In Brief
State Bank of India posted an officer, Ravindra Nath, to its Johannesburg branch at a salary of US$1965 per month. Three months later, in January 2001, following updated Cost of Living Index data, the Bank and a Standing Committee revised the salary downward to US$1300, applied uniformly across all Public Sector Banks' overseas officers. The High Court had set aside this reduction, holding it arbitrary and unfair. The Supreme Court held that the salary was expressly subject to review and revision; the reduction was based on objective government directions under the State Bank of India Act using updated UN statistics; and applied uniformly to all similarly posted officers. The Court dismissed arguments of equal pay, as cost of living materially differs between countries. The appeal was allowed and the salary reduction upheld.
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