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IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.71 OF 2012

STATE BANK OF INDIA & ANR. APPELLANT(S)

VERSUS

SACHIV AGRA VANIJIYIK BANK

KARAMCHARI (VETAN BHOGI) SAHKARI RIN

EVAM SAKH SAMITI LIMITED & ORS.

RESPONDENT(S)

O R D E R

1.

The 2nd respondent was an employee of the appellant Bank. He

availed a loan from the 1st respondent-Cooperative Society. He

entered into an agreement with the appellant Bank. It is the case

of the appellant Bank that in terms of the agreement, the appellant

Bank was obliged to deduct amounts due towards the loan taken by

the 2nd respondent from the salary. A Voluntary Retirement Scheme

(for short 'VRS') was introduced in the Bank. The 2nd respondent

sought to avail the benefit of the Scheme. The appellant Bank

accepted the application filed by the 2nd respondent for voluntary

retirement. Consequently, the appellant bank paid the entire

benefits payable under the Voluntary Retirement Scheme to the 2nd

respondent. The 1st respondent-Cooperative Society approached the

Registrar under Section 40(3) of the Uttar Pradesh Cooperative

Societ