ALLAHABAD BANK Vs. A.C. AGGARWAL

JUDGEMENT

(1.) The question which arises for consideration in this appeal filed against the order of the Allahabad High Court is whether the respondent, who had sought voluntary retirement from service and was paid gratuity by the appellant under the Payment of Gratuity Act, 1972 (for short, 'the 1972 Act') along with Contributory Provident Fund is entitled to pension.

(2.) The appellant's predecessor, i.e., Allahabad Bank Ltd. was established in 1865. Its employees were given pensionary benefits w.e.f. 14.3.1890. After 22 years, the Board of Directors of the appellant's predecessor passed Resolution dated 2.3.1912 vide which the benefit of Contributory Provident Fund was extended to the employees. The appellant's predecessor was nationalized in 1969 along with 13 other commercial banks through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1970, which was repealed by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (for short, 'the 1970 Act'). Section 12(2) of that Act reads as under:

(3.) In 1974, the appellant framed a scheme titled 'Allahabad Bank Employees' Pension Scheme (Old)' (for short, 'the Old Pension Scheme'). Thereafter, circular dated 10.3.1975 was issued and the employees/officers were given the choice to opt for payment of gratuity or pension under the Old Pension Scheme. After four years, the appellant framed the Allahabad Bank (Officers') Service Regulations, 1979 (for short, 'the Regulations'). In terms of clause 46 of the Regulations, the officers became entitled to gratuity equivalent to one month pay for every completed year of service subject to a maximum of 15 months. The proviso to Regulation 46 postulated payment of additional gratuity at the rate of half month's pay for each completed year of service to those who had completed more than 30 years service. After 20 years, the appellant notified Allahabad Bank Employees' Pension Regulations, 1995.