Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Voluntary Retirement Scheme Service Law |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Service Law – Voluntary Retirement Scheme – Whether the respondent employees are entitled to pension on completion of 15 years of service as per the State Bank of India Voluntary Retirement Scheme (VRS framed in 2000) – Held: The Central Board of Directors of the SBI accepted the memorandum for making payment of pension, in case it was not accepting the proposal, in the memorandum it ought to have said clearly that it was not ready to accept the proposals of the Government and the Indian Bank Association (IBA) and rejects the same – However, once it approved the proposals referred to in the memorandum which were on the basis of IBA’s letter and Government of India’s decision it was bound to implement it in true letter and spirit – By accepting the same, binding obligation was created upon the SBI to make payment of pension on completion of 15 years of service – It cannot invalidate its own decision by relying on fact it failed to amend the rule, whereas other Banks did it later on with the retrospective effect – They cannot invalidate otherwise valid decision by virtue of exclusive superior power to amend or not to amend the rule and act unfairly and make the entire contract unreasonable based on misrepresentation – The scheme of contractual nature has to be read in the context and in the backdrop of facts and what has been resolved by the Board of Directors – There is no ambiguity with respect to the admissibility of pension when the memorandum and the scheme are read together – In case of ambiguity and even if two interpretations are possible in the backdrop of facts of the case, one in favour of the employee has to be adopted and any clarification, if it denies the benefit of pension, has to be held to be unenforceable, illegal and contrary to law – In the instant case, the eligibility clause, when read with clauses providing the benefit, i.e., clauses 5 and 6 of the scheme, leaves no room for any doubt and makes it clear the employee with 15 years of service were treated as eligible to claim the benefit of the scheme floated by SBI – Therefore, the employees who completed 15 years of service or more as on cut-off date were entitled to proportionate pension under SBI-VRS to be computed as per SBI Pension Fund Rules. |
Judge | Hon'ble Mr. Justice Arun Mishra |
Neutral Citation | 2020 INSC 238 |
Petitioner | Assistant General Manager, State Bank Of India & Ors. |
Respondent | Radhey Shyam Pandey |
SCR | [2020] 4 S.C.R. 814 |
Judgement Date | 2020-03-02 |
Case Number | 2463 |
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