All India State Bank Officers Federation Vs State Bank of India, dismissed a writ petition challenging the validity of the Indian Banks’ Association (IBA) Circular dated 07.04.2014 and the State Bank of India’s e-Circular dated 15.04.2014, which withdrew the facility permitting officers to undertake overseas travel as part of Leave Travel Concession (LTC) and Home Travel Concession (HTC). The petitioners had also sought continuation of the foreign travel facility that had been available to officers prior to the impugned circulars.
The petitioners contended that the facility allowing officers to undertake foreign travel while availing LTC had existed since 1982 pursuant to discussions between bank management and officers’ representatives. According to them, the benefit had been recognised through various circulars and had been extended without imposing any additional financial burden on the banks, as reimbursement remained restricted to the amount payable for travel within India. They argued that the withdrawal of this longstanding benefit without prior notice, consultation, or negotiation was arbitrary and violative of principles of natural justice. They further asserted that the facility had become part of officers’ welfare benefits and service conditions and could not be unilaterally withdrawn.
