Bombay High Court Dismisses Appeal of Employees Seeking Pension Under Siemens Employees' Superannuation Fund Scheme. Employees Who Resigned Voluntarily Before Completion of Five Years of Service After Scheme's Introduction Not Entitled to Pension Benefits.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The case involves an appeal by 12 employees of Siemens Limited against a judgment of a single Judge of the Bombay High Court dated 24.4.2003, which set aside an order of the Industrial Court dated 4.7.2001. The Industrial Court had directed the employer to pay pension at the rate of Rs.188 per month to the employees from the date they attained the age of 60 years. The employees had filed a complaint under item nos.5 and 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU & PULP Act, 1971). The undisputed facts are that the pension scheme 'Siemens Employees' Superannuation Fund' came into force on 1.10.1992. All 12 employees resigned by agreement/consent of the employer between May 1994 and November 1995. None of the employees had completed five years of service after the scheme's introduction. The legal issue was whether the employees were entitled to pension under the scheme. The learned single Judge held that they were not entitled to pension and set aside the Industrial Court's order. The Division Bench, in appeal, upheld the single Judge's decision, finding that the employees did not meet the eligibility condition of five years' service after the scheme's commencement. The appeal was dismissed with no order as to costs.

Headnote

A) Pension Law - Eligibility for Pension - Completion of Qualifying Service - The pension scheme 'Siemens Employees' Superannuation Fund' came into force on 1.10.1992. The scheme required completion of five years of service after its introduction for eligibility. All 12 employees resigned between May 1994 and November 1995, none having completed five years. The Industrial Court had directed payment of pension at Rs.188 per month, but the High Court held that the employees were not entitled to pension as they did not fulfill the eligibility condition of five years' service after the scheme's commencement. The appeal was dismissed. (Paras 1-3)

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Issue of Consideration

Whether the 12 employees who resigned between May 1994 and November 1995 are entitled to pension under the Siemens Employees' Superannuation Fund Scheme which came into force on 1.10.1992, given that none of them completed five years of service after the scheme's introduction.

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Final Decision

The appeal is dismissed. The judgment of the learned single Judge dated 24.4.2003 is upheld. No order as to costs.

Law Points

  • Pension scheme interpretation
  • Eligibility conditions
  • Voluntary resignation
  • Completion of qualifying service
  • Industrial Court jurisdiction
  • Unfair labour practice
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Case Details

2006 LawText (BOM) (11) 40

APPEAL NO.1058 OF 2003 IN WRIT PETITION NO.2285 OF 2001

2006-11-24

R.M. Lodha, S.A. Bobde

Mr. R.D. Bhat for the appellants. Mr. P.K. Rele with Mr. V.N. Tayade and Mr. R.P. Rele i/b. Mr. Piyush Shah for the respondent.

Shri V. Venugopal and 11 others

Siemens Limited

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Nature of Litigation

Appeal against judgment of single Judge in Writ Petition challenging Industrial Court order directing employer to pay pension.

Remedy Sought

The employees sought to restore the Industrial Court's order directing payment of pension at Rs.188 per month.

Filing Reason

The employees were aggrieved by the single Judge's judgment setting aside the Industrial Court's order granting pension.

Previous Decisions

Industrial Court order dated 4.7.2001 directed employer to pay pension; single Judge set aside that order on 24.4.2003.

Issues

Whether the 12 employees are entitled to pension under the Siemens Employees' Superannuation Fund Scheme despite not completing five years of service after the scheme's introduction.

Submissions/Arguments

Appellants argued that they are entitled to pension under the scheme. Respondent argued that employees did not fulfill the eligibility condition of five years' service after the scheme's commencement.

Ratio Decidendi

Employees who resigned before completing five years of service after the introduction of the pension scheme are not entitled to pension under the scheme, as they did not meet the eligibility condition.

Judgment Excerpts

The learned single Judge held that the employees were not entitled to pension under the scheme entitled 'Siemens Employees’ Superannuation Fund' and, consequently, by judgement dated 24.4.2003, set aside the order of the Industrial Court dated 4.7.2001. None of the employees had completed five years of service after the scheme's introduction.

Procedural History

Industrial Court order dated 4.7.2001 directed employer to pay pension. Employees challenged that order by filing Writ Petition No.2285 of 2001. Single Judge set aside Industrial Court order on 24.4.2003. Employees filed Appeal No.1058 of 2003 against the single Judge's judgment.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Schedule IV, Item 5, Item 9
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