Kerala High Court Refers Federal Bank And Officers’ Association To Mediation In View Of Larger Public Interest

The Kerala High Court on Tuesday referred Federal Bank and Federal Bank Officers’ Association to mediation for resolution of their dispute. The Court constituted a mediation tribunal consisting of Justice A.M.Shaffique (former Judge of Kerala High Court), Adv Sreelal N Warrier and Adv George Merlo Pallath trained Mediators of the Kerala State Mediation and Conciliation Centre, High Court of Kerala.

A single bench of Justice C S Dias stated that

“Taking into account the goodwill and reputation that the second respondent – Bank has earned over the last several decades, and also the larger public interest that is involved, particularly the interest, anxiety and fear of the customers of the second respondent, I am of the view that interest of the 1.40 crore customers of the Bank would over-ride and outweigh the petitioner's demands and the second respondent's alleged obstinacy.”

The Court noted that as of 31.3.2022 Federal Bank has 1282 branches spread across 24 states and 5 Union Territories. The Bank also has 1.40 crore customers, 12790 employees and deposits worth Rs.1,81,700.59 crore.

“this Court is definitely of the view that the demands that have been raised by the petitioner Association can be resolved through the alternative dispute redressal mechanism of mediation. This Court hopes that the petitioner and the second respondent would keep aside all their personal interests, and sit across the table, and amicably resolve their differences, instead of putting their customers in peril” the Court stated in its order.

Sr. Adv. P Chidambaram assisted by Adv. P Ramakrishnan appeared for the Officers’ Association and Adv. Benny Thomas appeared for Federal Bank.

The Court was considering a plea by the Federal Bank Officers’ Association challenging the conciliation notice issued by the Regional Labour Commissioner on an alleged notice of strike by the Association against Federal Bank.

Senior Advocate P Chidambaram appearing for the Association had argued that the notice of strike was only issued to Federal Bank and not to the Labour Commissioner. “I issued a notice to my employer, I did not issue a copy to the Labour Commissioner, nor did I mark a copy to the Labour Commissioner.” He also argued that members of the Association are not workmen under Section 2(s) of the Industrial Dispute Act, 1947 and hence their dispute would not qualify as an industrial dispute. The Petitioner being an Association representing employees in the officer category cannot raise an industrial dispute, it was argued.

The Counsel for the Petitioner also submitted that the dispute not being an industrial dispute, the conciliation officer had no jurisdiction to issue the impugned notice. “Federal Bank says pursuant to Labour Commissioner issuing conciliation notice, there is a conciliation, therefore you cannot go on strike. But when the conciliation officer has no jurisdiction in respect of the alleged industrial dispute, the question of 22(1)(a) does not arise. Therefore, I can go on strike, there is no valid conciliation.” Sr. Adv. Chidambaram argued.

Adv. Benny Thomas appearing on behalf of the Bank argued that the Regional Labour Commissioner has the jurisdiction to conduct a conciliation proceeding by virtue of the power vested in him under Section 22 of the Act.

Case Title: Federal Bank Officers Association Vs Regional Labour Commissioner (Central)

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