Case Note & Summary
The petitioner, Rugmini Ganesh, was appointed as a clerk in the State Bank of India on 01/09/1980 on probation and was confirmed on 01/03/1981. She took voluntary retirement under the Voluntary Retirement Scheme (VRS) on 31/03/2001. The Bank did not deny pension on the ground of VRS but denied it based on Rule 22 of the State Bank of India Employees' Pension Fund Rules. The Bank contended that under Rule 22(1)(a), a member is entitled to pension after completing 20 years of pensionable service only if he has attained the age of 50 years, and since the petitioner was below 50 at retirement, she was not eligible. The petitioner argued that she had completed 20 years of pensionable service and was entitled under Rule 22(1)(c), which allows pension after 20 years of service at the member's request in writing, irrespective of age. The Court examined Rule 22 and noted that clause (c) applies to a member who has completed 20 years of pensionable service and retires at his own request in writing, without any age condition. The Court found that the petitioner's voluntary retirement under VRS was a retirement at her own request, thus falling under clause (c). The Court held that the petitioner was entitled to pension from the date of retirement and directed the Bank to pay pension with arrears and interest at 6% per annum from the date of retirement until payment. The writ petition was allowed with rule made absolute.
Headnote
A) Service Law - Pension - Voluntary Retirement - Rule 22 of State Bank of India Employees' Pension Fund Rules - Entitlement to pension after completing 20 years of pensionable service irrespective of age - The petitioner, a clerk, was appointed on 01/09/1980, confirmed on 01/03/1981, and took VRS on 31/03/2001, completing over 20 years of service. The Bank denied pension under Rule 22(1)(a) requiring age of 50 years. The Court held that the petitioner falls under Rule 22(1)(c) which grants pension after 20 years of pensionable service at the member's request in writing, without age condition. The Court directed the Bank to grant pension from the date of retirement with arrears and interest at 6% per annum. (Paras 2-5)
Issue of Consideration
Whether the petitioner, who took voluntary retirement under VRS after completing 20 years of pensionable service, is entitled to pension under Rule 22 of the State Bank of India Employees' Pension Fund Rules.
Final Decision
The Court allowed the writ petition and directed the respondent Bank to grant pension to the petitioner from the date of her retirement, i.e., 31/03/2001, with arrears and interest at 6% per annum from the date of retirement until payment. Rule made absolute.
Law Points
- Pension entitlement
- Voluntary Retirement Scheme
- Rule 22 of State Bank of India Employees' Pension Fund Rules
- Interpretation of service conditions
- Liberal construction of pension rules
