JUDGMENT :-

V.S. Sirpurkar, J.

1. Leave granted.

2. The respondent No. 2 herein Mrs. Manju Saxena was the employee of the appellant-Hongkong & Shanghai Banking Corporation Ltd. (hereinafter called ‘the bank for short). According to the appellant, she drew a salary of Rs.58,330/- per month with a total annual remuneration of Rs.7,32,736/-. In May, 2005, the Bank reviewed its working norms, staff structure and other relevant issues governing its operations and it was decided that the various posts and positions held by the staff were to be discontinued. One such post to be discontinued was held by the second respondent. A severance package and/or alternate employment to all such persons whose posts were to be discontinued were offered. Accordingly such proposal was made to the second respondent also, but she declined to accept the package.

3. On 01.10.2005 her services were terminated after paying her six months salary as compensation in lieu of notice period as provided in the contract of employment and compensation equivalent to 15 days salary for each completed year of service amounting to Rs.8,17,071/-. This sum was allegedly accepted by the second respondent.

4. However, a disput