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2013 Supreme(SC) 972

IN THE SUPREME COURT OF INDIA
RANJANA PRAKASH DESAI AND A.K. SIKRI, JJ.
Punjab National Bank & Ors. - Appellants
Vs.
Ram Kishan - Respondent
CIVIL APPEAL NO.9172/2013 (arising out of Special Leave Petition (Civil) No. 31483 of 2012)
Decided on : 18-10-2013

IMPORTANT POINT
Unless 15 years service is rendered by an employee, he will not be eligible for pensionary benefits.

Headnote:Punjab National Bank Employees Voluntary Retirement Scheme, 2000-Punjab National Bank (Employees) Pension Regulation 1995- A perusal of the judgment of this Court in Dharam Pal Singh (supra) (CA 2132/2011) would demonstrate that the issue involved in the case had already been determined by this Court in Bank of Baroda & Ors. vs. Ganpat Singh Deora (2009) 3 SCC 217 where the identically worded Regulations were considered. The Court, thus, found that the judgment of the High Court in Dharam Pal Singh was contrary to the decision in Bank of Baroda case and set aside the same. In Bank of Baroda, this Court has held that unless 15 years service is rendered by an employee, he will not be eligible for pensionary benefits. (Para 9)

       Facts of the case :

        As on the date of voluntary retirement of the respondent, the respondent had not completed 15 years of service. In fact, service rendered by him as on that date was 14 years 2 months and 19 days. For this reason, the appellant-Bank did not issue any Pension Order in his favour. The respondent, however, pleaded that since his application for voluntary retirement under VRS, 2000 was accepted which lays down the conditions of service for a minimum period of 15 years, the respondent became entitled to pension as well, inasmuch as the deficit period was waived by the appellant-Bank by its conduct in accepting the application for voluntary retirement.

       Findings of the Court :

        Pension could be granted only on completion of 15 years of service which period of service the respondent had not completed.

       Result : Appeal allowed.

       

JUDGMENT

A.K. SIKRI, J.

1. Leave granted.

2. The facts which need narration for determination of the lis involved in this appeal are recapitulated as under:

3. The respondent herein joined the appellant-Bank as Peon on 13.8.1986. In the year 2000, the appellant-Bank introduced Voluntary Retirement Scheme known as Punjab National Bank Employees Voluntary Retirement Scheme 2000 (hereinafter referred to as “VRS, 2000”). This scheme was widely circulated, period whereof was 1.11.2000 to 30.11.2000 during which period those employees who wanted to seek voluntary retirement under the said scheme were permitted to apply. It was made applicable to those permanent full time employees of the Bank who had completed 15 years qualifying service or 40 years of age which means those employees fulfilling either of the aforesaid conditions were eligible to apply under the VRS, 2000.

4. The respondent also sought voluntary retirement under this scheme. His application was accepted and he was given voluntary retirement on 15.12.2000. He was also accorded superannuation benefits like Provident Fund, Gratuity and Leave Encashment.

5. The Bank has also Pension scheme for its employees which is known as Punjab National Bank (Employees) Pension Regulation 1995 (hereinafter referred to as the “Pension Regulation”). As per Regulation 28 of these Pension Regulations, an employee who has rendered a minimum period of 15 years of service is entitled to get pension. Regulation 28 of the Pension Regulation reads as under:

“Regulation 28: Superannuation pension. Superannuation Pension shall be granted to an employee who has retired on his attaining the age of superannuation specified in the Service Regulations or Settlement. Provided that with effect from 1.9.2000, pension shall also be granted to an employee who opts to retire before attaining the age of superannuation, but after rendering service for a minimum period of 15 years in terms of any scheme that may be framed for such purpose by the Board with the approval of the government.”

6. As on the date of voluntary retirement of the respondent, the respondent had not completed 15 years of service. In fact, service rendered by him as on that date was 14 years 2 months and 19 days. For this reason, the appellant-Bank did not issue any Pension Order in his favour. The respondent, however, pleaded that since his application for voluntary retirement under VRS, 2000 was accepted which lays down the conditions of service for a minimum period of 15 years, the respondent became entitled to pension as well, inasmuch as the deficit period was waived by the appellant-Bank by its conduct in accepting the application for voluntary retirement.

7. As the representation of the respondent to grant him pensionary benefits was rejected by the appellant-Bank, aggrieved by the order of rejection, the appellant filed civil suit in the court of Civil Judge (Senior Division), Gurdaspur, Punjab for declaration that he was entitled to pension with consequential relief and for mandatory injunction to direct the appellant-Bank to release all the benefits along with interest at the rate of 18% from the date it had become due to him. This Suit was, however, dismissed by the Civil Court vide judgment and decree dated 29.8.2003 holding that pension could be granted only on completion of 15 years of service which period of service the respondent had not completed. He was, therefore, held entitled to other benefits like ex-gratia, gratuity and leave encashment but not the pension. The respondents filed Regular First Appeal against the aforesaid judgment under Section 96 of the Code of Civil Procedure (CPC) read with Order 41 CPC. This Civil Appeal also met with the same fate as it was dismissed affirming the judgment of the Trial Court. Still aggrieved, the respondent took the matter to the High Court of Punjab and Haryana by filing Regular Second Appeal under Section 100 of the CPC. By impugned judgment dated 13.3.2012, the High Court has allow





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