Supreme Court Dismisses Appeal in Pension Dispute Under Industrial Disputes Act and Pension Fund Rules. Employee's Claim for Pension Failed Due to Insufficient Service and Voluntary Abandonment, Not Voluntary Retirement, Under Rule 22 of State Bank of India Employees' Pension Fund Rules, 1955.

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Case Note & Summary

The dispute arose from the appellant's claim for pensionary benefits after his service with the respondent bank ended. The appellant was appointed as a clerk in 1978, confirmed in 1979, and ceased employment in 1998 after unauthorized absence, leading the bank to declare voluntary abandonment. In 2008, the bank declared him voluntarily retired. The appellant filed a writ petition in 2008, was directed to approach the Labour Court, and filed a claim petition under Section 33C(2) of the Industrial Disputes Act, 1947 in 2010, which was dismissed for lack of jurisdiction as it involved disputed facts and no pre-existing right. Subsequent writ petitions and appeals to the High Court were also dismissed. The core legal issues were whether the claim under Section 33C(2) was maintainable and whether the appellant was entitled to pension under the State Bank of India Employees' Pension Fund Rules, 1955. The appellant argued eligibility under Rule 22(i)(c) after completing 20 years of service, while the respondent contended ineligibility under Rule 22(i)(a) due to insufficient service and age, and that the claim was not maintainable under Section 33C(2). The Supreme Court analyzed the case on merits despite the lower courts' dismissal on technical grounds. The Court examined Rules 20 and 7 of the Pension Fund Rules, holding that pensionable service is reckoned from the date of confirmation, resulting in less than 20 years of service for the appellant. It also distinguished voluntary abandonment from voluntary retirement, finding the appellant's case involved abandonment due to unauthorized absence, not retirement under Rule 22(i)(c). The Court concluded the appellant failed to meet the conditions for pension under Rule 22(i)(c) and upheld the dismissal of the claim.

Headnote

A) Industrial Disputes - Section 33C(2) - Maintainability of Claim Petition - Industrial Disputes Act, 1947, Section 33C(2) - The appellant filed a claim petition under Section 33C(2) for computation of pension benefits, but the Labour Court and High Court dismissed it as non-maintainable, holding that proceedings under Section 33C(2) are execution proceedings requiring a pre-existing right, which was disputed. The Supreme Court noted this technical ground but proceeded to decide the case on merits. (Paras 5, 6, 7, 17)

B) Pension Law - Eligibility for Pension - Rule 22 of Pension Fund Rules - State Bank of India Employees' Pension Fund Rules, 1955, Rule 22 - The appellant claimed pension under Rule 22(i)(c) after completing 20 years of service, but the respondent argued he was ineligible under Rule 22(i)(a) due to insufficient service and age. The Court examined the scope of Rule 22(i)(c) and Rule 22(i)(a) to determine eligibility. (Paras 8, 9, 12, 18, 19, 21)

C) Pension Law - Computation of Pensionable Service - Rules 20 and 7 of Pension Fund Rules - State Bank of India Employees' Pension Fund Rules, 1955, Rules 20 and 7 - The appellant contended he completed 20 years from appointment, but the Court held that pensionable service is reckoned from the date of confirmation as per Rules 20 and 7, resulting in less than 20 years of service, thus failing the first condition under Rule 22(i)(c). (Paras 20, 23, 24)

D) Employment Law - Voluntary Abandonment vs Voluntary Retirement - Rule 22(i)(c) of Pension Fund Rules - State Bank of India Employees' Pension Fund Rules, 1955, Rule 22(i)(c) - The appellant argued for voluntary retirement under Rule 22(i)(c), but the Court found the case involved voluntary abandonment of service due to unauthorized absence and notices from the bank, not voluntary retirement, thus failing the second condition under Rule 22(i)(c). Held that reliance on Rule 22(i)(c) was misplaced. (Paras 14, 25, 26)

Issue of Consideration: Whether the appellant is entitled to pensionary benefits under the State Bank of India Employees' Pension Fund Rules, 1955, and whether the claim petition under Section 33C(2) of the Industrial Disputes Act, 1947 was maintainable

Final Decision

The Supreme Court dismissed the appeal, upholding the decisions of the lower courts, and held that the appellant was not entitled to pension as he failed to meet the conditions under Rule 22(i)(c) of the Pension Fund Rules

2026 LawText (SC) (04) 26

Civil Appeal No. 4279 of 2026 (Arising Out of S.L.P. (Civil) No.12462 of 2022)

2026-04-08

PRASHANT KUMAR MISHRA J. , N.V. ANJARIA J.

2026 INSC 333

K.G. Seshadri

The Trustees of State Bank of India and Another

Nature of Litigation: Claim for pensionary benefits by an employee against the bank

Remedy Sought

The appellant sought computation of pension benefits and interest from the Labour Court under Section 33C(2) of the Industrial Disputes Act, 1947

Filing Reason

The appellant was aggrieved by the bank's letter declaring voluntary retirement and denial of pension

Previous Decisions

Labour Court dismissed the claim petition for lack of jurisdiction; High Court Single Judge and Division Bench upheld the dismissal

Issues

Whether the appellant is entitled to pensionary benefits under the State Bank of India Employees' Pension Fund Rules, 1955 Whether the claim petition under Section 33C(2) of the Industrial Disputes Act, 1947 was maintainable

Submissions/Arguments

Appellant argued eligibility under Rule 22(i)(c) after completing 20 years of service and reliance on precedents Respondent argued ineligibility under Rule 22(i)(a) due to insufficient service and age, and non-maintainability of claim under Section 33C(2)

Ratio Decidendi

Proceedings under Section 33C(2) of the Industrial Disputes Act, 1947 are execution proceedings requiring a pre-existing right; for pension under Rule 22(i)(c) of the State Bank of India Employees' Pension Fund Rules, 1955, an employee must complete 20 years of pensionable service from the date of confirmation and obtain voluntary retirement, not voluntary abandonment

Judgment Excerpts

"A member shall be entitled to a pension under these rules on retiring from the Bank's service - (c) after having completed twenty years pensionable service, irrespective of the age he shall have attained at his request in writing." "Save as provided in rule 21, with effect from 1.11.93, service rendered by an employee/member from the date of his admission to the fund upto the date of retirement in terms of rule 22 infra from the Bank's service shall be reckoned as service for pension."

Procedural History

Appellant filed writ petition in 2008; High Court directed to approach Labour Court in 2009; Labour Court dismissed claim petition in 2010; appellant filed writ petition in 2010; Single Judge dismissed in 2019; Division Bench dismissed appeal in 2022; Supreme Court granted leave and heard appeal

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