ALL INDIA BANK OFFICERS' CONFEDERATIONAND ORS. vs UNION OF INDIA & ORS.

The Supreme Court held that the circular issued by the Central Government regarding the appointment of non-workmen Directors on the Board of Nationalised Banks is ultra vires the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, specifically Section 9, and the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980. The Court emphasized that the discretion of the Central Government in appointing Directors must be exercised reasonably to ensure representation of both workmen and non-workmen employees. Consequently, the circular was declared null and void, reaffirming the need for adherence to the legislative intent of inclusive representation on the Board.