' MUHAMMAD RAZA KHAN (MEMBER).---This judgment will also dispese of connected identical Appeals Nos,46-K, 53-K, 54-K, 58-K, and 62-K of 1998 as all the appeals are identical on facts and law.
2. The appellants were the employees of the defunct Mehran Bank Ltd. The respondent No,2 i,e, the State Bank of Pakistan admittedly initiated action against the said Bank in accordance with the provision of Banking Companies Ordinance, 1962 and consequently the said Bank was amalgamated with the National Bank of Pakistan i,e, respondent No,3. The scheme was approved by the Federal Government and Ministry of Finance (respondent No,1). The appellants were entitled as retained employees of the Mehran Bank whereas some other employees were mentioned in the Scheme as excluded employees. The retained employees were to merge in the National Bank of Pakistan in accordance with the Scheme of amalgamation &swell as per requirement of the Ordinance and thus, the appellants switched over to the transferee Bank. i,e, respondent No,3.
Some facilities were extended to the appellant and there were demands for more facilities in accordance with the law. However, the Bank (respondent No,3) deferred the matter and consequently the appellants were compelled by the circumstances to file Service Appeal No, 289-K of 1997 which was withdrawn on 23-7-1999 with permission to file a fresh one, after completion of the formalities and procedure. Hence these appeals. The appellants have demanded that in accordance with the Scheme of amalgamation and requirement of law they should be treated at par with the rest of the employees of the National Bank of Pakistan and the benefits already accrued to the appellants by the valid and competent orders may not be recovered.
3. The respondents contested the appeal. We have listened to the arguments. There appears to be misconception by the appellants that they were entitled to all the benefits admissible to the employees of the transferee. Bank i,e, respondent No,2 right from the effective date of amalgamation. It is not the true reflection of the situation. In accordance with the scheme of amalgamation the excluded employees have been defined as "all existing employees of Mehran Bank who are not workmen and are listed in the Schedule attached to this Scheme". The term retained employees was defined as "all existing employees of Mehran Bank except the excluded employees". In Article 7 the future terms and conditions of the retained employees and excluded employees have been mentioned. Article 7.01 being relevant to the present appellants provide as follows:-- "7.01. Countinuing services of employees.--All retained employees shall become the employees of the Transferee Bank at the same remuneration and under the same terms and conditions of service, which they were getting or, as the case may, by which they were governed, immediately before the effective date; provided that (not only to the extent applicable) the provisions to subsection 5(1) of section 47 of the Ordnance shall be deemed to be incorporated herein."
' Thus, the Transferee Bank was required to comply with the said provision coupled with the requirement of subsection 5(1) of section 47 of the Ordinance and with the powers to adjust the employees of the Mehran Bank in accordance with the law by termination or re-employment.
Subsection (5). Of section 47 reads as follows:-- "(5) The scheme aforesaid may contain provisions for all or any for the following matters, namely:- - (h)...............
(iii) the continuance of the services of all the employees of the banking company, excepting such of them who not being workmen within the meaning of the Industrial Relations Ordinance, 1969 (XIII of 1969) are specifically mentioned in the scheme, in the banking company itself on, its reconstruction or as the case may be, in the Transferee Bank at the same remuneration and on the same terms and conditions of service, which they were getting or, as the case may be, by which they were being governed, immediately before the date of the order of meratorium: ' Provided that the scheme shall contain a provision that--
(i) the banking company shall pay or grant not later than the expiry of the period of three years from the date on which the scheme is sanctioned by the Federal Government, to the said employees the same remuneration and the same terms and conditions of service as are applicable to employees of corresponding rank or status of a comparable banking company to be determined for this purpose by the State Bank whose determination in this respect shall be final;
(ii) the Transferee Bank shall pay or grant not later than the expiry of the aforesaid period of three years, to the said employees the same remuneration and the same terms and conditions of service as are applicable to the other employees of corresponding rank or status of the Transferee Bank subject to the qualifications and experience of the said employees being the same as or equivalent to those of such other employees of the Transferee Bank: ' Provided further that if in any case under clause (ii) of the first provides any doubt or difference arises as to whether the qualification and experience of any of the said employees are the same as or equivalent to the qualification and experience of the other employees of correspondence rank or status of the transferee-bank, the doubt or difference shall be referred to the State Bank whose decision thereon shall be final;
4. The cumulative effect of the Article 7.01 read with the provisions of the Ordinance is as follows:--
(a) The retained employees shall become the employees of the Transferee Bank on the effective date.
(b) The retained employees shall be entitled to the same remuneration and the same terms and conditions of service to which they were entitled immediately before the effective date for a period of three years.
(c) The Transferee Bank shall fix remuneration and other terms and conditions of service of the employees as applicable to other employees of corresponding rank and status of the Transferee Bank subject to the qualification and experience of the said employees being the same or equivalent, within a period of three years.
(d) In cases of dispute with regard to qualification and experience the matter shall be referred for the arbitration to the State Bank of Pakistan.
5. This simply means that for period of three years from the effective date, the employees were entitled to the remuneration and terms and conditions as were applicable to them in the previous Bank prior to the effective date and they could not be in any case subjected to any terms and conditions less favourable to them than those they were enjoying prior to the said date. However, within a period of three years from the effective date the Transferee Bank was under obligation to extend the retained employees the terms and conditions of the employees of the corresponding Bank and status of the Transferee Bank subject to the scrutiny of qualification and experience. It appears that there was a misconception with the appellants that they were entitled to the terms and conditions of the employees of the Transferee Bank rightly from the effective date. This does not appear to be true interpretation of the legal position. For a period of three years they were to retain their previous terms and conditions whereafter they were to be treated at par with the employees of the Transferee Bank.
6. At the time of final arguments the appellants produced a letter issued by the respondent No,3 on 30-5-1998 stating as. Follows: "AMALGAMATION OF MEHRAN BANK ' Reference is made to the Scheme of Amalgamation of Mehran Bank Limited in National Bank of Pakistan and the provisions retained employees made therein, in pursuance whereof you have been paid and allowed by National Bank of Pakistan up to 31-12-1997 remuneration terms and conditions of service as was applicable to you immediately before the effective date. The competent Authority has decided to grant you the same remuneration and the same terms and conditions of service as are applicable to the other employees of the National Bank of Pakistan of corresponding rank and status keeping in view your qualification and experience with effect from 1-1-1998. Your remuneration and terms and conditions are as follows:--
1. Your pay fixation is being advised separately in NBP scale of Rs,2260-175-5760.
2. You will be paid monthly allowances as prescribed by the National Bank of Pakistan or the Wage Award from time to time in accordance with the established/Rules/Regulations/Laws in force and applicable to the Bank's employees.
3. Your service, seniority, retirement and retirement benefits in the, National Bank of Pakistan will be counted from 1-1-1998.
4. Your provident fund/gratuity, if any, as per rules of Mehran Bank Limited calculated up to 31-12- 1997 will be refunded to you.
5. Your service in the National Bank of Pakistan will be governed by the National Bank of Pakistan (Staff) Service Rules in force and as amended from time to time and rules as are prescribed by Wage Award and applicable to the Bank's employees and evaluation criteria and personnel policies determined by the Board.
6. You are required to complete service formalities as per the National Bank of Pakistan (Staff)
Service Rules in force and inter alia:-- I. Sign service agreement with the bank as per National Bank of Pakistan Rules; II. Become member of Bank's Provident and Pension Funds in accordance with the rules of National Bank of Pakistan in force and as amended from time to time.
7 You may be required to serve at any time of any of Bank's office in or outside Pakistan."
7. Thus, within the prescribed period of 3 years the appellants have been given the terms and conditions of the equivalent employees of the Transferee Bank and hence the legal requirement was satisfied. However, this latest development of 30-5-1998 could be agitated separately in accordance with the law as referred to hereinabove, if any of the employees is treated adversely.
However, so far as the position prevailing on the date of filing of appeal on 10-1-1998 is concerned, the same appears to have been rectified by the letter dated 30-5-1998 and thus, the grievance stands redressed for the time being.
8. It may also be stated' that during the said period of three years if any financial benefit, bonus etc. Was given to the appellants by the order of the competent Authority the same cannot be recovered in accordance with the doctrine of locus penitential.
9. With these observations we hold that the grievance of the appellants stands redressed and thus, the appeals become infructuous and subject to the above observations, are disposed of accordingly.
' No order as to costs. Parties be informed.