:JJ n{ THE HIGH COURT OF DELHI AT }.iEW DELHI suP{c) i.io.6332/2003 & cw,91 18-9373n005 Ilaie of l)ecision : A ugusi 05, 2005 AI.L INIiTA Pi.IB RETIRED OFFICERS ASSOCIATIO}{ (Regd,) & Ai.TR. ...........Petitioners Through: ivfr. Funeei Aggarwal and Mr. Aiul Barrdhu, A /hrmatao n Ll V \,V(I.t\zD. Vei'sris : puN.TAll i',iATIOi.iAL BANK ^-.^ ^*r r.f.. ,>^:^i .,.....,,.Respondeni Througlr: Ml'. Jagat Arora and bir. Rqiat Arora, Advdocates. .-1l^\T\ A Lr. \-rJrttltvr: TH E HON'B t,F, IVIR..TUSTTCE S.R AVI}-IT}R A B H AT l. Tfhether reporiers of irrcal papers may he ^11^trrol t^ rraa tLo iiru:lcmonf ? cllr-t vYvL.t Lw Dt/t/ urv ,l ullttslltwltlr: 2. To he referred to ihe Reporter ttr nttt? 3.'Wheiher ihe juclgment shtruld he reportecl irr ffia T\inoof? lrl tlrw J-rLEt Dr. I Vq ) s. RAVIi'IDRA BHAT, J(ORAL) 1. The peiitir:ners in ihese prtrcecdings under Ariicle 226 of ihe Page No.1 o[ i9 I IVF(C) i.IO.6332 f}fitt3 & CW.q I 1 8-9373/2005 Digitally Signed By:AMULYA Certify that the digital file and physical file have been compared and the digital data is as per the physical file and no page is missing. Signature Not Verified ) [, Consiiiuiion seek direciions to sel aside ceriain prtlvisions cttniainecl in ihe Punjab lVaiittna'l Bank (F.mployees') Fension Regulaiitrns, 1995. These prrrvisions relaie io paymeni t:f simple inieresi. ai 6to per zrnnum up(tll refiunrl 6f hank's ulntrihuiion; commuiaiitln frlrmula anti restoratittn cr:mmuted poriion wiih effect from the date o[ daie ttl ctlmmulalitln, insiead g[ aciuzrl daie of retiremeni, in so fir as periains ttl empl(]yees whtl reiired 'ne'Lwttn i . i . I 986 and 30. 1 0. i q93. 2. All ihe,peiiiioneni were officer-employees o[ the Funjzrh Naiiona] Rank, a Banking Conrpany under the Banking Companies (Acquisition irntl Transler 1l[ Underiakings] Act, 1970 (hereafter "the Aci"), They reiired hetween iheperiorl lq86 zrnd 1993. The respondent (hereinafier relerred itr irs "FNB") framed called Regulaiions lormulziled in ierms of Scc,tion 2(19) 6f ihe Aci. The Regulzriions eniiiied ceriain classes rlf employees and reiired employees io pnsion, The primary ohjeciive app'.rrenily was to give efleci i6 zr lgng-sianciing rlemzrnd ior grzrnt tlf pensitln, ltl bank employem. The peiitionen t-all in ihe caiegory of penions cttvered tr,v Regulzrtit:n 3(1) nzrmely, olficials who retired from ihe service tlt' F]'trB heiween 1 .1 .'1986 and 1,11.1993. Ttre Regulaiions coniemplaied exercise of trpiion in writing J *) wP(C) No.6332/2fi03 & CSi/.91 1 8-937312005 Page No.2 of 19 s -l .,}, wiihin apari.icular period (120 dzrys irr:m ihe appoinieti date) anrl refunri, wiihin 60 days (alier expiry of ihe iniiiai period o[ i20 days zrllocaied for ihai. purpose), o[ ihe eniire amouni of iire bank's conirihuiion kt ihe Pnrvideni Fund, including accrued inieresi iogeiher with simpie inieresl @ 6{o per annum- fnlm ihe daie of seiilemeni oi such dues iill ihe refund rtf ihe amounts. This eniiiled such cl'.rss of employees (like ihe peiitioners) who ha.rd reiired during ihai perit:d, itt pensittn, a\ per Regulations 34 & 35 rezrd wiih Apendix-I. The iahie annexed io Appendix zrlso deiailed ihe riries of dearness a'liowance. 3- The peiitioners cpted ltrr pension in terms of ihe Schenre coniained in ihe Regulations, so('n afier ii was m'ade elfeciive in ihe,vear 1995-1996. They refunded the zrmounts along wiih inieresi (i.e. inieresi accrued ttn ihe zrmcrunts conirihuied hy ihe trank and fuiure interesi oi 6?o frtlm ihe date when ihe provideni fund amounts were seiiied ii1l ihe daie of option). Thereafier, i.he PNB granted i.he pension in terms ttf the Rcgulaiions, The peiiiioners coniinued to enjtry thai benefii. 4. Tn ihese pnrceedings, initiaied in ihc year 20fi3, ihe peiiiittners projeci grievances with regard io ihree issues namely, ihe fr:rmula conlained in ihe .) lvP(C) No.6332 f}fit'l & CW.ql 1 8-9373/2005 Page T.[o,3 of 19 > ) Tahle ttr Regulaiion 41, which spells oul ihe crtmntuialittn forrnula applicab'le to employoes reiiring afier 1.1.i986. It is averred ihai ihe lrlrmu]a adopied is arbiirary and unjusi; a person reiiring later would he in eifeci geiiing m(,re commuied zrmounis ihirn aper$(rn who iracl reiired earlier wherea.s boi.h wouid be enii'ried to ihe same amounis ai ihe iime oi restoraiiirn, of ihe commuted amounis, In other words, ihe grievance made oui here is of discrimination- 5. The strond grievance c[ ihe petiiioners is thai 'rhe condiiion wiih regzrrd io resioraticln of qrmmuted portion of pension has heen made admissihle fnrm the date of commuiaiion o[pension and noi frttm Lhe daie o[ re'riremeni, whiclr wi]l aci in :rn onefirus anti oppressive manner. Ii hzrs been las'rly urgeci ihal ihe requiremeni. of having io repay amounis wiilt accrued inieresi. zrs also 6Vo inieresi from ihe dale of sei.ilemeni of ihe provideni fund, it: ihe bank, zrs a slndiiion for grani. of pension, dues is noi jusii{'ied. 6. The Respondent- PNB in the counter at"fidavii has suhmitted that prior io the ft:rmulaiion of ihe Scheme under ihe Regulalions, Officer- employecs retiring fnrm the Pi.lB and oiher similar Fuhlic Secior Banks Page No.4 o[ 19 ,I rrrn/^\ aTn /-^A nnn^ o ^rtr .\ t I d a\.!atr t!^/\a\E w l'(u,l l\tr.o.1.1/tl,(rtj.1 6e \, w,y I I ll-v,1 /.l/l.tju:) __t were noi. eniiiled io pension. Pensiort henefiis were wtlrkeri tttti irlr ihe firsl iime, in terms of ihe Regul'.riions. As a norma'l rule, pensitrn is admissihle irl only ihose who reiire as per a pariicular Scheme bnrughi intto frrrce, pruspeciively. However, as a uniftrrm policy all hanks, alier negoiiaiittns wiih ihe concerned Employees Association/ Unittns and ihe Indian Banks' Asscniation, decided Lo extend pension io a limited class ttr section tlf ex- empkryees, viz.. prrst 1.1.iqS6 retirees. This was in spiie o[ such reiirecs having enjoSred ihe henefii o[ ihe bzrnk's coniritruiion irt iheir pnlvident lunds fr:r nearly adwade. Ntresserily for such reiirees ihepensirln trenefits were worked out on a diflfereni hasis; in efleci it consiiiuied a secttnd reirial benefii. 7. The FNB in its response hers averred th'ai al1 ihe pei.iiioners willingly accepied ihe Pension Scheme and refunded the amttunis payatrle in crder itr entiile ihemselves io ii.s provisions. Having dttne so they cannttt nt:w tum aruund and I years later, quesiitrn ihe hirsis of the Scheme. The PNB h:rs, iherefore, questioned ihe mzrini'.rinahiliiy ttf ihe piiiit)n (tn the ground of delay and 1ar:hes ir"s well as esioppel on the pari of ihe piiiioners. 8. As flar as specific chalienges io iheprovisions in ihe Regul'aiittns'.rre *L WF(C) 1{O.6332 f2fi?'3 & C1v.91 18-9373/2005 Page No.S o[ 19 ) -} concerned, it is suhnritieti ihat ihey cannot be impugned. Being a fresh or a new Scheme ihe endeavor was to grani henefii. io a maximunr number of persons. If there were minrlr defecis or de['iciencies, ihe Couri would noi .prol:e inio ihe maiter, pariiculariy if ihe Scheme hy and large, conformed icr ihe Consi.iiui.ion and fulfilleci iis ohjeciives. Hencr, ihe formulzr for crlmmuiaiion, ihe daie fixed for resklraiirlrr i.e.'rhe 1rcriod io he caiculaieri frorn ihe daie o[reiiremenl elc, are malten of prilicy, which are an irriegrai pari ol ihe provision lrrr pnsir:n. The calculai.ion oi benefiis tr: virious caiegories uncler ihe Reguizri.ions have io he viewed from an overzr'ii perspeciive and cannttt he seen lrom ihe poini cf view of one suh-caiegrtry ttr clirss. A lund is creaied ftrr ihe purp(]ses of generuiing pension henefiis, which in iurn is hzrsed upon fulfilment o[ ihe condiiions; ihai includes repaymeni of :rmounts try ceriarin relireti pers(rns arlong wiih 'd pre- deiermined raie o[inieresi. All ihese cannot he iermed as arbiirarv. 9. Mr- Puneei Aggarwirl, leirned counsel for ihe petiiioner suhrniited that the Regulaiions, in so lirr as ihey sanciion differential paymenis lrrr commuied irmounts o[ pension are discriminatory. All persons retiring heiween 1.1.1986 and 1-1 1 .1993 ftrrm one httmogene()uri gr(]up or class. As IIIT\//f\ \Tl\ r--A 6/l/r^ o ^ITt n 11n nn-^ 6i^e w r(LJ l\(r.oJ.1Ztltl(rJ dZ t- lv,y I I fi-yJ I Jf/.rtrl:t Page Nr:.6 of 19 -s\I -|' per iite Scheme each one of ihem is eniitlecl io ihe same value :ri ihe iime of restrrralit:n of iull pension, Hclwever, ihere is n() raiionaf.c ftrr discriminaiing hetween memhers of ihzf gr(lup solely on ihe trasis ttf daies of their reiirement. This ha.s led itr zr siiuaiion where pers(,n$ reiiring earlier are given lesser '.rmr:unls whereers persons reiiring lzrier enjcly ihe benelii tlf higher amounts. lrarned counsel relied up(]n ihe decision ttf ihe *lupreme Couri in l).^i. NakaraVs. Union of fndia; Aift 1983 SC 5{}. f {}. Irarned counsel 'fur ihe peiiiioner also suhmiiied that the eniiilement io restoration o[ [u11 pension, should io tle reckoned from ihe daie of reiiremeni and not fnlm the daie ol commuiaiir:n, which itxrk pla;e s('me iime in i996-W. F{e relied upon the judgmeni of ihe Supreme Couri reprrried as Conunon Cau.se i/.r. [inion of fntiia; i987 SC 2I0 for'Lhe purpose. T'r was submiited ihai once the'eniiilemeni of ihe petiiioner [o resioralion t:f i.lre full amcluni is recognireci as apari oi his henefiis, i.irere is no reasorr i.o shift the dirie as has treen done in ihe Scheme, in iire preseni naca 1 1. Ii was 'lasily coniended that Lhe Reguiaiions are void io the exi.ent ihai ihey crrmpel the pnsioners io pay 67o inierest ttn ihe hank's conirihui.ion in rr tn/n\ \Tn .^-a 6ano o /all r a'\ I i n l\^44 g\a\ie w r(u,t i\(r,o.1.11,/2l1rt3 6r Lw.v I I 6-y.1 | JtzrrrrJ Page Nc.? o[ 19 \i-, J ihe provideni. fund r:[ ihe employtr opting frrr pension. Ti is suhmilied ihai when the amounts were given, ihey were a pari. rrf ihe service benefiis and lenns antl contlii.ions of empioymeni. Hence, ihe peiiiioners zrnd oiher pensioners, seeking heneiii of a suhsecluen'r scherne, cannoi be maiie io sulfer due i.o ihe non-exisience of ihat policy when ihey superannuaied from i.ire servicrs. The condition requiring deposii oi 67o pensitrn on iire amounts secured by ihem al ihe iime o[ retiremeni as aiso ret-r,uiring ihem irl reiurn '.rr:rued intcresi 'rill ihe daie o[ 'rheir reiiremeni. is arhiirary and vitrlaies Ar'ricle 14 oi i.he Consiiiuiion of India. 12. ivTr. Jagai Aror:r,learneri counsel flor'rhe respondeni suhmiiied ihai ihe peiiiioners voluniarily rryied frrr ihe pension under ihe Regula'rions; no one compelled them io do so. 'When ihey reiired lrorrr services, iireir ierminal or reiiremen'r henefliis included ihe conirihution hy the h'.rnk io iheir pnrvidenl fund and accrued inieresi ihereon. At ihai poini of iime ilrose amounts were deerned suhsianiial- However, when ihe pension sc'hemes were fttrmulaied 'rhey were meant primarily irrr pnions w'hrl reiired around 'Lhe iimes of formulaiion of such schemes, namely 1993-1995. Neveriheless iL\ a gclodwill gesture, :rs in the c'.r.se of oiher puhlic sec.tttr harnks and a-s 'd trtn/n\ \fAr^^AAnn^ d ^trrnrrn n^-a6Ai? w r[L,t r\ tr,oJ.1ztr,rr(r,1 de L w,y I I |l-yJ t Jr zurtJ Page No.S o[ 19 *L ., € -c" unifrlrm po'iicy, PNB exiended heneliis io zr]1 ihrrse who hznj reiired irei.we.ert 1.1.l986zrnd 1.1 1,1993; i,e. lhosewhohad already availed oitheirierminirl henefits and enjoyed ihem lor a cclnsiderah]e grriod of time, In one sense ihe Scheme was compleiely fresh one a\ far as i.hey were c(lncerned; it granied ariditir:nal henefits. Such heing lhe case, zrnd having regard io lhe voluniary nature of ilre pension heneflits, which ihe peiiiioners willingly soughi frlr, ihey czrnnot compiain r:f violaiir:n c[ Ariicle 14 of ihe Consiiiuiir:n. Irarncd counsel also submitied ihirt no Scheme can prxsitrly saiisly all pnions ii seeks to cover- In ihai sense nr: policy would he perle,ci. However, the efficacy (rr rea\onahleness o[ the prilicy has io he judged fnrm 'an overall perspeciive zrnd not lrom the point o[ view of zr ferv individuals who may wani heiier henefiis, He cited ihe judgmeni of ihe Supreme Court, reporied zrs i/.f, Khanzode Vs. Union of lndin; Aift 1982 SC .917, In Lhai decision ihe Supreme Couri hari held ihai no Scheme governing service matiers can be frxrl prclofl and some seciion or ihe other, of empicyees, is bound io [ce1 aggrieved over ihe sc(]re o[ iis expeciaiions heing falsilied rtr unfu.ltilled, Such an eventualiiy a1one, howeveq would noi render ihe scheme arhiirar]l or perverse. tttn/^\ aTn /a^n 6nna n ^llt n 1 I n nn-a Gnl? W r(LJ l\ t,J,O.1.1ll/tltr.1 6a t- tY.v | | 6-yJ /.1//:trtJJ _) rlt ,c Fog. No,9 of 19 -j 13, Irarned counsel ior ihe respondenl lasl'ly suhmiiteri ihai ihe peiii.ions are highly helaied. The peiiiioners opied some iime in i.he year 1995-1996; ihey enjoyeri ihe henefiis o[pension and commuied values, a'll ihese years and have now soughi io ventila're grievancrs. Ii. was suhrniii.ed ihai in such czl\es apirri. from ihe quesiion of esioppel- which would har the peiiiirrn, iire grievances raised are zrlso highly helaied and si.ale zrnd ihe Couri. shoulci noi exercise jurisdiciion under Ariicle 226 ol ihe Consiiiuiion and acljudicale up(rn ihe meriis of ihe Schenre. 14. The Scheme under ihe Regulaiions was ftrrmu'laled in ihe year 1995. However, ii w'.r.s made elfeciive from 1q93. It was apparently in {'uriherzrnce of proiracteci deliheratictns, pursuant to demands try emplr)yees frlr ihe inirotiuciion o[ s(!me ftrrm oi pensirrn in Putrlic Secior banks. A Memorandum o[ setilement as we]l ns 'dgreemenis/ fuI0U's wiih wrlrkmen/ tlflflicers tlf ihe hank, respeciively were eniered inio between individua] hanks, as weil zL\ ihe Indiirn Banks Associaiion (IBA) along-wiih represeniaiions of such empluyees/ officers, These setilemenis eic, were finzrliz.ed in 1993. The agreemeni.s/ seiilemenis included the exicnsion of pensirtn benelits io emplo,vees wht: were in ihe service of the hanks vr/p(c) l.io, 6332 fta$3 & cw.g 1 1 8-9373t2005 Page l.kr.I 0 of 19 \ t concerned iretwtx:n 1 .1 .1986 and 1. i 1.1993, provided such pnons '.rppiied for ihe benefii. zr\ per ihe fr:rmai prescrihed hy ihe crrncerned hank and reiunded ihe amounis given 'ro iirem as ihe trzrnk's conirihuiion zrl ihe i,ime o[ iheir retiremeni. This wirs also incorporuied in the Fensic:n R.egulzrtions. The concemed provisions dealing wiih coverage oi ihe Scheme, uncler ihe Regul'aiions" rearls zrs fttllt:ws :- atntf tnffin t, LfiATINfi II , 7l Tlf f /a t r?t/\l1T r l7n 7tf t/1'flf f 74ry7 TIT TLILIII TIJI\ AIVIJ LLTI'TDIL] I I a , tl 3, Appt,LcQrnn These reguf.ations shaf.f. nppf.y to empi.oyees who, - f o) v)€re in the seryice of thc Bank on or after ihe lst day' of .lanprcry, !986 hut had. retire.d hefore the lst doy ,rf Novembcr, 19.93; and. h) exercise an option in writing within one httnclred nn) n',nnx, )n,,n f*a.o *hn anrjAn.l )as^ sn l-aanzpn.en.pll nr a€ Lttatai ,iV-Cila.y ULa.yn ,lt Urtl trLC ILwrtlaCr't! ttL+Lc tU VCLwtItC ttlOfttuc, ul tlt*, F'u>zi' nni t. -e - ... --t r.. r-r c) re.fimd within.srri) days arter the expi,1^ of the .raid ---,'^., ^8 ^-^ L,,*.t-...5 n--t nrr^sAr )--,- --.-^:9,") ;s ^la,'n,- il-,\ uut Lvrl, u_l urta ru)utLl,t cLl, atitll, Lvpcttt_r. uil_l.n JydLe_lLcL4 trt Lar.lotot: lu.I the entire {i}?touxtt $ the Bat*.'s co?rftihv.tion to the Provideni Fwtd incf.uding interesi accrued th.ereon togeiher with a. f,,*t7-nn nJ--nIn lqtaraal aJ llan *^t^ ^T JLt' I.LCr nttt,,ttuc tratct cJt- Lct tttc tLorc u_l na4 yct Lctet I/c, Lttore.ttrt utL the sqid drmount frorn tlv 'Jate o"f settlentent of the Provident Fund accoruT i tif.l. fhe date of rrfiind rf the afore.raid amount to tL^ Dnnl.. nn t' trLC lrtLJf9t\t aJt i tlIT\,/f.aUI\7r1 1^7|n rAntyr n /ftltr\rIn na44AnA? w rtL,r r\tr,o.-)JZtlvvJ aa r-!v.y I l6-yJ/J/l.tJt,rJ Fage No.1 1 of 19 I \ i 5. T'he Pension Regulzrtions enahled ihe constiiuiion of a fund which in ium was io coniain monies/a.m<lunis from srniribuiir:ns hv ihe Bank. Reguizriir:n 7 ouilines differeni iypes of coniritrutiorrs, and zrmounis lorming iirecomposiiion of i.he [und. ii provities, iry clause (c) at frrllr:ws : "the antount consi.siing of contributions of fhe Bank .,i^*^.,.i+L .'-r^-^-t -^€..-J^J J... tl, ^ ^.^-^i^..^^-,,.L ^ L...J -^l-^.1 t]iutg5 tyLlrL aflt,ltrcdl t cJwrk4.a:L{, uJ ,ttg vrltylu-|cYit lvrr.u ItLlLt, I ctLt cu. hufttru thp nntifipi rlntp httt utlur nnt €nr n,,n*inn in nr'r'rtrr'lrrnr-r, with the provisions contained in these rsgtr;.laiions." 16.The entiilement io pension io the czriegory o[employees reiiring beiween 1.1,iq86 and 31.10.1993, is spelt outhy Regulation 3a(1) and ihe amounl r:f pension is as per ihe provision coniainecl in Regulaiion 35, The Appendix-I ttr ihe Regulations rieals wiih ihe frrrmula [<rr calculaling pension and ihe izrble zrnnexed to that rlezrls wiih r.ries of l)earness Al'lowance. Regulaiion 41 enables commutaiion of p.nJi,rn; ii coniains :r iable, which is io he zrpplied lrrr ihe purposes of calculating amounis payable io ihttse w'ho ttpi such qrmmuiaiion, As noiiced earlier,'prior io ihe formulation of the regulaiions ihere wzl\ no pension scheme; ihe bank ) l'ttT\/fr\ a7t1 /aaliI nal'f O /atlt r\11n n'r-a 6AAe \ry rtL,r r\rr.o.1JzlLurrJ 6a t_w,y I t6-y.1/JtZ-t,(j:) Fog* No.12 t:[ 19 {) ) used i.o coniribuie zrmounts io ihe pnlvicleni fund arimissifrie io ihe reiiring bmployees and also grant ceri'.rin interesi on ihai, These accumula'rions along with oLher amounis cclnsiiiuied iheir ierminzrl henefiis. When ihe regul'aiicns rvere frrrmulaled in 1995, zr ]imited class of frrrmer employees were exiended ihis henefii. Ceriain conditions such irs refund o[ ihe irank's srnirihutions along with a nominal 6fo inieresi, were prescri'ned zrs a ctrndiiion frlr opiion, The rationafr is evideni. lrorn a reading of i.he Scheme, pariiculariy Regulaiion ? (c), which consiiiuies i.he lund and iire amr:unis ihai [r:rm ihe [und. ihai. are to he i.he hasis lrrr disbursemeni of ihe bank's liabiliiy under tire Pension ..Scheme. If ilrese are io tre seen, ihe grievancr of ihe peiiiir)ners? wiih regzrd io refutrd of amounts anci raie of inieresi, in my considered opinion would be illusory. Apari fnrrn ihe vriluniary naiure of ihe scheme, iis efficacy depends upon ihe siruciure of ihe fund, when ihe regulaiions were designed zrnd hroughl into irlrce. In oiher words, ihe refund of amounis along wiih inierest is an iniegral pari trf iire fund, ihai has to be uiilir.ed lor generaiing the amrrunls payable as a pension. Besitles, ihe ruie r:f inieresi ol 6To ftrr the period beiween ihe daie of final stii.lernenl of amounis paid ai. ihe i.irne of b tltn/a\ aTn /^-nnnn^ a ^lrr n tln A--^hnna w r(r-, r\ r.r.oJJZ/zr,trJ dc \- w.y r | r1-yJ t Jt zr,r,J n al ln P ta\ rage r\o. I J ol ty \ @ \ retiremeni and refund. cannol he i.ermed unreirsonable. Tnis inieresi relaies kr a i.ime when ihe hzrnks' inieresl raies on savings deposiis used io he irr ihe range of i2l.a 15To per annum (i,e, during 1986-i 993). 1'7. Tire grievance oi ihe piiiioners wiih regard io ihe formuiaiion of whai is perceived as iess i:erreficiai rlr diiiereniial commuiaiion [r:rmuia, icr my rrrind, is noi well-fr:unded. There can be nr: dispuie ahttui ihe iaci ihzri any rciteme which corrfers beneiiis on a class ol empioyees hzr"s io fu rezrsonahie, and ireai all aiike evenly, in a non-discriminaiory n'ranner. irieveriheless the quesiirlrr here is one of prrlicy. Those whrl reiire ezrrlier had thehenefii. oi use of iheirm()neys and the opprrr'runiiy to invesl ii lor pnrduciive gain for a ltrnger period o[ iime, which presunrably fhey ciici. iiowever, pem(rn$ reiiring ai lirier daies or laier periods of iime, however" did noi. enjoy such a benelii. F{cnce, fnlm zr aciurial perspeciive, lhe decision o[ ihe irank [o frume a gruded commuiaiion benefit is noi discriminzriory or aririir.rry. The hank has apparenily bzrlanced ihe comparaiive benefiis and zrdvzrrriages and, wirile keeping in mind Lhe nced to ensure that all 'are given ihe sarne resioration (of iull pension) henefii at ihe santc ievels. The Chari, io Regulaiion 41 aiso drrcs noi ciisclose so \irP(c) iio,6332r2003 & cw.gl 18-9373t20fi5 Fage No.14 of 19 \ { greai a disparity as io aiirirci ihe odium of arhii.rariness, or he iermed irraiional orperverse, requiring judicial review, r:rt ihehasis o[Ariic]e 14. i8. The quesiion as i.o wheiher pnsion has io he granied frt:rn i.he daie oi relirenreni rlr lronr ihe daie of commuiaiion, is nt:i hased up(n'l any universzrl rule. In ihe pmreni case '.r.s explained earlier, no pensiort scheme exisied ai ihe iime of reiiremeni o[ iirese employees- Under \ normal circumsiances ihey would noi have secured ihc heneiii of a pension *"h**. ft:rmulaietl later. Indeetl such is ihe position as far as pre-i..|.1986 retirees are concerni:cl. Hencti, ihe deviaiion (if il could he st: iermecl ) fnrm a ru'le requiring calcrrlzrlion of the commuiaiion priocl lrom ihe daie of retiremeni, is not arbiirary. In faci, in ihis respeci ihe .-lupreme Couri had in ihe judgmeni reporied as R, Gantihi Vs. Tlnion of Ind.ia ( i 999) I SCC i 06 clarilied th ai ii's deci sion i n Comm.on Catxe Vs. [inion of fntiia; i987 (i ) SCC i42 had required the priod o[ l5 years to he unciersiood zrs applicahle, fnlm ihe daie ttf commuiation, This is appareni from reading of Parzr 13 of ihe said judgrneni in F. Gandhi (supra) wherc ii wirs cle'arly meniioned ihai. ihe reference io ihe date of reiiremeni, has io he consirued fzrirly $o ?r\ io mean fron the date qf rtrn/n\ atn /a.1n nnnn n aIIt n I tn n^-- 6^ie !v rtr-J r\ (r,o.lJr,/r,(,rJ.1 d{ r- w,y | | 6-yJ I Jt /t\1J Page No,15 o{" 19 -l ^) conwnl$ation as any oiher inierpreia'rion would leari io an unfair ttr undue advani.age i.o pnsioners. Hence, ihe submission of ihe petitittners ihe resioraiion of full pnsion ha.s io he afier 15 years irttm ihe daie of reiiremeni" is wiihoui any trasis. i9- In ihe preseni catie, the pe'riiioners of iheir (,wn accord and presurnatrly afi.er considering al1 ihe pr<ls ancl cons, opied frrr ihe $cheme, which irlstl meant refunding ihe amounis furnished io ihem ai ihe iime of iheir reiiremeni irlong wi'rh inieresi. Th*y also opied fttr cttmmutation in ierms of Rule 41. The,v were under no compulsion io ci<t stt because as per i.he condiiions of service applicahie io ihem ai ihe iime o[ iheir retiremcnt, they had heen paid zrll terminal henefiis and dues. It the lrenefiis under ihe pnsir:n regul'aii<tns were noi suiiahle clr deirimenial it: iheir inieresls, noihing prevenied ihem {'nrm declining the oflfer, Having accepteci ihe offer, opied lor pensit:n, complied with ihe ierms o[ ihe regulaiions ancl even secured advantages frlr ihe lzrsi I years, ii is noi now open trr ihem [<l contend ihzri r:ne rlr ihe oiher part of such scheme is '.rhiirary. The peiiiion is, ihereirrre, hii hy esioppel as weli as laches. 20. One more, lzrsi, reason why ihis Couri t:ughi nr:i io enieriain ihis J rrrn/^\ aTn /-4^n n/lni n -l1lt n '! ! n a\aFln 1F!a'!a\f w r(uJ r\t r.oJJ-4tzuu) dr t-w"y I l rl-yJ /J/z(Jtr:) Page i.io, i 6 of l9 } j peiiiion is thai ihe Scheme in the Regul'ations heing a new one, cannoi. fie characi.eriz.ed as perlect. Ii seeks [o '.rchieve a trrttaci otrjeciivc of maximum coverage to riiifereni calegories of employees. in iis aiiempt for equiiy or beneiii for aii, ihe aim of aiarge scheme suclt as ihe pension scheme, would noi saiisly ihe minuie requiremenis of every persrtn i'r covers. To pui ii another way, no scheme can be perfeci. As long zrs ii. achieves iis ilroacl o'njeciives and does noi wi1lfully exciude persttns who wouid, otherwise, eni.itled io iis trenefits, ihe Couri" wttuld noi. inierdici one ()r oiher of iis lerms on ihe grounti o[ arhitrariness, Supreme Couri in iis judgnreni reprrried zrs fteserve ?ank of india Vs. C,N. Sahallatwman: i,ement SCC /4i held as follows :- "In rnatters of se.rvice conditionr, ir is dfficui.t to evol.ve an ideal sei of norrw gov-€rning vfirious conditions of ) sertice and in d grej ilrer u,here .sen,fce rules operate$ if more than one vie.w ir po.r.sihLe without ninn!Ennnnn nr'i.lnos ead-as ^^r14!!!^! .aautq4 +h^ JaEfaLJaa:aeii.Lc C,,ltLCi , ca,oo.rrt' rfi LvrrltrtutL oc'Lnc, rrlc tiltlinate clwice lws necessarily to be conditioried bi- several, conriderations ensuring iustice to as many as p oss ible anC inj us iice to ss -few,....,, .... .., . . . ...... p- iewe d in tltat light, it is try.e, there nkry be inrlivirtunl circumstavtces exeffi.pitfying injustice by postponing or del,ax-ing ihe chances af praination af ihe coniesting r,,snofi,:l.eftt vet tlwt does not ,ienv tlwm ileir '-"J lI tY\//'l\ lTn ,'^ 4A nnrt^ O /\II t at