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IN THE HIGH COURT OF PUNJAB AND HARYANA
SATISH KUMAR MITTAL, HARINDER SINGH SIDHU, JJ.
Punjab National Bank and Others - Appellant
Versus
Virender Singh Siwach - Respondent
LPA No. 735 of 2012 (O and M)
Decided On : 09-10-2015
Advocate Appeared:
For the Appellant :Surav Verma, Advocate
For the Respondent:R.K. Malik, Senior Advocate and Vijay Dahiya, Advocate
The main legal principle established in the judgment is the significance of distinguishing between resignation and voluntary retirement in determining pension entitlement under the applicable regulations and settlements.
Headnote:
resignation - pension option - Banking Companies (Acquisition of Transfer of Undertakings) Act, 1970, Pension Regulation, 1995 - The court discussed the interpretation of resignation and retirement under the Punjab National Bank (Employees) Pension Regulations, 1995 and its applicability to the case. The court also considered the relevance of the Joint Note/Settlement dated 27.04.2010 and its impact on the eligibility of the respondent to exercise the second pension option. The court highlighted the distinction between resignation and voluntary retirement and its significance in determining pension entitlement.
Fact of the Case:
The respondent, a Security Officer in the appellant-Bank, submitted a resignation letter citing ill health and non-payment of salary. He requested that his resignation be treated as three months' notice and expressed interest in exercising a second pension option if offered. The Bank accepted his resignation and informed him of his voluntary retirement.
Finding of the Court:
The court found that the respondent's resignation was in fact a request for voluntary retirement, as evidenced by the circumstances and subsequent actions of the Bank. The court emphasized the distinction between resignation and voluntary retirement and held that the respondent was eligible for pension benefits.
Issues: The key issues revolved around the interpretation of the respondent's resignation, its classification as voluntary retirement, and the applicability of the second pension option under the Joint Note/Settlement dated 27.04.2010.
Ratio Decidendi: The court relied on the distinction between resignation and voluntary retirement, as well as the circumstances and subsequent actions of the Bank, to determine the true nature of the respondent's resignation. The court also emphasized the importance of minimum qualifying service and fulfillment of conditions for pension entitlement.
Final Decision: The court dismissed the appeal, affirming the respondent's eligibility for pension benefits based on the interpretation of his resignation as voluntary retirement and the applicability of the second pension option.
Based on the provided legal document, the main legal principle established is the importance of accurately distinguishing between resignation and voluntary retirement when determining pension entitlement under applicable regulations and settlements. The court emphasized that the true nature of an employee's departure from service—whether it is resignation or voluntary retirement—must be ascertained based on the circumstances and intentions expressed at the time of separation.
The judgment clarified that a resignation, if expressed with the intention of seeking voluntary retirement, and supported by subsequent actions and circumstances, can be treated as voluntary retirement for pension eligibility purposes. Conversely, a resignation that is conditional or not clearly intended as a retirement can lead to disqualification from pension benefits.
Furthermore, the interpretation of the terms used in the relevant regulations and the context in which the employee’s communication was made play a crucial role in this determination. The court also highlighted that the fulfillment of minimum qualifying service and other conditions are essential for pension entitlement, regardless of whether the departure was labeled as resignation or retirement, provided the employee’s intent aligns with voluntary retirement.
The judgment underscores that procedural formalities and the specific wording of resignation letters are less determinative than the actual intent and surrounding circumstances. This approach ensures that employees who have served long and dedicated tenures are not unfairly deprived of their pension rights due to technicalities, especially when their actions and circumstances clearly indicate an intention to retire voluntarily.
HARINDER SINGH SIDHU, J.
1. This intra Court appeal under Clause X of the Letters Patent has been filed against the judgment dated 23.02.2012 of the learned Single Judge, whereby, CWP No. 8210 of 2011 filed by the respondent seeking quashing of order dated 01.02.2011 (Annexure P-17) declining the petitioner's request to exercise the second pension option and thereby denying him pensionary benefits, has been allowed.
2. The respondent was appointed as Security Officer in the appellant-Bank on 01.01.1985. Thereafter, he worked at various places and offices of the appellant Bank. On 01.07.2009 (Annexure P-2), he submitted a request for resignation from Bank service stating that in the past one year his service in the Bank had not been worthwhile. He had stated that due to his continuous ill health he had been allowed leave by the Bank, but had not been paid four months salary despite his repeated requests. He stated that though he had intended to work in the Bank after his recovery, but the Bank did not consider his circumstances with objectivity and he had been subjected to four transfers within a period of one year. He requested that the communication be treated as three months' notice as prescribed under the Rules w.e.f. 01.07.2009. As wage negotiations were under way, he requested that in case it was decided to give a second option for pension to the Bank employees, he would like opt for the same.
3. The appellant-Bank replied vide letter 20.07.2009 observing that as the resignation tendered by the respondent appeared to be conditional, hence the same could not be accepted. The respondent was advised to submit unconditional resignation from Bank service. The respondent replied vide letter dated 20.07.2009 stating that the resignation letter dated 01.07.2009 had been misconstrued, that he had simply communicated the reasons for resigning and that there were no conditions specified in his resignation letter. He reiterated his request that his resignation be accepted from the due date. Vide letter dated 15.09.2009, the respondent was informed that in terms of his notice dated 01.07.2009, his resignation from Bank service was accepted by the competent authority w.e.f. 30.09.2009, the date on which three months' notice period expired.
4. Before the acceptance of his resignation, vide letter dated 10.9.2009 the respondent was informed that as he is retiring voluntarily, in terms of the General Service Administration Circular dated 18.3.2009 he could purchase the furniture items provided at his residence and was asked to credit an amount of Rs. 11264/- in the relevant account if he wished to purchase the same. The dues of the respondent were paid after recovering the sum of Rs. 11,264/- which was the purchase cost of the furniture. The petitioner was, thereafter, also issued a certificate dated 13.11.2009 (Annexure P-8) stating that he had voluntarily retired on 30.09.2009 as Deputy Manager Security.
5. Initially, a settlement was signed at the industry level on 29.10.1993, pursuant to which, the appellant-Bank, in exercise of power conferred on it under Section 19 of the Banking Companies (Acquisition of Transfer of Undertakings) Act, 1970 framed the statutory PNB (Employees), Pension Regulations, 1995 under which pension was offered to eligible employees in lieu of Bank's Contribution to Provident Fund (CPF). The option in terms of Regulation 3(3)(b), of the Pension Regulation, 1995 was required to be exercised by the eligible employees within 120 days from 29.09.1995, the date when the Statutory Regulations were notified in the Gazette of India. The respondent, who was in service then, did not opt for pension and continued to remain in CPF Scheme.
6. On the persistent demand of the Workmen Union at Industry Level to provide one more option for pension to the employees who failed to exercise their option for pension in the year 1995, the Indian Banks Association agreed to accept the demand of Bank Union subject to certain term
