Case Note & Summary
The petitioner, Mrs. Sheroo Shapurji (now Mrs. Sheroo Mistry), worked with the Bank of India for 26 years from 1965 to 1991. On 25 February 1991, she submitted a resignation letter citing weak health, effective from 25 May 1991. Subsequently, on 15/23 April 1991, she requested early release from service from 3 May 1991, supported by a doctor's certificate advising retirement due to ill-health. The bank accepted her resignation on 3 May 1991. The petitioner later sought pensionary benefits, claiming that her resignation should be treated as voluntary retirement under the Bank of India Employees' Pension Regulations, 1995. The bank rejected her claim, stating that resignation is not voluntary retirement. The petitioner filed a writ petition in the Bombay High Court. The court examined the relevant regulations, particularly Regulation 14 (voluntary retirement) and Regulation 22 (power to treat resignation as voluntary retirement). The court noted that the petitioner had completed the qualifying service of 20 years and that her resignation was due to ill-health, not any disciplinary action. The court held that the bank had the discretion under Regulation 22 to treat the resignation as voluntary retirement, and the bank's failure to consider the petitioner's request was unreasonable. The court allowed the petition, directing the bank to treat the resignation as voluntary retirement and pay pension from the date of resignation, with arrears and interest at 6% per annum.
Headnote
A) Service Law - Pension - Voluntary Retirement - Resignation on Health Grounds - Regulation 14 of Bank of India Employees' Pension Regulations, 1995 - The petitioner resigned due to ill-health after 26 years of service. The court held that resignation on account of ill-health is not a voluntary retirement under Regulation 14, but the bank's failure to consider the petitioner's request for voluntary retirement and the fact that the resignation was accepted without any disciplinary proceedings entitled the petitioner to pensionary benefits. The court directed the bank to treat the resignation as voluntary retirement and pay pension from the date of resignation. (Paras 1-28) B) Service Law - Pension - Interpretation of Regulations - Regulation 22 of Bank of India Employees' Pension Regulations, 1995 - The court interpreted Regulation 22, which allows the bank to treat resignation as voluntary retirement in certain circumstances. The court held that the bank has the discretion to treat resignation as voluntary retirement, and in this case, the bank's failure to exercise that discretion reasonably led to the court directing the bank to do so. (Paras 15-20) C) Service Law - Pension - Limitation - Writ Petition - The court rejected the bank's contention that the petition was barred by delay and laches, holding that the petitioner's repeated representations and the bank's failure to respond justified the filing of the petition. (Paras 21-23)
Issue of Consideration
Whether the resignation of the petitioner on account of ill-health can be treated as voluntary retirement under Regulation 14 of the Bank of India Employees' Pension Regulations, 1995, entitling her to pensionary benefits.
Final Decision
Writ petition allowed. The respondent bank is directed to treat the resignation of the petitioner as voluntary retirement and pay her pension from the date of resignation, i.e., 3 May 1991, with arrears and interest at 6% per annum from the date of filing of the petition until payment.
Law Points
- Resignation on health grounds can be treated as voluntary retirement
- Pension Regulations 1995
- Regulation 22
- Regulation 14
- Bank of India Employees' Pension Regulations
- 1995
