Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Service Law – Punjab State Cooperative Agricultural Land Mortgage Banks Service (Common Cadre) Rules 1978 – r.15(ii) |
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 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Service Law – Punjab State Cooperative Agricultural Land Mortgage Banks Service (Common Cadre) Rules, 1978 – r.15(ii) – Employees Provident Fund and Miscellaneous Provisions Act, 1952 – Constitution of India – Articles 14, 16, 21 – Pension Scheme – Retrospective amendment taking away the benefit available to employees under the existing rule – Correctness of – Held: An amendment having retrospective operation which has the effect of taking away the benefit already available to the employee under the existing rule would divest the employee from his vested/accrued rights and is thus violative of the rights guaranteed u/Articles 14 & 16 – In the present case, Bank pension scheme was introduced from 01.04.1989 – Options were called from the respondent-employees and those who gave option became member of the pension scheme and accordingly pension was continuously paid to them – Only in the year 2010, when the Bank failed in discharging its obligations, employees approached High Court – The Bank later on withdrew the pension scheme by deleting clause 15(ii) by amendment in 2014 which was introduced w.e.f 01.04.1989 – Employees who availed the benefit of pension under the scheme, their rights indeed stood vested and accrued to them and any amendment to the contrary made with retrospective operation to take away the right accrued to the retired employee under the existing rule is violative of Articles 14 & 21– Further, non-availability of financial resources is not a defence available to the appellant-Bank in taking away the vested rights accrued to the employees that too when it is for their socioeconomic security – Pension is not a bounty – Appeals dismissed. Service Law – Concept of vested/accrued rights of an employee – Discussed. Doctrines/Principles – Legitimate expectation vis-à-vis a vested/accrued right – Held: There is a distinction between the legitimate expectation and a vested/accrued right in favour of the employees – The rule which classifies such employee for promotional, seniority, age of retirement purposes operates on those who entered service before framing of the rules but it operates in futuro – In a sense, it governs the future right of seniority, promotion or age of retirement of those who are already in service. Service Law – Pension Scheme – Plea of financial distress taken by the appellant-Bank to justify the impugned amendment taking away the right accrued to the retired employee under the existing rule – Held: Not acceptable – Rule making authority was presumed to know repercussions of the particular piece of subordinate legislation and once the Bank took a conscious and introduced the pension scheme, it can be presumed that the competent authority was aware of the resources from where the funds are to be created for making payments to its retirees. |
Judge | Hon'ble Mr. Justice Ajay Rastogi |
Neutral Citation | 2022 INSC 34 |
Petitioner | The Punjab State Cooperative Agricultural Development Bank Ltd. |
Respondent | The Registrar,cooperative Societies And Others |
SCR | [2022] 5 S.C.R. 291 |
Judgement Date | 2022-01-11 |
Case Number | 297-298 |
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