The court upheld the 15-year period for restoration of commuted pension as neither arbitrary nor unreasonable, affirming binding legal precedent.

JUDGMENT :

Subhash Vidyarthi, J.

1. Heard Sri Salik Ram Yadav, the learned counsel for the petitioner and Sri Prashant Kumar Srivastava for the opposite parties.

2. By means of the instant writ petition filed under Article 226 of the Constitution of India , the petitioner has challenged the validity of a note appended to Regulation 41 of Bank of Baroda (Employees’)

Pension Regulation, 1995 which reads as under: -

“(2) An employee who had commuted the admissible portion of pension is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.”

3. The petitioner has sought a direction to the opposite party to restore full pension of the petitioner immediately after expiry of 9.81 years, instead of 15 years as provided in the aforesaid provision.

4. The petitioner retired from Bank of Baroda on 31.03.2013 and he got1/3^rd of his pension commuted in accordance with the following provisions contained in Chapter VIII of Bank of Baroda (Employees’)Pension Regulations, 1995: -

“41. Commutation.

(1) An employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one-third of his pension:

Provided that in respect of an employee who is governed by sub- regulation (5) of Regulation 3 of these regulations, the family of such employee shall also be entitled to commute for a lump sum payment a fraction not exceeding one-third of the pension admissible to the employee.

(2) An employee shall indicate the fraction of pension, which he desires to commute, and may either indicate the maximum limit of one-third pension or such lower limit, as he may desire to commute.

(3) If fraction of pension to be commuted results in fraction of rupee, such fraction of a rupee shall be ignored for the purpose of commutation.

(4) The lump sum payable to an applicant shall be calculated in accordance with the Table given below.

TABLE Commutation values for a pension of Re. one per annum

Notes:

(1) The Table above indicates the commuted value of pension expressed as number of years’ purchase with reference to the age of the pensioner as on his next birthday. The commuted value in the case of an employee retiring at the age of fifty eight years is 10.46 years’ purchase and, therefore, if he commutes rupees one hundred from his pension within one year of retirement, the lump sum amount payable to him works out to Rs.100 X 10.46 X 12 =Rs. 12,552.

(2) An employee who had commuted the admissible portion of pension is entitled to have the commuted portion of the pension restored after the expiry of a period of fifteen years from the date of commutation.

(3)…

(4)…

(5)…

(6)…”

5. As per the provisions contained in the aforesaid Regulation, the petitioner would become entitled to restoration of full pension after expiry of a period of 15 years from the date of commutation i.e. with effect from 01.04.2028, which is clearly mentioned in the pension payment order dated 01.04.2013. The petitioner has challenged validity of the aforesaid Regulation and he has submitted that the amount received by him by way of commutation, has been set off within 9.81 years and he is entitled to restoration of full pension after the aforesaid period. The petitioner has submitted that the deduction of pension for 15 years would mean that the opposite parties are charging interest on the commuted amount at the rate of 8% p