NEW BANK OF INDIA EMPLOYEES UNION vs U O I

The Supreme Court upheld the validity of the New Bank of India (Amalgamation and Transfer of Undertaking) Scheme, 1993, framed under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The Court ruled that the Placement Scheme, which altered the seniority of employees from the Transferor Bank, did not violate Article 14 of the Constitution, as it was a necessary measure for public interest following the financial distress of the Transferor Bank. Consequently, the appeals by the employees challenging the scheme were dismissed.