CHAIRMAN, CANARA BANK, BANGALORE vs SHRI M.S.JASRA

The Supreme Court held that under Section 45 of the Banking Regulation Act, 1949, an employee of a bank that amalgamates with another bank is entitled only to the terms and conditions of service applicable to employees of the transferee bank. The Court ruled that the age of superannuation for the respondent, who was previously entitled to retire at 60 years in Lakshmi Commercial Bank, is now 58 years in Canara Bank, thus rejecting his claim for extended service. The High Court's interpretation of the amalgamation scheme was found to be incorrect, leading to the allowance of the appeal by the petitioner-bank.