In Brief
A State Bank of India officer was posted to Johannesburg in 2000 at a salary of US$1965 per month, which the Bank later reduced to US$1300 effective January 2001 based on a revised Cost of Living Index. The High Court quashed the reduction, holding it was arbitrary and unfair. The Supreme Court reversed this, holding that the Bank's letter expressly stated salary was subject to change, and the reduction was validly made under Government directions implementing uniform salary guidelines for all Public Sector Bank officers posted abroad. The reduced salary was based on objective Cost of Living data and applied non-discriminatorily to all officers, providing a reasonable basis for the decision. The appeal was allowed and the High Court's order set aside."
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