{"id":71659,"date":"2003-02-21T00:00:00","date_gmt":"2003-02-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/v-subramaniam-vs-the-central-bank-of-india-on-21-february-2003"},"modified":"2014-06-14T21:53:21","modified_gmt":"2014-06-14T16:23:21","slug":"v-subramaniam-vs-the-central-bank-of-india-on-21-february-2003","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/v-subramaniam-vs-the-central-bank-of-india-on-21-february-2003","title":{"rendered":"V.Subramaniam vs The Central Bank Of India on 21 February, 2003"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">V.Subramaniam vs The Central Bank Of India on 21 February, 2003<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n IN THE HIGH COURT OF JUDICATURE AT MADRAS\n\nDATED: 21\/02\/2003\n\nCORAM\n\nTHE HONOURABLE MR. JUSTICE E. PADMANABHAN\n\nW.P. NO. 6485 OF 2001\n\nV.Subramaniam                          .. Petitioner\n\n-Vs-\n\nThe Central Bank of India\nrep. By its Managing Director\nPlot No.C-6, Block E, V Floor\nBandra Kurla Complex\nBandra (E)\nMUMBAI 400 051.                         .. Respondent\n\n        Petition filed under Article 226 of The Constitution of India  praying\nthis Court to issue a Writ of Declaration as stated therein.\n\nFor Petitioner :  Mr.  S.Ayyathurai\n\nFor Respondent :  Mr.  Karthik, for\n                M\/s.T.S.  Gopalan &amp; Co.\n\n:ORDER\n<\/pre>\n<p>1.   The writ petitioner, a retired officer of the respondent Bank, has prayed<br \/>\nfor the issue of a writ of  declaration  declaring  Regulation  No.22  of  The<br \/>\nCentral  Bank  of  India  Employees Pension Regulation, 1995, is null and void<br \/>\ninsofar  as  it  disentitles  the  employees  who  resigned  to  pension  and,<br \/>\nconsequently direct the respondent to pay pension to the petitioner.\n<\/p>\n<p>2.   Heard  Mr.S.Ayyathurai,  learned counsel appearing for the petitioner and<br \/>\nMr.Karthik, learned counsel appearing  for  M\/s.T.S.Gopalan  &amp;  Co.,  for  the<br \/>\nrespondents.   With  the consent of either side, the writ petition is taken up<br \/>\nfor final disposal.\n<\/p>\n<p>3.  The facts leading to the  present  writ  petition  has  to  be  summarised<br \/>\nbriefly for   considering   the  contentions  advanced  by  petitioner.    The<br \/>\npetitioner, who joined the respondent Bank as a clerk on 3.9.56, in course  of<br \/>\ntime earned  promotion  to  the  cadre  of  officer.    In September 1986, the<br \/>\npetitioner submitted his resignation in accordance with the  Central  Bank  of<br \/>\nIndia  (Officers)  Service Regulations, 1979, and the same was accepted by the<br \/>\nrespondent.  On completion of 30 years of continuous service,  the  petitioner<br \/>\nvoluntarily retired  from  service.    On  retirement,  all  terminal benefits<br \/>\npayable as per the existing rules, it is admitted has been paid  and  received<br \/>\nby the petitioner.\n<\/p>\n<p>4.   The  respondent  framed  the  Central  Bank  of  India (Employee) Pension<br \/>\nRegulations, 1995, for its employees.    Regulation  3  of  the  said  Pension<br \/>\nRegulation  will  cover  all  employees, who were in service of the Bank on or<br \/>\nafter the first day of January, 1986.  The petitioner claims that  he  was  in<br \/>\nservice  till  September, 1986 and, therefore, he is entitled to claim pension<br \/>\nunder the Regulations.  The petitioner&#8217;s request for pension was  turned  down<br \/>\nas the petitioner has resigned and in that view, the request of the petitioner<br \/>\nfor payment  of  pension under the regulation has been turned down.  According<br \/>\nto the petitioner, the resignation would only mean voluntary retirement.   The<br \/>\napplication  submitted  on  11.9.2000  claiming  pension was rejected by order<br \/>\ndated 30.9.2000 stating that the petitioner will not be entitled to pension as<br \/>\nhis case do not fall under any of the categories.\n<\/p>\n<p>5.  According to the petitioner,  Regulation  22  of  the  pension  regulation<br \/>\ninsofar as it denies pension for those who resigned is arbitrary, unreasonable<br \/>\nand   unfair  and,  therefore,  violative  of  Article  14  and  2  1  of  The<br \/>\nConstitution.  The equation  of  resignation  with  dismissal  or  removal  or<br \/>\ntermination  of the service of an employee to disentitle a resignee is unfair,<br \/>\nunreasonable and arbitrary.  There is no provision relating to resignation and<br \/>\nRegulation 19 of the rules only speaks of voluntary  retirement.    Therefore,<br \/>\naccording  to  the petitioner, his resignation is a voluntary retirement and a<br \/>\ndirection should be issued consequentially to settle the pension payable under<br \/>\nthe rules.\n<\/p>\n<p>6.  The respondent filed a counter opposing the claim,  besides  pointing  out<br \/>\nthat  since the petitioner has left the Bank 25 years since, a quarter century<br \/>\nbefore, no records are available.  The Central Bank of India was  nationalised<br \/>\nby the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.<br \/>\nBy virtue of powers conferred under Section 19 read with Section 12 (2) of the<br \/>\nsaid  enactment,  the  Bank in consultation with the Reserve Bank of India and<br \/>\nwith  the  previous  approval  of  the  Central  Government   framed   service<br \/>\nregulations  in  respect  of  officers,  which  came  into  force  on  1.7.79.<br \/>\nRegulation 19 prescribes the age of retirement.  Regulation  19.7  deals  with<br \/>\nvoluntary  retirement  of  officers before reaching the age of superannuation.<br \/>\nIn terms of Regulation 19.7 (a), an  officer  employee  of  the  Bank  may  be<br \/>\npermitted  to  retire  voluntarily  from service at any time, if he or she has<br \/>\ncompleted 30 years of service as an officer or has  attained  the  age  of  55<br \/>\nyears, whichever  is  earlier, by giving three months notice in writing.  Such<br \/>\nan officer under  Regulation  19.7  (e)  shall  be  entitled  to  benefits  as<br \/>\napplicable  under  normal  retirement in accordance with the provisions of The<br \/>\nCentral Bank of India (Officers) Service Regulations, 1979.\n<\/p>\n<p>7.   The  Central  Bank  of  India  Employees  Pension  Regulations,  1995,  (<br \/>\nhereinafter  referred to as pension regulations) was framed by virtue of power<br \/>\nconferred under Section 19 (2) (f) of The Banking Companies ( Acquisition  and<br \/>\nTransfer of  Undertakings)  Act, 1970.  Regulation 3 applies to employees, who<br \/>\nwere in service on or after the 1st January, 1 986,  but  retired  before  1st<br \/>\nNovember, 1993.  According to the respondent, the officer-employee, who was in<br \/>\nservice  after  1st  January,  1986 but retired before 1st November 1993 alone<br \/>\ncould exercise the option for drawing pension,  provided  such  an  option  is<br \/>\nexpressed  within  the time stipulated and refunds the amount received towards<br \/>\nbanks contribution.\n<\/p>\n<p>8.  The petitioner was born on 15.12.1934 and joined the services of the  bank<br \/>\non 3.9.56 as a clerk.  Long time after that he was promoted as an officer from<br \/>\nwhich post  he  resigned  in  June  1986  and  he was relieved on 3.9.86.  His<br \/>\nterminal benefits were paid as the petitioner&#8217;s resignation took place  nearly<br \/>\n24 years  back.   No papers pertaining to the petitioner are traceable so that<br \/>\nthe bank could set out full particulars.\n<\/p>\n<p>9.  It is stated by the respondent that the petitioner has not put in 30 years<br \/>\nof service as an officer nor he had attained the age of 55 years at  the  time<br \/>\nwhen his  resignation  was  accepted  in  1986.  The cessation of petitioner&#8217;s<br \/>\nemployment was not by way of voluntary retirement under Regulation 19  of  The<br \/>\nCentral Bank  of  India  (Officers) Service Regulation, 1979.  Further without<br \/>\nprejudice  it  is  submitted  that  the  petitioner  had  not  approached  the<br \/>\nrespondent  Bank  and  expressed  his option for drawing pension in accordance<br \/>\nwith the regulations.  The petitioner has failed to approach the  Bank  within<br \/>\n120  days  nor  he  has  refunded  the  amount  of  the Bank&#8217;s contribution of<br \/>\nprovident fund with interest.  Therefore, the  claim  of  the  petitioner  for<br \/>\npayment of  pension is without merits.  The petitioner has approached the Bank<br \/>\nbelatedly and the writ petition is liable to be dismissed  on  the  ground  of<br \/>\ndelay and  laches.    The  various  contentions advanced by the petitioner are<br \/>\ndevoid of merits.  The contention that Regulation 22 is unconstitutional  also<br \/>\ncannot be  countenanced.   The petitioner, who resigned in terms of Regulation<br \/>\n22 of the pension regulations forfeiting his past service and,  therefore,  he<br \/>\nis not  qualified  for  pension.  The petitioner is not entitled to any relief<br \/>\nprayed for in this writ petition.\n<\/p>\n<p>10.   Mr.Ayyathurai,  learned  counsel  for  the  petitioner  contended   that<br \/>\nRegulation 22 of The Central Bank of India Employees Pension Regulation has to<br \/>\nbe  declared  as  unconstitutional  and,  consequently,  a direction has to be<br \/>\nissued to the respondent-bank to pay pension for the services rendered by  the<br \/>\npetitioner.   Per  contra it is contended that the question whether Regulation<br \/>\n29 is unconstitutional or not  will  not  arise  and  assuming  so  also,  the<br \/>\npetitioner  will  not  be  entitled  to  pension  as on facts, in terms of the<br \/>\npension regulations, the petitioner will not be entitled to  pension  at  all.<br \/>\nMr.Karthick,  learned  counsel  for  the  respondent,  while  referring to the<br \/>\nregulations contended that the petitioner is not entitled to any relief.\n<\/p>\n<p>11.  The points that arise for consideration in this writ petition are :-<br \/>\n&#8220;i) Whether Regulation 22 (1) of  The  Central  Bank  of  India  (  Employees)<br \/>\nPension Regulations, 1995, is liable to be declared as unconstitutional ?\n<\/p>\n<p>ii)  Whether the petitioner is entitled for a direction for payment of pension<br \/>\nby the respondent Bank on the facts of the case ?&#8221;\n<\/p>\n<p>12.  To consider both the questions, it is essential to refer to some  of  the<br \/>\nprovisions  of  the  Pension Regulations, 1995, which regulation is statutory.<br \/>\nRegulation 2 (y) defines the expression &#8220;retirement&#8221;.   The  definition  reads<br \/>\nthus :-\n<\/p>\n<p>&#8220;2(y)&#8221;Retirement&#8221; means cessation from Bank&#8217;s service, &#8211;\n<\/p>\n<p>(a) on attaining the age of superannuation specified in Service Regulations or<br \/>\nSettlements;\n<\/p>\n<p>(b)  on  voluntary  retirement  in  accordance  with  provisions  contained in<br \/>\nregulation 29 of these regulations;\n<\/p>\n<p>(c)  on  premature  retirement  by  the  Bank  before  attaining  the  age  of<br \/>\nsuperannuation specified in Service Regulations or Settlement.&#8221;\n<\/p>\n<p>13.  Regulation 2 (x) defines the expression &#8220;retired&#8221;, which includes &#8220;deemed<br \/>\nto have  retired&#8221;  in  clause  &#8220;l&#8221;.    Regulation 2 (l) defines the expression<br \/>\n&#8220;deemed to have retired&#8221; and it reads thus :-\n<\/p>\n<p>&#8220;Deemed to  have  retired&#8221;  means  cessation  from  service  of  the  Bank  on<br \/>\nappointment  by  Central  Government  as  a  whole-time  Director  of Managing<br \/>\nDirector or Chairman in the Bank or in any other Bank specified in column 2 of<br \/>\nthe FIRST SCHEDULE of the Act or Banking Companies ( Acquisition and  Transfer<br \/>\nof  Undertakings) Act, 1970 (5 of 1970) or in any public financial institution<br \/>\nor State Bank of India established under State Bank of India Act, 1955 (23  of<br \/>\n1955).&#8221;\n<\/p>\n<p>14.  Regulation 3 (1), which is relevant for the present case, reads thus :-<br \/>\n&#8220;Application :  These regulations shall apply to employees who &#8211;<br \/>\n(1)  (a)  were  in the service of the Bank on or after the 1st day of January,<br \/>\n1986 but had retired before the 1st day of November, 1993; and\n<\/p>\n<p>(b) exercise an option in writing within one hundred and twenty days from  the<br \/>\nnotified date to become member of the Fund; and\n<\/p>\n<p>(c)  refund  within  sixty  days  after  the  expiry of the said period of one<br \/>\nhundred and twenty days specified in clause  (b)  the  entire  amount  of  the<br \/>\nBank&#8217;s  contribution  to the Provident Fund including interest accrued thereon<br \/>\ntogether with a further simple interest at the rate of six percent  per  annum<br \/>\non  the  said amount from the date of settlement of the Provident Fund account<br \/>\ntill the date of refund of the aforesaid amount to the Bank.&#8221;\n<\/p>\n<p>15.  Chapter IV of the Regulation  prescribes  the  qualifying  service.    In<br \/>\nChapter IV, Regulation 22 provides for forfeiture of service, which reads thus<br \/>\n:-\n<\/p>\n<p>&#8220;Qualifying  Service  &#8211;  Subject  to  the  other conditions contained in these<br \/>\nregulations, an employee who has rendered a minimum of ten years of service in<br \/>\nthe Bank on the date of his retirement or the date on which he  is  deemed  to<br \/>\nhave retired shall qualify for pension.&#8221;\n<\/p>\n<p>The  remaining  portion of this regulations is not relevant for the purpose of<br \/>\nthe present case.  This is the provision, which is sought to be challenged  as<br \/>\nunconstitutional or violative of Article 14 &amp; 21.\n<\/p>\n<p>16.   Regulation  29  provides  for  payment  of  pension in case of voluntary<br \/>\nretirement on or after the 1st day of November 1993 and at any time  after  an<br \/>\nemployee has completed 20 years of qualifying service.  The individual officer<br \/>\nmay  by  giving  notice  of  not  less  than  three  months  in writing to the<br \/>\nappointing authority retire from service.  Such a notice has to be accepted by<br \/>\nthe appointing authority.  Thus Regulation 29 will not cover the case  of  the<br \/>\npetitioner  as  according to him he has resigned during the year 1986 and long<br \/>\nprior to commencement of the regulation.\n<\/p>\n<p>17.  Regulation 32 provides for premature retirement pension and Regulation 33<br \/>\nprovides for compulsory  retirement  pension.    While  referring  to  Service<br \/>\nRegulation  19.7  of  the Officers Service Rules, it is being pointed out that<br \/>\nthe petitioner could not have been allowed to retire voluntarily in  terms  of<br \/>\nRegulation  19  as  on  the  date of retirement, the petitioner could not have<br \/>\nsatisfied with Service Regulation 19.7, which reads thus :-<br \/>\n&#8220;19.7 (a) An officer of the Bank may be permitted to retire  voluntarily  from<br \/>\nthe  service  of  the  Bank  at  any time if he\/she has completed 3 0 years of<br \/>\nservice as an officer or has attained the age of 55 years,  whichever  happens<br \/>\nearlier, after giving the Bank 3 months&#8217; notice in writing.&#8221;\n<\/p>\n<p>18.  Admittedly the petitioner did not held the post of officer for  30  years<br \/>\nnor  he  has attained the age of 55 years on the date of his leaving the bank.<br \/>\nTherefore, the petitioner could not have been permitted to retire  voluntarily<br \/>\nin terms  of  Regulation  19  of  the  service rules.  Mr.Karthik, the learned<br \/>\ncounsel appearing for the respondent, is well founded in  his  contention  and<br \/>\nthis  factual  and  legal  position  is  fatal  to the claim of pension by the<br \/>\npetitioner.  In case of retirement of officers under proviso to sub-regulation<br \/>\n(1) of Regulation 19 , an officer is entitled for payment  of  pension.    The<br \/>\npetitioner  has  not  retired  voluntarily  in  terms  of Regulation 19 of The<br \/>\nOfficer&#8217;s Service Rules.\n<\/p>\n<p>19.  &#8220;Retirement&#8221; means either on  attaining  the  age  of  superannuation  or<br \/>\nvoluntary  retirement  in  accordance  with  provision  to  Regulation  29  or<br \/>\npremature retirement by the  Bank  on  attaining  the  age  of  superannuation<br \/>\nspecified in the service rules.  Admittedly, the petitioner&#8217;s case do not fall<br \/>\nunder either  the  first contingency or the 3rd contingency.  If at all he may<br \/>\nclaim under the 2nd contingency,  namely,  voluntary  retirement.    But  such<br \/>\nvoluntary retirement should be in accordance with Regulation 29.\n<\/p>\n<p>20.   Regulation  29  (1)  also  will  not cover the case of the petitioner as<br \/>\nRegulation 29 would apply to a case where an employee on and after the 1st day<br \/>\nof November 1993 and at any time after thereof, on completion of 20  years  of<br \/>\nqualifying  service, may retire by giving notice of not less than three months<br \/>\nin writing to the appointing authority.  This is not the case and it is not as<br \/>\nif the petitioner has retired on and after the 1st November, 1993.  Therefore,<br \/>\nRegulation 29 will have no application to the facts of the present case.\n<\/p>\n<p>21.  The petitioner also cannot take advantage of the definition clause 2  (l)<br \/>\n&#8220;deemed to have retired&#8221;, as it is not as if the cessation from service of the<br \/>\nbank  on  appointment  to  Central  Government  or as a whole-time Director or<br \/>\nManaging Director or Chairman in the Bank  or  any  other  Bank  specified  in<br \/>\nColumn  2  of  the  first  schedule  of  the  Act  or  in any public financial<br \/>\ninstitution or State Bank of India established under The State Bank  of  India<br \/>\nAct, 1955.    Thus on a conceptuous consideration of the Central Bank of India<br \/>\nEmployees Pension Regulations, 1995, the petitioner&#8217;s  claim  for  payment  of<br \/>\npension cannot  be  countenanced  and it has to be rejected.  Accordingly, the<br \/>\n2nd point is answered against the petitioner.\n<\/p>\n<p>22.  Taking up  the  first  contention,  challenge  to  Regulation  22,  which<br \/>\nprovides  pension  in  case  of  resignation  before  1.11.1993 and in case of<br \/>\ndismissal or removal or termination of an employee from service  of  the  Bank<br \/>\nthe  individual  officer  will  result  in  forfeiture of pensionary benefits.<br \/>\nAccording  to  Mr.Ayyathurai,  learned  counsel  for   the   petitioner,   the<br \/>\nresignation  or  dismissal  or removal or termination are sought to be treated<br \/>\nequally and this is arbitrary, besides it is violative of Article 14 and 21.\n<\/p>\n<p>23.  In this  respect,  Mr.Ayyathurai,  learned  counsel  for  the  petitioner<br \/>\nreferred to  the pronouncement of the Supreme Court in J.K.  COTTON SPINNING &amp;<br \/>\nWEAVING MILLS VS.  STATE OF U.P.  &amp; OTHERS reported in AIR 19 90 SC 1808.   In<br \/>\nthe  said pronouncement, the Apex Court, while construing Section 2 (s) of The<br \/>\nU.P.  Industrial Disputes Act, 1947,  held  that  termination  of  service  by<br \/>\nemployer by accepting resignation does not amount to retrenchment and the same<br \/>\nshall  be  covered  by  voluntary  retirement  under Section 2 (s) of The U.P.<br \/>\nIndustrial Disputes Act, 19 47.  In that context, the Apex Court held thus :-<br \/>\n&#8220;8.   In  the  present  case the employee&#8217;s request contained in the letter of<br \/>\nresignation was accepted by the employer  and  that  brought  an  end  to  the<br \/>\ncontract of  service.    The  meaning of term &#8216;resign&#8217; as found in the Shorter<br \/>\nOxford Dictionary  includes  &#8216;retirement&#8217;.    Therefore,  when   an   employee<br \/>\nvoluntarily tenders his resignation it is an act by which he voluntarily gives<br \/>\nup his  job.  We are, therefore, of the opinion that such a situation would be<br \/>\ncovered by the expression &#8216; voluntary retirement&#8217; within the meaning of Cl.(i)<br \/>\nof Sec.2(s) of the State Act.  In Santosh Gupta&#8217;s case  (AIR  1980  SC  1219),<br \/>\nChinnappa Reddy, J.  observed as under (at p.  1220 of AIR):<br \/>\n&#8220;Voluntary  retrenchment  of  a  workman or the retrenchment of the workman on<br \/>\nreaching the age of superannuation can hardly be described as termination,  by<br \/>\nthe employer, of the service of a workman.&#8221;\n<\/p>\n<p>(Here the word &#8216;retrenchment&#8217; has reference to &#8216;retirement&#8217;.)<br \/>\nThe above observation clearly supports the view which commends to us.  We are,<br \/>\ntherefore, of the opinion that the High Court was not right in concluding that<br \/>\nbecause  the  employer  accepted the resignation offer voluntarily made by the<br \/>\nemployee, he terminated the service of  the  employee  and  such  termination,<br \/>\ntherefore,  fell  within the expression &#8216;retrenchment&#8217; rendering him liable to<br \/>\ncompensate the employee under S.6N.  We are also of the view that this  was  a<br \/>\ncase  of  &#8216;voluntary  retirement&#8217; within the meaning of the first exception to<br \/>\nSec.2(s) and therefore the question of grant of compensation under  S.6N  does<br \/>\nnot arise.  We therefore, cannot allow the view of the High Court to stand.&#8221;\n<\/p>\n<p>24.  The above pronouncement will not advance the case of  the  petitioner  as<br \/>\nthe  Apex Court had occasion to consider what is the meaning of the expression<br \/>\n&#8220;resignation&#8221; and effect of such  resignation  and  held  that  acceptance  of<br \/>\nresignation  offered  voluntarily  is  not retrenchment and no compensation is<br \/>\npayable under Section 6-L by the employer.\n<\/p>\n<p>25.  The learned counsel for the petitioner relied upon the  pronouncement  in<br \/>\nCECIL DENNIS  SOLOMON  &amp; ANOTHER VS.  RESERVE BANK OF INDIA &amp; ANOTHER reported<br \/>\nin 2002 (3) LLJ 115 in support of his contention that resignation from service<br \/>\nis not equivalent to dismissal or termination, both of which are the  acts  of<br \/>\nmanagement, but  resignation  is  more  akin  to  voluntary  retirement.  This<br \/>\npronouncement also will not support the petitioner&#8217;s contention or claim.\n<\/p>\n<p>26.  It is admitted that on the date when the petitioner entered  the  service<br \/>\nof  the  respondent  Bank as well as on the date when the petitioner resigned,<br \/>\nthere was no provision at all for payment of pension nor there was any  scheme<br \/>\nand  for  the  first time, the scheme was introduced in the Pension Rules long<br \/>\nafter the retirement of the petitioner from the service of the Bank.  As  such<br \/>\nnone  of the vested rights of the petitioner had been taken away by any of the<br \/>\nprovisions under the Pension Rules, which came into force on 1.7.79.\n<\/p>\n<p>27.  In TAMIL NADU ELECTRICITY BOARD VS.  R.  VEERASAMY reported in  1999  (3)<br \/>\nSCC  414, where their Lordships of the Apex Court had occasion to consider the<br \/>\ncontention whether prospective introduction of pension scheme  with  reference<br \/>\nto  a cut off date is valid or violative of Articles 14 and 16 or based upon a<br \/>\nclassification or  based  on  intelligible  differentia  like  cut  off  date?<br \/>\nVenkatasami, J., (as he then was), after analysing the case law, held thus :-<br \/>\n&#8220;8.  As noticed earlier, the law is very well settled on the  issue  on  hand.<br \/>\nIn the  latest  judgment  dated  9.10.1998  of  this  Court  in <a href=\"\/doc\/1647630\/\">V.  Kasturi v.<br \/>\nManaging Director,  State  Bank  of  India,  Bombay<\/a>  after  noticing  all  the<br \/>\njudgments of this Court up to that date on this issue, it was held as follows:<br \/>\n&#8220;23.   However,  if  an employee at the time of his retirement is not eligible<br \/>\nfor  earning  pension  and  stands  outside  the  class  of   pensioners,   if<br \/>\nsubsequently  by  amendment  of  the  relevant  pension  rules  any beneficial<br \/>\numbrella of pension scheme is extended to cover a new class of pensioners  and<br \/>\nwhen  such  a  subsequent scheme comes into force, the erstwhile non-pensioner<br \/>\nmight have survived,  then  only  if  such  extension  of  pension  scheme  to<br \/>\nerstwhile  non-pensioners  is  expressly made retrospective by the authorities<br \/>\npromulgating such scheme; the erstwhile non-pensioner who has retired prior to<br \/>\nthe advent of such extended pension scheme can claim benefit  of  such  a  new<br \/>\nextended pension scheme.  If such new scheme is prospective only, old retirees<br \/>\nnonpensioners  cannot  get  the  benefit of such a scheme even if they survive<br \/>\nsuch new scheme.  They will remain outside its sweep.  The decisions  of  this<br \/>\nCourt covering  such second category of cases are:  <a href=\"\/doc\/33334\/\">Commander, Head Quarter v.<br \/>\nCap.  Biplabendra Chanda and Govt.  of T.N.<\/a>  v.  K.   Jayaraman  to  which  we<br \/>\nhave made  a  reference  earlier.    If  the  claimant  for  pension  benefits<br \/>\nsatisfactorily brings his case within the first category of cases, he would be<br \/>\nentitled to get the additional benefits of  pension  computation  even  if  he<br \/>\nmight  have  retired  prior  to  the enforcement of such additional beneficial<br \/>\nprovisions.  But if on the other hand, the case of a retired employee falls in<br \/>\nthe second category, the fact that he retired prior to the  relevant  date  of<br \/>\nthe  coming into operation of the new scheme would disentitle him from getting<br \/>\nsuch a new benefit.&#8221;\n<\/p>\n<p>* * * *\n<\/p>\n<p>11.  On 17.11.1998, a three Judge Bench in <a href=\"\/doc\/304352\/\">All  India  PNB  Retired  Officers&#8217;<br \/>\nAssn.  v.    Union  of  India<\/a>  while  negativing  an  identical claim, held as<br \/>\nfollows:\n<\/p>\n<p>&#8220;This writ petition is squarely covered by the judgment of this Court  in  <a href=\"\/doc\/100829\/\">All<br \/>\nIndia Reserve Bank Retired Officers&#8217; Assn.  v.  Union of India.  That<\/a> judgment<br \/>\nhas  rightly  noted the distinction that Nakara case drew between a continuing<br \/>\nscheme and a new scheme.&#8221;\n<\/p>\n<p>12.  In view of the fact that this Court,  as  seen  above,  has  consistently<br \/>\ntaken  a  view,  we  do  not  want  to  multiply  the authorities for the same<br \/>\nproposition except to note down the undisputed facts relating to these cases.&#8221;<br \/>\nFollowing the said pronouncement, this Court also holds that the cut off date,<br \/>\nin the present case, is neither  violative  of  Article  14  nor  Article  16.<br \/>\nTherefore, the contention advanced in this respect cannot be sustained.\n<\/p>\n<p>28.  In STATE OF W.B.  VS.  RATAN BEHARI DEY &amp; ORS., reported in 1993 (4 ) SCC<br \/>\n62, the Apex Court held that an employer has the undoubted power to revise the<br \/>\nsalaries  and\/or  pay  scales  and  so  also the terminal benefits, pensionary<br \/>\nbenefits and it has the power to specify the date from which revision  of  pay<br \/>\nor  pensionary  benefits,  as  the  case may be, shall take effect, as it is a<br \/>\nconcomitant of the said power and when  there  is  no  discrimination  between<br \/>\nsimilarly  placed  persons, no interference is called for by the Court in that<br \/>\nbehalf.  This pronouncement squarely applies.\n<\/p>\n<p>29.  While following the pronouncement  in  ALL  INDIA  RESERVE  BANK  RETIRED<br \/>\nOFFICERS ASSOCIATION AND OTHERS VS.  UNION OF INDIA &amp; ANOTHER (1992 Supp.  (1)<br \/>\nSCC 664),  in  SUBRATA  SEN  VS.  UNION OF INDIA reported in 20 01 (8) SCC 71,<br \/>\nM.B.Shah, J., reiterated the law laid down by Ahamadi J.\n<\/p>\n<p>30.  In ALL INDIA RESERVE BANK RETIRED OFFICERS  ASSOCIATION  AND  OTHERS  VS.<br \/>\nUNION OF  INDIA &amp; ANOTHER reported in 1992 Supp.  (1) SCC 664, while examining<br \/>\nthe scope of Reserve Bank of India Officers Regulations, which was  challenged<br \/>\nas violative of Article 14, and in particular the cut off date, the Apex Court<br \/>\nheld thus :-\n<\/p>\n<p>&#8220;Whenever  any  rule  or  regulation  having  statutory  flavour is made by an<br \/>\nauthority which is a State within the meaning of Art.21,  the  choice  of  the<br \/>\ncut-off  date  which  has  necessarily  to  be  introduced  to effectuate such<br \/>\nbenefits such benefits is open to scrutiny by the Court and must be  supported<br \/>\non the  touchstone  of  Art.14.    If  the  choice  of  the  date  results  in<br \/>\nclassification or division of members of a homogeneous group it would be  open<br \/>\nto the Court to insist that it be shown that the classification is based on an<br \/>\nintelligible  differentia and on rational consideration which bears a nexus to<br \/>\nthe purpose and object thereof.  The differential treatment accorded to  those<br \/>\nwho  retired  prior  to  the  specified  date and those who retired subsequent<br \/>\nthereto must be justified on the touchstone of Art.14, for otherwise it  would<br \/>\nbe offensive to the philosophy of equality enshrined in the Constitution.<br \/>\nHowever,  a  distinction  has  to  be drawn between continuance of an existing<br \/>\nscheme in its liberalised form and introduction of a wholly new scheme; in the<br \/>\ncase of the former all the pensioners had a right to pension on uniform  basis<br \/>\nand  any  division  which  classified  them  into  two groups by introducing a<br \/>\ncut-off date would ordinarily violate the principle of equality  in  treatment<br \/>\nunless  there  is a strong rationale discernible for so doing and the same can<br \/>\nbe supported on the ground that it will  subserve  the  object  sought  to  be<br \/>\nachieved.   But  in  the  case of a new scheme, in respect whereof the retired<br \/>\nemployees have no vested right, the employer can restrict the same to  certain<br \/>\nclass  of retirees, having regard to the fact-situation in which it came to be<br \/>\nintroduced, the extent of additional financial burden that it will throw,  the<br \/>\ncapacity  of  the  employer to bear the same, the feasibility of extending the<br \/>\nscheme to all retirees regardless  of  the  dates  of  their  retirement,  the<br \/>\navailability of  records  of  every  retiree, etc.  In the case of an employee<br \/>\ngoverned by the CPF scheme his relations with the employer come to an  end  on<br \/>\nhis  retirement  and  receipt of the CPF amount but in the case of an employee<br \/>\ngoverned under the pension scheme  his  relations  with  the  employer  merely<br \/>\nundergo a  change  but  do  not  snap  altogether.  That is the reason why the<br \/>\nSupreme Court in Nakara case drew a distinction between liberalisation  of  an<br \/>\nexisting benefit  and  introduction  of  a totally new scheme.  in the case of<br \/>\npensioners  it  is  necessary  to  revise  the  pension  periodically  as  the<br \/>\ncontinuous  fall  in  the  rupee  value  and  the  rise in prices of essential<br \/>\ncommodities necessitates an adjustment of the pension amount but that  is  not<br \/>\nthe  case  of employees governed under the CPF scheme, since they had received<br \/>\nthe lump sum payment which they were at liberty to invest  in  a  manner  that<br \/>\nwould yield optimum return which would take care of the inflationary trends.<br \/>\nThe scheme  introduced by the Regulations is a totally new one.  It was not in<br \/>\nexistence prior to its introduction with effect from November 1,  1990.    The<br \/>\nemployees  of  the  Reserve  Bank  who  had  retired  prior  to that date were<br \/>\nadmittedly governed by the CPF scheme.   They  had  received  the  benefit  of<br \/>\nemployer&#8217;s  contribution under that scheme and on superannuation the amount to<br \/>\ntheir account was disbursed to them and they had put it to use  also.    There<br \/>\ncan, therefore, be no doubt that the retiral benefits admissible to them under<br \/>\nthe extant  Rules  of  the  Bank  had  been paid to them.  That was the social<br \/>\nsecurity plan available to them at the date of their retirement.    Therefore,<br \/>\nif  the  CPF retirees were not admitted to this new scheme they could not make<br \/>\nany grievance in that behalf.  They had no right to claim coverage  under  the<br \/>\nnew  pension  scheme  since  they  had already retired and had collected their<br \/>\nretiral benefits from the employer.&#8221; (Emphasis Supplied)<\/p>\n<p>31.  In  B.S.YADAV  VS.   CENTRAL BANK OF INDIA reported in 1987 (3) SCC 1 20,<br \/>\nthe Apex Court sustained the validity of classification of employees into  two<br \/>\ncategories and  held that they are not violative of Article 14 or 16.  In that<br \/>\ncontext, the Apex Court held thus :-\n<\/p>\n<p>&#8220;16.  We  have  given  detailed  reasons  in  our  judgment  in  LIC  v.  S.S.<br \/>\nSrivastava decided cm May 5, 1987 justifying the existence of  a  rule  fixing<br \/>\ndifferent  ages  of  retirement  to different classes of employees of the Life<br \/>\nInsurance Corporation of India in  the  circumstances  existing  there.    The<br \/>\ncircumstances prevailing  in this case are almost the same.  Those reasons are<br \/>\nequally applicable to the present case too.  In Govindarajulu v.    Management<br \/>\nof  the  Union  Bank  of  India decided on November 21, 1986 the High Court of<br \/>\nMadras has rejected the contentions similar to those which are  raised  before<br \/>\nus.   In  that  case  a regulation framed by the Union Bank of India which was<br \/>\nsimilar to the one in this case was upheld.  That decision has  been  approved<br \/>\nby us in LIC v.    S.S.  Srivastava.  In Dr Nikhil Bhusan Chandra v.  Union of<br \/>\nIndia similar regulations framed by the United Commercial Bank which was  also<br \/>\nnationalised under the Act came up for &#8216;consideration before the High Court of<br \/>\nCalcutta.  The High Court rejected the theory of discrimination put forward on<br \/>\nthe  basis  that  fixing  60  years  as  age  of retirement for those who were<br \/>\nrecruited prior to July 19, 1969 and 58 years of age  who  joined  after  that<br \/>\ndate lacked  an intelligible differentia.  The Calcutta High Court pointed out<br \/>\nthat the terms and conditions of the service of the  employees  of  the  banks<br \/>\nwhich  were  taken over under the Act had been protected by the Act and it was<br \/>\nnot possible to hold that there had been any  hostile  discrimination  against<br \/>\nthe petitioner  in  that  case.   We are of the view that the decisions of the<br \/>\nMadras High Court and the Calcutta High Court, referred to above, lay down the<br \/>\ncorrect principle.  It is true that if the nationalised banks wanted to reduce<br \/>\nthe age of retirement of the transferred employees they could  have  done  so.<br \/>\nBut  they  have  tried to standardise their conditions of service and to bring<br \/>\nabout  some  uniformity  without  giving   room   for   much   discontent   or<br \/>\ndissatisfaction.   The  question  involved  in  this matter is not one of mere<br \/>\ncompetence.  It involves justice and fairness  too.    Having  regard  to  all<br \/>\naspects  of  the matter, the nationalised banks have tried to be fair and just<br \/>\ninsofar as the question of age of retirement is concerned.  We cannot  say  in<br \/>\nthe  circumstances that the Bank&#8217;s attitude is unreasonable, particularly when<br \/>\nthe age of retirement of  the  new  entrants  is  quite  consistent  with  the<br \/>\nconditions prevailing in almost all the sectors of public employment.\n<\/p>\n<p>17.   We  are  of  the  view that the classification of the employees into two<br \/>\ncategories, i.e., those falling under Rules 1 and 2 of the Rules  for  Age  of<br \/>\nRetirement  and  those  falling  under Rule 3 thereof satisfies the tests of a<br \/>\nvalid classification laid down under Articles 14 and 16 of  the  Constitution.<br \/>\nWe  do  not, therefore, find any ground to declare Rule 3 of the Rules for Age<br \/>\nof Retirement, which is impugned in this case, as unconstitutional.&#8221;\n<\/p>\n<p>32.  In the present case also, if the resignation is after the introduction of<br \/>\nthe pension scheme and if such resignation is in conformity with  the  pension<br \/>\nregulations  read with the officers service rules, the individual officer will<br \/>\nbe entitled to pension subject to  eligibility.    But  Regulation  22,  which<br \/>\nprovides  forfeiture  of  pension  in  this case, as rightly contended, is not<br \/>\nviolative of Article 14 and 21, as  Regulation  29  provides  for  pension  on<br \/>\nvoluntary  retirement on or after the 1st day of November, 1993 at any time on<br \/>\ncompletion of 20 years of qualifying service by giving three months notice and<br \/>\nsatisfying the  requirements  stipulated  under  Regulation  29.    Therefore,<br \/>\nRegulation   22,   which  provides  for  forfeiture  of  service  in  case  of<br \/>\nresignation, which applies only to those who have resigned before 1st  day  of<br \/>\nNovember,  1993,  and  such  cut  off  date  cannot be held to be arbitrary or<br \/>\nviolative of Article 14 or 21.  The petitioner, who has no  right  to  pension<br \/>\neither on the date when he entered the service or on the date when he resigned<br \/>\naccording  to  him,  has no right to pension and he cannot, therefore, contend<br \/>\nthat Regulation 22 (1) offends either Article 14 or 21.\n<\/p>\n<p>33.  The reliance placed upon the pronouncement in DELHI TRANSPORT CORPORATION<br \/>\nVS.  DELHI TRANSPORT CORPORATION MAZDOOR CONGRESS reported in 1991 Supp.   (1)<br \/>\nSCC 600 as well as the pronouncement in RESERVE BANK OF INDIA VS.  S.JAYARAJAN<br \/>\nreported in  1995  Supp.  (4) SCC 584 will not support the contention advanced<br \/>\nby the petitioner.  The learned counsel for the petitioner is not able to  lay<br \/>\nhis hands on any other authority in this respect to support his contention.\n<\/p>\n<p>34.   Regulation 22 (1) of The Pension Regulations, which is being challenged,<br \/>\nis not arbitrary nor it is irrational nor any accrued rights of the petitioner<br \/>\nare being denied.  Hence, this Court holds that the contention that Regulation<br \/>\n22 (1) is violative of Article 14 and 21 cannot be countenanced.  Hence,  both<br \/>\nthe  points  are  answered  against  the  writ petitioner and in favour of the<br \/>\nrespondent.\n<\/p>\n<p>35.  In the result, this writ petition is dismissed, but without costs.\n<\/p>\n<p>Index :  Yes<br \/>\nInternet :  Yes<br \/>\nGLN<\/p>\n<p>To<br \/>\nThe Managing Director<br \/>\nCentral Bank of India<br \/>\nPlot No.C-6, Block E, V Floor<br \/>\nBandra Kurla Complex<br \/>\nBandra (E)<br \/>\nMUMBAI 400 051.\n<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court V.Subramaniam vs The Central Bank Of India on 21 February, 2003 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21\/02\/2003 CORAM THE HONOURABLE MR. JUSTICE E. PADMANABHAN W.P. NO. 6485 OF 2001 V.Subramaniam .. Petitioner -Vs- The Central Bank of India rep. By its Managing Director Plot No.C-6, Block E, V [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-71659","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>V.Subramaniam vs The Central Bank Of India on 21 February, 2003 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/v-subramaniam-vs-the-central-bank-of-india-on-21-february-2003\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"V.Subramaniam vs The Central Bank Of India on 21 February, 2003 - Free Judgements of Supreme Court &amp; 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