ORDER

1. Whether Reporters of Local newspapers may be allowed to see the Judgments? : Yes

2. Whether the copies of judgment may be Marked to Law Reporters/Journals? : Yes

3. Whether His Lordship wishes to see the fair copy of the Judgment? : Yes

ORDER:

This writ petition is filed declaring the letters dated 29.03.2001 and 06.11.2001 passed by the respondents respectively as illegal and arbitrary, and consequently direct the respondents to pay an amount of Rs.9,48,474/- to the petitioners under the Voluntary Retirement Scheme (for short ‘VRS’) pertaining to late Sri K.S.R.Sastry.

2. The brief facts of the case are as follows :-

(a) Sri K.S.R.Sastry, who is the husband of the 1st petitioner and father of petitioners 2 to 4 joined in the service of the respondents’ Bank on 09.11.1971 and died on 27.02.2001.

(b) The State Bank of India announced VRS for its employees, vide Circular No.Per/39/200-2001, dated 30.12.2000, who have put in 15 years of service or have completed 40 years of age as on 31.12.2000. Mr.K.S.R.Sastry (hereinafter referred to as ‘the applicant’) applied for VRS on 15.01.2001 and his application was sent to the Deputy General Manager, State Bank of India, Hyderabad Circle through Branch Manager, Fathekhanpet Branch, State Bank of India, Nellore.

(c) The Branch Manager, after a discrete enquiry, found that the applicant was eligible for making the application for VRS and accordingly the application of the applicant was forwarded to the Deputy General Manager and Circle Development Officer, who accepted the said application and communicated the same to the Branch Manager, S.B.I., Fatekhanpet Branch, Nellore, vide Sl.No.2, dated 03.03.2001. However, the applicant died on 27.02.2001 due to a heart attack, and the same was informed to the Branch Manager, Fathekhanpet Branch, Nellore.

(d) On 18.03.2001, the 1st petitioner made an application to the Branch Manager requesting payment of the benefits accrued under VRS and other benefits pertaining to the applicant. The Assistant Manager, Region-II, Zonal Office, Tirupathi, vide proceedings 29.03.2001, stated that the effective date of retirement under VRS was 31.03.2001 and that the VRS application of the applicant has become invalid; therefore, the same cannot be considered.

(e) The 1st petitioner again addressed a letter dated 01.06.2001 to the 6th respondent stating that once the application for VRS was accepted and the applicant is no more, the benefits have to be extended to the heirs of the deceased employee. The Branch Manager replied on 16.11.2001, stating that, since the applicant’s death occurred before the relevant date i.e., 31.03.2001, the VRS application became invalid and cannot be considered under SBI VRS. Aggrieved thereby, the present writ petition is filed.

3. Learned counsel appearing for the petitioner submits that the applicant made an application on 15.01.2001 seeking VRS and that the applicant died on 27.02.2001 due to a heart attack. The respondents are bound to accept the applicant’s application, since the applicant made the application before the relevant date. However, the respondents refused to accept the VRS application. Therefore, appropriate orders be passed in the writ petition by setting aside the impugned proceedings and directing the respondents to pay an amount of Rs.9,48,474/- to the petitioners under VRS, as they are the legal heirs of the applicant.

4. The respondents filed a counter affidavit stating as follows :-

(a) The applicant joined the service of the Respondent Bank in the year 1971 and continued till his death on 27.2.2001. The State Bank of India announced VRS for its employees vide Circular Per/39/2000-2001 dated 30.12.2000.

(b) The applicant made an application to the Deputy General Manager and Circle Development Officer, Local Head Office, Hyderabad, on 15.01.2001 seeking VRS and the same was forwarded to the Assistant General Manager, Region-II, State Bank of India, Zonal Office, Tirupati, on 15.1.2001 for acceptance