N. SURESH PRABHU Vs. CORPORATION BANK

JUDGEMENT

(1.) All these petitioners being denied of pensionary benefits under the joint note dated 27.4.2010, are before this Court. The brief background of these cases is that:

(2.) There was a persistent demand for pension as a third terminal benefit. In the banking industry, except the payment of provident fund and the gratuity, there was no provision for pensionary benefit. The service conditions of the employees was based on the terms of settlement between the employees' Union and the Management, based on such settlement, the Bank was framing the regulation with the approval of the Central Government. However, the Banking Industry noticing the persistent demand, constituted a non-statutory body called "The Indian Banks Association" (in short referred as 'I.B.A.') to negotiate with the employees' association and various Trade Unions of the Banks.

(3.) The IV Pay Commission submitted its report on 1.1.1986, recommending the liberalised pension scheme for the Central Government employees. The Bank Employees' Association and the Trade Unions of the Banks found that, the liberalised pension scheme also be introduced in the Banking industry, as the liberalised pension scheme is recommended by the IV Pay Commission for Central Government employees. Added to this, the Reserve Bank of India introduced pension scheme for its employees on 1.11.1990, with effect from 1.1.1986. Boosted by the Reserve Bank of India's decision to provide pensionary benefit to its employees, the banking employees intensified their demonstration. When, despite their repeated demands, and agitation, both the Central Government as well as the I.B.A. did not heed to their request, the Trade Unions of the Banks decided to go on indefinite strike and call notice was given to go on strike from 2.11.1993. In the meanwhile, the I.B.A. having noticed the seriousness of the situation, for the first time, the I.B.A. and the Trade Union agreed to meet on the issue of providing pension to the Bank employees, accordingly, on 21.10.1993, they agreed to formulate the pensionary scheme on par with R.B.I. In pursuance of negotiations on 25.10.93 a recommendation was sent to the Government of India for adopting pensionary benefit to the employees of the commercial banks. In furtherance of recommendation, both agreed to fix a date for signing the agreement. As many as 59 banks represented through I.B.A. signed the memorandum of agreement on 29.10.1993, fixing the effective date from 1.11.1993. It was agreed to introduce the pensionary benefit as a second retirement benefit, as against the contributory provident fund.