In a judgement passed on March 31, Justice SM Subramaniam said that at present, each bank followed its own procedure for empanelling lawyers and such procedure was not transparent and favoured those with “godfathers.”
Since nationalised banks fall within the definition of ‘State’ under Article 12 of the Constitution, they cannot shirk their responsibility of implementing the “mandatory principles of equal opportunity enunciated under the Indian Constitution,” the Court said.
Hence, the single-judge directed all 28 nationalised and public sector banks in the country to revise the procedure within four months ensuring that the new procedure provides equal opportunity to candidates belonging to Scheduled Castes/ Scheduled Tribes (SC/ST) and Other Backward Classes (OBCs) candidates .
“In view of the facts and circumstances, the respondents 7 to 34 herein are directed to review the existing procedure of their respective
Banks for empanelment of Lawyers and suitably alter / amend / frame new rules / procedures in consonance and in compliance with the Constitutional mandates and based on the established principles to be adopted for appointment / empanelment. The said exercise is directed to be completed within a period of four (4) months from the date of receipt of a copy of this order,” the Court ordered.
The Court was hearing a petition filed by one K Marimuthu praying that the Reserve Bank of India (RBI) be directed to restore a previous circular that directed all banks to encourage and provide equal employment opportunities to lawyers from the SC/ST/OBC community for empanelment.
The said circular had been issued by the RBI in 1991 and withdrawn in 2006. In December 2006, the RBI had withdrawn a set of 41 circulars issued between January 1991 and June 2004 keeping in mind the changes that the banking sector’s operational matters had gone through post liberalisation.
However, the petitioner argued that the circular on giving equal opportunities to SC/ST candidates had nothing to do with changes in operational matters, and therefore, should not have been withdrawn.
He also told the Court that there are 19 nationalised banks and 6 banks in nationalised State Bank of India Group public sector banks and 3 other public sector banks. By not providing equal opportunities to SC/ST/OBC candidates, they were robbing them of massive employment opportunities, it was contended.
Source: Barandbench
