JUDGMENT

D.P. Wadhwa, J.-These are two appeals and are directed against the common judgment dated February 25, 1980 of the Delhi High Court by which the High Court not only directed that pension and provident fund be paid to the respondents, who were working as Assistants, but also awarded damages to them and against the appellant-Bank for wrongfully withholding these payments. The operative part of the impugned judgment reads thus :

"In the result, we direct that the Bank shall pay within four weeks to Sarvshri Gupta (respondent in CA No. 2141/80) and Gulati (respondent in CA No. 9943/83) :

1. the entire pension fund due as calculated under the Pension and Guarantee Fund Rules;

2. a sum equivalent to 9 per annum by way of damages for wrongfully withholding the aforesaid amount from the date of retirement to the date of actual payment; and

3. the provident fund due along with interest plus an amount equivalent 9 per annum by way of damages from the date of retirement to the date of payment.

Amounts already paid under our order of 19th December, 1979, shall be deducted from the above payments."

2. Both Gupta and Gulati had retired from the service of the Bank after putting varying years of service and claimed pension and provident fund. These were denied to them by the Bank on the ground that there were certain lapses on their part while in service and that under the provisions of the relevant rules, as applicable, these amounts could be with-held. There claims were resisted by the Bank relying on Rule 11 of Rules and Regulations of the Imperial Bank of India Pension and Guarantee Fund (for short Pension Rules ) and Rule 20 of the Imperial Bank of India Employee s Provident Fund Rules. These Rules read as under :

"Rule 11. The retirement of all officers of the Bank shall be subject to the sanction of the Executive Committee of the Central board. The retirement of all other employees of the Bank shall be subject to the sanction of the Executive Committee or the Local Board concerned with their employment. Any Officer or other employee who shall leave the service without sanction as required by this rule shall forfeit all claim upon the fund for pension.

Rule 20. When a member resigns or retires from the service of the bank he shall, if he has served the Bank for a period of five years or more (including service in the Presidency Banks), be entitled to receive the balance at his credit in the fund. Provided that when any member resigning or retiring from the service of the Bank is under a liability incurred by him to the Bank, the trustees shall, irrespective of the duration of his service, pay to the Bank out of the balance at his credit in the fund any amount due by him to the Bank (not exceeding in any case the sums contributed by the Bank to his account in the fund and any interest credited to his account on the sums so contributed)."

3. There are separate rules governing the service of Assistants in the Imperial Bank of India (Service Rules, for short). Of these Rules, 25 and 26 would be relevant and are set down as under:

"25. An Assistant may at the discretion of the Executive Committee be called upon to retire from the Bank s service upon completion of twenty-five years service.

26. All Assistants shall retire at fifty-five years of age or upon the completion of thirty years service whichever occurs first :

Provided that the Executive Committee may extent the period of service of an Assistant who has attained the age of fifty-five years (fifty-eight years w.e.f. 1.4.1967) or has completed thirty years service should such extension be deemed desirable in the interests of the Bank.

Note-For the purposes of rules 25 and 26 service shall count:-

(i) in the case of an Assistant first engaged by the Bank as a Probationary Assistant, from the commencement of his probationary service or from the date he attained the age of twenty-one years if his probationary ser