Case Note & Summary
The case involves an appeal by the Central Bank of India against a judgment of the Rajasthan High Court which allowed the writ petition of the respondent, Tara Chand, granting him pro-rata pension upon his voluntary retirement under the Central Bank of India Employees Voluntary Retirement Scheme, 2001. The respondent had opted for the pension scheme in 1995 and applied for voluntary retirement on 23.02.2001, which was accepted by the Bank. However, the Bank refused to grant pro-rata pension on 12.09.2001, leading to the filing of a writ petition. The Single Judge and the Division Bench of the High Court both ruled in favor of the respondent, relying on Clause 6(ii) of the Scheme and Regulation 14 of the Pension Regulations. The Supreme Court considered the eligibility criteria under the Scheme, which allowed employees with 15 years of service or 40 years of age to seek voluntary retirement. The respondent, being over 40 years of age and having completed 11 years of service, was eligible. The Court examined Clause 6(ii) of the Scheme, which states that pension is payable as per the Pension Regulations. Regulation 14 provides that an employee who has rendered a minimum of 10 years of service qualifies for pension, subject to other conditions. The Court noted that the definition of 'retirement' under the Regulations includes voluntary retirement under Regulation 29, and the respondent's retirement under the Scheme was akin to such retirement. The Court also considered the amendment to Regulation 28, which from 01.09.2000 allowed pension for those with 15 years of service, but held that the respondent was covered by Regulation 14. The Supreme Court dismissed the appeal, affirming the High Court's decision and directing the Bank to pay pro-rata pension to the respondent.
Headnote
A) Service Law - Voluntary Retirement Scheme - Pension Entitlement - Clause 6(ii) of Central Bank of India Employees Voluntary Retirement Scheme, 2001 read with Regulation 14 of Central Bank of India (Employees') Pension Regulations, 1995 - Employee who completed 11 years of service and was over 40 years of age held eligible for pension - Court interpreted that qualifying service of 10 years under Regulation 14 is sufficient, and the employee's retirement under the Scheme qualifies as retirement under the Regulations - Held that the employee is entitled to pro-rata pension (Paras 7-14).
Issue of Consideration
Whether an employee who voluntarily retired under the Central Bank of India Employees Voluntary Retirement Scheme, 2001, having completed 11 years of service and being over 40 years of age, is entitled to pro-rata pension under the Central Bank of India (Employees') Pension Regulations, 1995.
Final Decision
Appeal dismissed. The Bank is directed to pay pro-rata pension to the respondent in accordance with the Scheme, 2001 and Pension Regulations, 1995.
Law Points
- Eligibility for pension under voluntary retirement scheme
- Interpretation of pension regulations
- Qualifying service for pension
- Pro-rata pension entitlement
