Indian Bank rep. by its Chairperson and Managing Director 66, Rajaji Salai Chennai 600 001 v. The General Manager (P&HR) Indian Bank, Head Office 66, Rajaji Salai Chennai 600 001

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 11.6.2009CORAMTHE HON'BLE MR.JUSTICE S.J.MUKHOPADHAYAANDTHE HON'BLE MR.JUSTICE RAJA ELANGOW.A.No.3895 of 2003 and W.P.Nos.6751, 11127& 22378 of 2001, 2413 & 2414 of 20041. Indian Bank rep. by its Chairperson and Managing Director 66, Rajaji Salai Chennai 600 001.2. The General Manager (P&HR) Indian Bank, Head Office 66, Rajaji Salai Chennai 600 001. .. Petitioners in WA.3895/033. Indian Bank Voluntary Retiree's Welfare Association (Registered) Rep.by its President N.S.Rajan Old No.10 New No.19, Second Street Postal Colony, West Mambalam, Chennai-33 ...Petitioner in W.P.6751/01S.S.Vasan .. Petitioner in W.P.11127/01Punjab National Bank Retired Employees Association(Reg. No.18/01) Rep.by its Secretary,Flat No.14,Raja Apartments,Door No.15, Balakrishna Naicken Street,West Mamabalam, Chennai 600 033. .. Petitioner in W.P.22378/01N.SrininvasanN.SampathK.SrinivasanM.RamasastruluP.PadmanabhanP.K.ShantharamMrs.Suseela VenkataramanV.K.VenugopalMallikarjuna Rao .. Petitioners in W.P.2413/04 https://hcservices.ecourts.gov.in/hcservices/ S.KrishnamoorthyV.R.Balasubramanian .. Petitioner in W.P.2414/04Vs.1. K.Radhakrishnan2. Indian Bank Retiree's Association rep. by its General Secretary 110, Sunny Palace Himayat Nagar, Hyderabad 29.3. All India Indian Bank Retirees' Association rep. by its General Secretary No.25, Second Line Beach Chennai 600 001. .. Respondents in WA.3895/03(R2 & R3 are impleaded vide orderdated 11.6.2009 in WAMP Nos.2599of 2004 & 1741 of 2005 respectively)Union of India rep.by its Secretary(Banking Ministry of Finance, New Delhi.Indian Banks Association Rep.by its SecretaryStadium House, 6th Floor, Block 3Veer Nariman Road,Mumbai 400 020.The Management of India Bank Rep.by its Chairman & Managing DirectorCentral OfficeRajaji Salai, Chennai 600 001 .. Respondents in W.P.6751/01Punjab National Bank rep.by its Chairman & Managing DirectorHead Office.7,Bhikhaiji Cama PlaceNew Delhi-110 066.The General Manager(Personnel)Punjab National Bank Head Office7,Bhikhaiji Cama PlaceNew Delhi-110 066.The Zonal ManagerPunjab National BankZonal Office:160, Greams Road,Chennai 600 006 https://hcservices.ecourts.gov.in/hcservices/ The Senior Regional ManagerPunjab National Bank Regional Office160, Greams Road,Chennai 600 006 ...Respondents 1 to 4 in W.P.11127/01 & W.P.22378/01The Deputy General Manager(Personnel)Punjab National Bank,No.7, Bhikhaiji Cama PlaceNew Delhi -110 066 ..Respondent 5 in W.P.22378/01Indian Overseas Bank Rep.by The Chairman & Manging DirectorIndian Overseas Bank,Central Office,762, Anna Salai,Chennai 600 002.The Competent Authorityfor Pension Regulations(General Manager)Indian Overseas Bank Central Office, 762, Anna Salai,Chennai 600 002. ...Respondents in W.P.2413/04 & 2414/04Appeal against the order dated 6.10.2003 made in W.P.No.11383 of2001 on the file of this Court. The follows writ petitions filedunder Article 226 of Constitution of India.WP.11383/01: praying to issue a writ of mandamus directing therespondents to pay monthly pension to the petitioner in accordancewith Regulation 29 of the Indian bank Employees Pension Regulations1995 at the rate which is on par with the rate of pension payable tothe employees of the respondents who retire under normal VRS.WP.6751/01: Praying to issue a writ of mandamus directing the 3rdrespondent to pay pension commutation and other benefits to theemployees retired under the Indian Bank Employees VoluntaryRetirement Scheme 2000 by extending the benefit under Regulation 29(5) of the Indian Bank (Employees)Pension Regulations 1995.WP.11127/01: Praying to issue a writ of declaration that the actionof the respondents in denying to the petitioner the benefit ofRegulation 29(5) of the PNB(Employees)Pension Regulation 1995, nonpayment of interest on belated payment of Gratuity and denial of thebenefit of leave fare concession are all illegal,discriminatory,arbitrary and violative of Article 14 and 16 of the Constitution ofIndia so far as petitioner concerned and consequently direct therespondents to extend all the benefits under Regulation 29(5) of PNB(Employees) Pension Regulation 1995 read with PNB Employees Voluntary https://hcservices.ecourts.gov.in/hcservices/ Retirement Scheme 2000 dated.29.9.2000 based on which VRS applicationwas made and accepted,grant the benefit of LFC to the petitioner,paygratuity together with interest for the belated payment.WP.No.22378/01: Praying to issue a writ of declaration that theaction of the 5th respondent in issuing a circular No.1765dt.19.12.2000 thereby denying to the members of the petitioner whosenames are given in the typed set of papers the benefit of Regulation29(5) of the PNB(Employees)Pension Regulations 1995, denial of thebenefit of Leave Fare Concession are all illegal, discriminatory,arbitrary and violative of Article 14 and 16 of the Constitution ofIndia and consequently direct the respondents to extend all thebenefits under Regulation 29(5) of PNB (Employees)Pension Regulations1995 read with PNB Employees Voluntary Retirement Scheme 2000dated.29.9.2000 based on which VRS application was made and acceptedand grant the benefit of LFC to eligible members of the petitioner'sassociation.WP.No.2413 & 2414/04: Praying to issue a writ of mandamus directingthe second respondent to pay the petitioners revised amount of BasicPension and the consequent difference in the amount of commutation ofPension resulting from the increase in qualifying service as laiddown in sub regulation(5) of Regulation 29 of Indian Overseas Bank(Employees')Pension Regulations 1995, with interest at a rate to bedetermined by this Court.For Appellants : Mr.M.Vijayan For M/s. King & PatridgeFor Respondents : Mr.R.Viduthalai, S.C. For Mr.M.Rangarajulu & Mr.L.N.PragasamW.P.No.6751/09:For Petitioner : Mr.R.Viduthalai, SC for Mr.M.RamamoorthyFor Respondents : Mr.M.Vijayan for M/s.King & Partridge for R2 & R3 Mr.D.Sreenivasan, SC, GSC for R1W.P.No.11127/07 & W.P.NO.22378/01:For Petitioner : Mr.C.K.Chandrasekar for M/s.Row & ReddyFor Respondents : Mr.S.Jayaraman https://hcservices.ecourts.gov.in/hcservices/ W.P.NO.2413 & 2414/04:For Petitioners: Mr.C.R.ChandrasekaranFor Respondents: M/s.Rita Chandrasekaran for R1 & R2J U D G M E N T(Delivered by S.J.MUKHOPADHAYA,J.)In all these cases, since common question of law is involved andcovered by a decision of the Supreme Court, they have been heardtogether and disposed of by this common order.2. The writ petitions have been filed by association ofemployees of different nationalised banks (Indian Bank, PunjabNational Bank, Indian Overseas Bank) and individuals. Thoseemployees of nationalised banks, who opted for voluntary retirementunder Voluntary Retirement Scheme 2000 (hereinafter referred to as"VRS 2000"), having denied the benefit of Regulation 29(5) of thePunjab National Bank (Employees) Pension Regulation, 1995 orequivalent regulation, preferred these writ petitions with almostsimilar prayer to get the entire benefit of such Regulation.3. Regulation 29 of PNB (Employees) Pension Regulation Scheme,1995 relates to pension on voluntary retirement. Under Regulation 29(5), the qualifying service of an employee retiring voluntarily shallbe increased by a period not exceeding five years, subject to thecondition that the total qualifying service rendered by such employeeshall not, in any case, exceed thirty three years and it does nottake him beyond the date of superannuation. Similar Regulation hasbeen framed by other Banks. Therefore, in normal course, anemployee, who is entitled to get pension on voluntary retirement, isentitled under Regulation 29(5) to get advantage of further period offive years in total, subject to the condition that the totalqualifying service rendered does not exceed 33 years.4. Pursuant to VRS 2000, a number of employees, includingmembers of the petitioner-Association, applied for voluntaryretirement and were granted benefit under that Scheme. However, theywere denied the benefit of Regulation 29(5) or equivalent Regulationand thereby, those who had less than 33 years of qualifying service,five years period or maximum upto five years had not been counted intheir service. 5. A number of writ petitions were filed before this Court andother High Courts by the employees of different nationalised Banksagainst their respective Bank for granting the benefit of additionalfive years of service under Regulation 29(5). This was opposed by https://hcservices.ecourts.gov.in/hcservices/ all the Banks on the ground that Regulation 29 is applicable forthose who obtain voluntary retirement under Regulation and notapplicable to those who have sought for voluntary retirement underVRS 2000. Different High Courts passed contrary decisions. Incertain cases, some of the High Courts, while held that those whoobtain voluntary retirement under VRS 2000 are entitled to thebenefit under Regulation 29(5) or equivalent Regulation, some otherHigh Courts opined that such employees are not entitled to get thebenefit under Regulation 29(5) or equivalent Regulation. 6. Against those judgments, when different Banks and individualsmoved before the Supreme Court, all the cases were heard together.In Bank of India v. K.Mohandas [2009 (2) CTC 759], having noticed therival contentions, the Supreme Court observed and held as follows:"We hold, as it must be, that the employees who hadcompleted 20 years of service and were pension opteesand offered voluntary retirement under VRS-2000 andwhose offers were accepted by the Banks are entitled toaddition of five years of notional service incalculating the length of service for the purposes ofthat Scheme as per Regulation 29(5) of the PensionRegulations, 1995. The contrary view expressed by someof the High Courts do not lay down the correct legalposition."7. The other question fell for consideration was whether theconcerned employees were entitled to interest on unpaid pension.Having heard the parties, the question was decided in negativeagainst the employees, as evident from paragraph 55 and quotedhereunder:"Although it has been held by us that the subjectemployees are entitled to the weightage in terms ofRegulation 29(5) of Pension Regulations, 1995, but weare satisfied that any award of interest on unpaidpension would not be in the interest of justice. It isso because different High Courts did not have unanimousjudicial opinion on the issue. Punjab and Haryana HighCourt and the Division bench of the Kerala High Courtupheld the contention of the employees with regard tothe applicability of Regulation 29(5) to the optees whohad completed 20 years of service while the DivisionBench of the Calcutta High Court and a single Judge ofthe Kerala High Court took exactly an opposite view.The stance of the Banks, although found not meritorious,cannot be said to be totally frivolous. We,accordingly, hold that the subject employees are notentitled to interest on unpaid pension." https://hcservices.ecourts.gov.in/hcservices/

8. So far as the present case of the petitioners is concerned,the question involved is being covered by the decision of the SupremeCourt in the Bank of India case (supra) and the same is also acceptedby the learned counsel appearing on behalf of the Union and differentBanks.9. In the facts and circumstances, while we hold that themembers of petitioners and other employees, who have opted voluntaryretirement pursuant to VRS 2000 from any of the respondent Bank andhave completed 20 years of service and who are pension optees, areentitled to addition of five years of notional service in calculatingthe length of service for the purpose of the Scheme as per Regulation29(5) of the Pension Regulation, 1995 or equivalent Regulation,subject to the condition that the total qualifying service renderedby such employee shall not, in any case, exceed thirty three yearsand it does not take him beyond the date of superannuation. 10. The respective Bank shall re-calculate within one month thepension payable to the concerned employees, including those who aremembers of the petitioner Association, members of the intervenerassociation and other equivalent employees who obtained voluntaryretirement under VRS 2000, and pay the benefits as per the aforesaidfinding, within a period of six weeks from the date ofreceipt/production of a copy of this order. The employees shall notbe entitled to interest on unpaid pension. However, if the amount isnot paid within the aforesaid period of six weeks from the date ofreceipt/production of a copy of this order, then, in such case, theemployees can claim interest and the Bank shall pay such dues withinterest at the rate of 8% from the date of this judgment till theamount is paid.The writ petitions are allowed. The writ appeal is dismissed.No costs. Consequently, WAMP No.6350 of 2003 is dismissed and WPMPNo.10469 of 2004 is closed. Sd/- Asst. Registrar / True Copy / Sub.Asst Registrar kplTo.1. The Chairperson and Managing Director, Indian Bank, 66, Rajaji Salai, Chennai 600 001. https://hcservices.ecourts.gov.in/hcservices/

2. The General Manager (P&HR) Indian Bank, Head Office 66, Rajaji Salai, Chennai 600 001.3. The Secretary,(Banking Ministry of Finance) Union of India,New Delhi.4. The Chairman & Managing Director, Punjab National Bank, Head Office, 7,Bhikhaiji Cama Place, New Delhi - 110 066.5. The General Manager(Personnel) Punjab National Bank, Head Office, 7,Bhikhaiji Cama Place, New Delhi - 110 066.6. The Zonal Manager, Punjab National Bank, 160,Greams Road, Chennai-6.7. The Senior Regional Manager, Punjab National Bank, 160,Greams Road, Chennai-6.8. The Deputy General Manager(Personnel) Punjab National Bank, No.7,Bhikhaiji Cama Place, New Delhi- 110 066.9. The Chairman & Managing Director, Indian Overseas Bank, Central Office. 762,Anna Salai, Chennai-2.10.The General Manager, The Competent Authority for Pension Regulations Indian Overseas Bank, Central Office. 762,Anna Salai, Chennai-2.+ 2 cc to Mr.C.R.Chandrasekaran,Advocate,SR.22114,22115+ 1 cc to M/s.Row & Reddy,Advocate,SR.22498 https://hcservices.ecourts.gov.in/hcservices/ + 2 cc to Mr.S.Jayaraman,Advocate,SR.22475,22476+ 2 cc to M/s.King & Patridge,Advocate,SR.22720,22721+ 1 cc to Mr.M.Ramamoorthi,Advocate,SR.22129+ 3 cc to Mr.M.Rangarajulu,Advocate,SR.22195W.A.No.3895 of 2003 and W.P.Nos.6751, 11127 & 22378 of 2001, 2413 & 2414 of 2004.RSI(CO)EM/PMK/14.7.09