PUNJAB NATIONAL BANK Vs. K C CHOPRA

JUDGEMENT

(1.) The respondent was the Assistant Director in the Small Industries Development Organisation, Government of India at the material time. He went on deputation on 10-3-1970 to the appellant-Bank. On the expiry of the period of deputation, he was absorbed in the permanent service of the appellant-Bank with effect from 10-3-1972. The letter of 16-3-1972 issued by the appellant-Bank sets out that he has been absorbed in the permanent service of the Bank in the category of Officer Grade B with effect from 10-3-1972. Clause 2 of this letter states that the Bank reserves the right to revise the rules relating to the officers and their conditions of service from time to time. The Government of India, Ministry of Industry and Civil Supplies by its letter dated 12-5-1975 conveyed the sanction of the President to the permanent absorption of the respondent in public interest in the service of the appellant-Bank with effect from 10-3-1972. On his permanent absorption, the eligibility of the respondent to pension/gratuity from the Government was also spelt out in the letter of sanction. The letter of sanction inter alia, also stated that, from the date of permanent absorption, the respondent will be entitled to all the benefits admissible to corresponding employees of the Bank and he will continue to be governed by the Rules of the appellant-Bank in all respects.

(2.) In 1979, the Government of India issued certain guidelines relating to the service conditions of employees of Nationalised Banks pursuant to which the appellant-Bank framed Punjab National Bank (Officers) Service Regulations, 1979. Under these Regulations, it was provided as follows:

(3.) The reference to the date 19-7-1969 in these Regulations is to the date of nationalisation of the appellant-Bank. Prior to nationalisation of the appellant-Bank, its own service regulations prescribed for its officer employee retirement at the age of 60. After nationalisation, as per Government guidelines, the new regulations prescribed the retirement age of 58 years for officer employees. Hence the Regulations provide that officer employees who were recruited prior to nationalisation shall retire on completion of 60 years of age while the officer employees of the Bank who were employed after 19-7-1969 shall retire on completion of 58 years of age. Since the respondent was absorbed in the service of the appellant-Bank on 10-3-1972, he was retired at the age of 58 years with effect from 30-4-1990 since he completed 58 years on 7-4-1990.