RESERVE BANK OF INDIA Vs. M.T. MANI

JUDGEMENT

(1.) In this Appeal, challenge has been raised by the Reserve Bank of India ("RBI") to the Division Bench Judgment of the Kerala High Court dtd. 18/12/2023 whereby the appeal preferred by Respondent No.1 against the Judgment of a Single Judge dismissing his Writ Petition for grant of pension with effect from the date of his retirement i.e. 1/12/2014, stood dismissed after he exercised his option as per the RBI Regulations/Circular dtd. 14/9/2020.

(2.) The facts are not in dispute and therefore are being referred at the very outset.

(3.) The employees of the RBI prior to 1990 were governed by the Contributory Provident Fund ("CPF") and the payment of the Gratuity Act, 1972 ("Gratuity Act"). For the first time, on 29/10/1990, the RBI with approval from its Central Board of Directors introduced the RBI Pension Regulations, 1990. Employees were informed vide Administration Circular No. 6 to the effect that the said regulations would come into effect from 1/11/1990 giving an option to the existing employees to join the said Pension Scheme or to continue with the RBI's CPF. All new employees who joined on or after 1/11/1990 were to be governed by the 1990 Regulations. It also provided that the employees in service as on 1/1/1986 who retired before 1/11/1990 were also eligible for pension upon refunding the amount of CPF share of the RBI with accrued interest as received by them on their retirement, along with simple interest thereon at the rate of 6%. According to Regulation 31 thereof, employees retiring between 1/1/1986 and 31/10/1990, although eligible to join the Pension Scheme, would receive the pension only from 1/11/1990 onwards, with no arrears for the period before the said date. On 7/2/1992 RBI issued another Administration Circular No. 5 amending the Pension Regulations, 1990 effective from 6/2/1992. Existing employees (excluding those on leave preparatory to retirement) were given a fresh option to switch to the Pension Regulations. Here again, no retrospective pensionary benefits were granted.