SBI merger: High Court orders status quo of terminal benefits, pension

Justice T Raja granted the injunction while passing orders on a writ petition from J Murali of Virugambakkam and 16 others, all employees of State Bank of Mysore. The writ petition sought to declare clauses 7 and 8 of the acquisition of the State Bank of Mysore as illegal and unconstitutional as it imposed new conditions of service and option on the officers/employees of the subsidiary banks without negotiation and consent. 

The petitioners had contended that they are compelled to work under the SBI when clause 7 says, “shall continue to work in accordance therewith”. Thus, there is in effect no option given to the petitioners to choose the conditions of service. 

Hence, the option mentioned in clause 8 without disclosing the conditions of service is an eye-wash. “We have not been given any choice and these two clauses are wholly onerous and hence violative of Articles 14 and 21 of the Constitution”, petitioners contended. 

However, the judge ordered status-quo in respect of the clauses dealing only with terminal benefits, pension and seniority.