The main legal point established in the judgment is that the distinction between resignation and voluntary retirement under the Bank's Pension Regulations is not valid, and employees who resign on medical grounds should be considered for pension benefits.

M.S. Karnik, J.

The petitioner worked with the respondent bank for a period of 26 years from 1965 to 1991. On 3rd May, 1991, the petitioner resigned from the services of the bank on account of ill-health. It would be material to reproduce the letter dated 25th February, 1991 and the letter dated 15th/23rd April, 1991 in extenso.

EXHIBIT "A"

Bombay

25th February, 1991

The General Manager (Personnel),

Bank of India,

Head Office.

Through : The Zonal Manager,

Bombay South Zone.

Dear Sir,

In view of my weak health I have decided to resign from the services of the bank with effect from 25.5.1991.

2. I thank the Bank for the consideration it has shown me during my continued ill-health and difficult personal circumstances.

3. I have no liability towards the Bank.

Thanking you,

Yours faithfully,

Sd/-

(Sheroo S. Shapurji)

Officer

Custodian Of Securities Department

EXHIBIT "B"

Bombay

15th/23rd April, 1991

The General Manager (Personnel)

Bank of India,

Head Office.

Through : The Zonal Manager,

Bombay South Zone.

Dear Sir,

Please refer to my letter of resignation of February 25th, 1991. Since then, because of ill-health, I have had to avail of five casuals duly supported by Doctor's certificates. My Doctor has advised me to retire from service as early as possible. His recommendation of 1st April, 1991 is attached. Despite this, I have tried to pull on and attend to my duties but this is now becoming extremely difficult. Accordingly, I request the Bank to release me from service from 3rd May, 1991.

Thanking you,

Yours faithfully,

sd/

(Sheroo S. Shapurji)

Officer

Custodian Of Securities Department

2. The petitioner also relied upon the Certificate dated 1st April, 1991 issued by Dr. J.M. Tralshawala, M.B.B.S., advising the petitioner to retire from the services at an early date. The petitioner by a letter dated 27th July, 1994 applied for pension under the Bank's proposed Pension Scheme (circulated vide Branch Circular No. 88/10 dated 18/4/1994). She pointed out that under the proposed Pension Scheme, employees who leave the bank after a minimum service of 20 years are eligible for pension under the "voluntary retirement" clause. She therefore requested to treat her voluntary resignation(on health ground) as "voluntary retirement". The petitioner by her letter dated 27th July, 1994 opted for the Bank's Pension Scheme as per the provisions of the said Scheme and undertook to refund the Bank's contribution to Provident Fund together with accrued interest thereon on her retirement plus simple interest thereon at 6% p.a..

3. The bank by letter dated 23rd September, 1994 informed the petitioner that her letter dated 27/7/1994 requesting for considering her resignation as Voluntary Retirement cannot be accepted as the petitioner has resigned from the services of the Bank w.e.f. 3/5/1991 and therefore not eligible to be covered under the Bank's proposed Pension Scheme. The petitioner has therefore filed this Petition for grant of pension under the Bank of India (Employees') Pension Regulations, 1995.

4. The respondent bank has not filed any reply. Learned Counsel for the petitioner submits that the letter of resignation dated 25th February, 1991 was in essence a letter seeking premature retirement on medical ground.

5. Originally the employees of the respondent bank were not entitled to pension. But there was a scheme for payment of provident fund and gratuity under rules. When there was a demand from the bank employees for grant of pension to them, after discussions with the Union, the bank proposed to introduce the pension scheme for all the employees and certain proposals were put forth while introducing the pension scheme for the officers. It seems that the draft scheme was circulated amongst the employees both in service as well as retired. The bank also called for options to be exercised from the officer employees who had retired between August 1, 1986 and October 31, 1993. The petitioner by her letter dated 27th July, 1994 (Exh.C1) and 27th July, 1994 (Exh. C2) opted f