M. Venkateswara Rao vs Andhra Bank Represented By Its Chairman ...

1. Employees resigned from service. We are concerned with one employee of the Life Insurance Corporation of India; one employee of Digitally signed by POOJA ARORA the United India Insurance Company Limited and a batch of employees Date: 2019.03.15 17:28:17 IST Reason: 1 of Andhra Bank. These employees resigned when the pension schemes in respect of these institutions in question were not in force. The pension schemes came into force subsequently, but with retrospective effect. The question, which, thus, arose was whether these employees, who had resigned from service post the date from which the pension schemes were made applicable, but prior to the date on which the schemes got notified, would be entitled to the benefit of the pension schemes in question. A Bench of two Judges of this Court found that there was a divergence of judicial views of this Court, and the matter needed to be examined by a larger Bench. The reference order was passed in CA No.14739/2015 and that is how the matter is before us.

2. We deem it appropriate to set forth the factual matrix, relevant for the determination of the controversy, in respect of the lead matter and thereafter, we will analyse the legal principles and accordingly decide the connected matters.

5. More than 5 years later, the Life Insurance Corporation of India (Employees) Pension Rules, 1995 (for short ‘Pension Rules’) were 3 promulgated, on 28.6.1995, but were brought into force with retrospective effect, from 1.11.1993, unless expressly provided against. The applicability of Section 3(1)(a) of the Pension Rules made the scheme applicable to all the employees who were in service of the LIC on or after 1.1.1986, but had retired before 1.11.1993, given that the employees satisfied the other conditions provided for in the Pension Rules.

9. The present appeal has thereafter been filed by the LIC, in which the reference order was passed.

10. In order to appreciate the reasoning of the Courts below, supported by the respondent in the appeal and the arguments advanced on behalf of the appellant also on the same lines, but repelled by the Courts below, we consider it necessary to first appreciate the Pension Rules, which have 2 (2004) 9 SCC 461 3 CWP No.10157/1996 decided on 8.1.2010 6 been brought into force.

27. The appellant joined the respondent United India Insurance Company Limited as a Clerk on 13.8.1960 and served for a long period of 32 years. He, however, tendered his resignation on 1.10.1993 for “family reasons”, but on his own, termed it as “premature retirement”, so as to claim future benefits. Request for waiving of notice period was also 20 made. The letter of resignation was accepted on 30.11.1993, giving effect to such resignation from that day itself. It is relevant to note that at the time the appellant resigned, he was governed by the General Insurance (Termination, Superannuation and Retirement of Officers and Development Staff) Scheme, 1976 (for short ‘1976 Scheme’), which had no concept of voluntary retirement. However, almost three years after the appellant resigned, an amendment was made to the 1976 Scheme by inserting clause 4(4A), introducing the concept of Voluntary Retirement Scheme on 1.11.1996. This clause, however, was made retrospectively applicable from 1.11.1993. It appears that the object was to have consonance with the General Insurance (Employees’) Pension Scheme, 1995 (hereinafter referred to as the ‘1995 Scheme’).

26. We are, thus, of the view that the impugned orders in this case cannot be sustained and are liable to be set aside, and the writ petition filed by the respondent consequently stands dismissed. C.A. No.10904 of 2016

35. In view of what we have discussed aforesaid, all three aspects stated by us are relevant and disentitle the appellant to any relief. We have already explained the difference between resignation and voluntary retirement. Mere categorisation by the appellant himself of his resignation as “premature retirement” is of no avail. The same principle 25 discussed aforesaid, of forfeiture of service, would be applicable here and the appellant did not have the requisite age when he resigned even were the 1976 Scheme to be made applicable.

36. We may also find that the appellant remained silent for years together and that this Court, taking a particular view subsequently, in Sheel Kumar Jain16, would not entitle stale claims to be raised on this behalf, like that of the appellant. In fact the appellant slept over the matter for almost a little over two years even after the pronouncement of the judgment.

37. Thus, the endeavour of the appellant, to approach this Court seeking the relief, as prayed for, is clearly a misadventure, which is liable to be rejected, and the appeal is dismissed.

SLP(C) Nos.5716-5719 of 2016

38. Leave granted.

39. The appellants in this case were employees of the respondent- Bank, viz., Andhra Bank, who resigned from service during the window period of 1991 and 1993 after giving three months’ notice. The grounds for resignation varied. The employees were governed by the then 16 (supra) 26 existing Service Rules, being the Andhra Bank Officers’ Service Regulations, 1982. It was much later that Andhra Bank (Employees) Pension Regulations, 1995 (for short ‘Pension Regulations’) were introduced, effective from its date of notification. There was no retrospectivity involved in this case. But the Pension Regulations were made applicable for employees, who ‘retired’ on or after 01.01.1986 but before 01.11.1993.

41. A Division Bench of the Andhra Pradesh High Court, in terms of the impugned order dated 09.10.2015 rejected the petition filed by the appellants on the ground that when the appellants resigned, there was no Pension Regulations providing for voluntary retirement in existence, and merely because the Pension Regulations have been made applicable for persons retiring within a past period of window, it would not give the same benefit to the employees who had resigned from service. The reasoning of the judgment is predicated on M.R. Prabhakar & Ors. v. Canara Bank & Ors.17 17 (supra) 27

43. In view of the legal principles discussed by us hereinbefore, this appeal, thus, must also fail and, is accordingly dismissed. 18 (supra) 28

44. The net result of the aforesaid discussion is that C.A. No.14739 of 2015 is allowed while C.A.No.10904 of 2016 and C.A. Nos. 3138-3141 of 2019 @ SLP©Nos.5716-5719 of 2016 are dismissed, leaving the parties to bear their own costs.

45. The reference is answered accordingly.

46. We, however, make it clear that for amounts already paid to the respondent in C.A. No. 14739 of 2015, under the interim directions dated 26.11.2015, refund of the same would not be claimed.

March 15, 2019.