Pension calculations for deputationists must exclude deputation allowances, relying solely on average emoluments from the parent bank as per applicable regulations.

JUDGMENT :

RAVINDRA V. GHUGE, J.

1. Rule. Rule made returnable forthwith and heard finally by the consent of the parties.

2. The question posed in all these cases is, whether the deputation allowance drawn by an Employee, at the time of his superannuation, could be reckoned with for the purpose of calculating the pension and retirement benefits?

3. The common factor in all these cases is that each of these Petitioners was on deputation with a particular bank (commonly referred to as the ‘Loanee Bank’) until their dates of superannuation. It is the contention of the Petitioners that as they received 15% extra salary on account of being on deputation with the Loanee Bank and as P.F. contributions were deducted on such deputation allowance, the pension should be fixed on the basis of the additional emoluments, since portion of the provident fund deduction was deposited by the Parent Bank (also known as the ‘Lending Bank’) in the pension account of each Petitioner.

4. In each case, the Government of India, Ministry of Finance had published an advertisement inviting applications for the post of Central Vigilance Officer (CVO) in Public Sector Banks, Financial Institutions, Insurance Companies, etc. Each of them had applied to the Government seeking deputation and it was under the orders of the Central Government that they were sent on deputation until their dates of superannuation. Each one of them was officiating as a CVO and their deputations were extended on request till their dates of superannuation.

5. Since the entire case turns upon the interpretation of the service rules, we are not adverting to the specific dates on which they were sent on deputation and the dates of their superannuation, as the main issue does not turn upon these details.

6. To appreciate the circumstances resulting in these Petitioners proceeding on deputation, we are referring to the similar orders passed by the Under Secretary (Vigilance), Ministry of Finance, Department of Financial Services Vigilance Section, Government of India, vide which, the Parent Bank in each of these cases was informed that, it was decided in consultation with the Central Vigilance Commission to appoint the particular Petitioner, who was working as General Manager with the Parent Bank, as the Chief Vigilance Officer with the Respondent No.2/Bank. It is in identical circumstances that these Petitioners were deputed with the Loanee Bank as CVO and each of such Loanee Banks was informed in writing about such deputation.

7. The identical communications by the Under Secretary Vigilance to each of these Petitioners, the Loanee Banks and the Parent Banks, indicated certain conditions. For reference purpose, we are reproducing the conditions made applicable to one of the Petitioners, as under :-

“2(i) She will be treated as on deputation to IDBI Bank, Mumbai for a period of 3 years or till she attains the age of superannuation in her parent bank, whichever is earlier. Her terms may be extended / reduced, if necessary, only with prior concurrence of Department of Financial Services and Central Vigilance Commission.

2(ii) Her pay scale & prerequisites during her tenure as CVO will be equivalent to that of WTD (DMD) of the IDBI Bank. However, she will have the option to draw her pay scale in parent bank plus 15% deputation allowance of her basic pay thereon and prerequisites of lending organisation.

2(iii) During the period of deputation, the contribution towards Leave Salary and Contributory Provident Fund will be borne by the borrowing organisation.

2(iv) The borrowing organization will meet the expenditure on the TA & DA as per rules applicable to its officers.

3. The officer is requested to send a report of taking over charge as the CVO to his Department and Central Vigilance Commission along with the particulars in the enclosed proforma.

4. MD & CEO of the lending Bank is being requested to relieve the officer to enable joining the new assignment in IDBI Bank, Mumbai.”

8. All the Petitioners commu