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2024 Supreme(Mad) 2135

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.S. Ramesh, C.Kumarappan, JJ.
Union Bank of India, Rep. by its Deputy General Manager (Personnel) Mumbai– Appellant
Versus
The Presiding Officer, Central Government Industrial Tribunal Cum Labour Court and ors. – Respondents
W.A.No.2901 of 2023 and C.M.P.No.24094 of 2023
Decided On : 15-11-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr.P.Raghunathan, for M/s.T.S.Gopalan & Co.
For the Respondent: Mr.Balan Haridas

Failure to communicate refusal of voluntary retirement application within three months results in deemed acceptance, upholding the Tribunal's award for retirement benefits.

Headnote:(A) Union Bank of India (Employees') Pension Regulations, 1995 - Clause 29 - Voluntary retirement - Employee deemed to have retired after three months of application submission due to non-communication of refusal by the Bank - The Bank's claim of abandonment of service rejected as it failed to follow due procedure. (Paras 10, 20, 30)

(B) Industrial Disputes Act, 1947 - Delay and laches - The employee raised the dispute within a reasonable time after being made aware of the illegal termination of services, thus not barred by delay. (Paras 28, 30)

Facts of the case:
The employee applied for voluntary retirement on 28.11.1995, which the Bank failed to refuse within three months, leading to a deemed retirement. The employee raised an industrial dispute after several years, claiming wrongful termination.

Findings of Court:
The Tribunal declared the employee deemed retired and ordered the Bank to pay retirement benefits, which was upheld by the learned Single Judge.

Issues: Whether the employee's voluntary retirement application was valid and if the Bank's claim of abandonment of service was justified.

Ratio Decidendi: The court held that the Bank's failure to communicate refusal of the voluntary retirement application within the stipulated time resulted in a deemed acceptance, and the claim of abandonment was unfounded due to procedural lapses.

Result: Writ Appeal dismissed.

JUDGMENT :

M.S.RAMESH, C.KUMARAPPAN, JJ.

Prayer: Writ Appeal filed under Clause 15 of the Letters Patent, praying to set aside the order dated 09.02.2023 in WP.No.2022 of 2015.

For the sake of convenience, the appellant herein is referred to as 'the Bank', the first respondent as 'the Tribunal' and the second respondent as 'the employee'.

2. The employee, who joined the services of the Bank in the year 1961, had remained unauthorizedly absent from 21.11.1995 onwards. Quoting health reasons, the employee had submitted an application for voluntary retirement on 28.11.1995 under Clause 29 of the Union Bank of India (Employees') Pension Regulations, 1995 (hereinafter referred to as 'Pension Regulations'). On 13.09.1996, the Bank claims to have communicated to the employee that his request for voluntary retirement cannot be considered and had called upon him to report for work. Thereafter, the Bank had claimed that the employee had abandoned his service, since he had not reported for work continuously, which prompted him to raise an Industrial Dispute in I.D.No.37 of 2013, before the Central Government Industrial Tribunal cum Labour Court, Chennai. ('the Tribunal'). By an Award dated 12.08.2014, the Tribunal had taken into account the voluntary retirement application filed by the employee dated 28.11.1995 and declared that he is deemed to have retired after three months of receipt of his application and thereby, directed the Bank to pay 50% of the retirement benefits due to him, from the date of retirement, till the date of the Award, within one month, with a default clause for payment of interest on the same @ 9% p.a. The challenge to the Award of the Tribunal before the learned Single Judge of this Court in WP.No.2022 of 2015, was dismissed on 09.02.2023. This order of dismissal of the Writ Petition is assailed in this Intra Court Appeal.

3. The learned counsel appearing for the Bank submitted that the employee had abandoned his services from 21.11.1995 and had remained incommunicado. He had also left his house locked and therefore, even if the reply of refusal to accept his voluntary retirement application had been sent to the address where he was not residing, would only be an empty formality and therefore non-sending of the refusal order of his voluntary retirement application, will not entitle him for the deemed approval. He further submitted that the employee was covered only under the provident fund and had not opted for pension and therefore, he will not be covered under the Pension Regulations. This apart, the learned counsel submitted that there is a delay of 16 years in raising the Industrial Dispute and therefore, the dispute is hit by delay and laches.

4. Per contra, the learned counsel appearing for the employee contended that as per the Proviso to Clause 29(2) of the Pension Regulations, the Bank is obligated to inform the voluntary retirement applicant about refusal to grant permission for retirement, before the expiry of three months and in the absence of such intimation, there is a deemed approval and therefore, the Tribunal had correctly come to the conclusion in this regard. He further added that the learned Single Judge had also rightly appreciated the Award of the Tribunal and had dismissed the Writ Petition and therefore, no interference is required to the said order also.

5. The scheme of voluntary retirement by the employees of the Bank is governed under Clause 29 of the Union Bank of India (Employees') Pension Regulations, 1995. The relevant portions of Clause 29, for the appreciation of the facts of this case, are extracted hereunder:-

    “29. Pension on Voluntary Retirement –

    1. On or after the 1st day of November 1993, at any time after the an employee has completed twenty years of qualifying service he may, by giving notice of not less than three months in writing to the appointing authority, retire from service:

    Provided........

    Provided .......

    Provided........

    2. The notice of voluntary retirement given under su

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