Case Note & Summary
The dispute arose between a bank and its employee regarding the retirement age. The respondent, who was an Assistant Director in the Small Industries Development Organisation, was absorbed into the Punjab National Bank on 10.3.1972 after a period of deputation. The bank's regulations stipulated that employees absorbed after nationalisation would retire at 58 years, while those absorbed before would retire at 60 years. The respondent completed 58 years on 7.4.1990 and was retired on 30.4.1990. The respondent argued for retirement at 60 years based on a precedent involving another employee, H. C. Nakra, who was treated as a lateral transfer. However, the court found that the respondent's case was distinctly different as he was absorbed and not transferred, and the Nakra case was deemed a special exception. The court emphasized that Article 14 could not be invoked to contravene established regulations. The High Court's decision to grant the respondent the benefit of the Nakra case was overturned, and the appeal was allowed, setting aside the High Court's judgment without costs.
Headnote
A) Employment Law - Retirement Age Regulations - Applicability of Retirement Age - Punjab National Bank (Officers) Service Regulations, 1979, Section 1 - The respondent, absorbed into the Bank's service post-nationalisation, was subject to the retirement age of 58 years as per the Bank's regulations. The court held that the respondent could not claim the benefit of retirement at 60 years as he was not an employee prior to the relevant date and the precedent case was treated as a special case, not applicable to him (Paras 1-3).
Issue of Consideration
Whether the respondent was entitled to retirement at the age of 60 years based on a precedent case.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and ruled that the respondent was not entitled to retirement at the age of 60 years as per the applicable regulations.
Law Points
- Retirement age regulations
- Absorption of employees
- Lateral transfer
- Special case treatment
- Article 14 applicability
