ANDHRA BANK vs B.SATYANANAYANA

The Supreme Court upheld the validity of Regulation 17(1) of the Andhra Bank (Officers’) Service Regulations, 1982, while clarifying that the promotion policy must comply with Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The Court emphasized that when power is delegated to a subordinate body, compliance with the stipulated conditions is mandatory to avoid ultra vires actions. The appeal was dismissed, affirming the High Court's decision that the promotion guidelines were improperly formulated without adhering to the necessary legal requirements.