G CHANNARAMAKRISHNA S/O GANGA REDDY AND OTHERS Vs. UNION OF INDIA BY ITS SECRETARY MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES BANKING DIVISIONA, JEEVANDEEP BUILDING, PARLIAMENT STREET NEW DELHI- 110001 AND OTHERS

JUDGEMENT

(1.) IN these writ petitions, the petitioners have sought for quashing of the joint note dated 27.4.2010 and the memorandum of settlement produced at Annexures -A and B insofar as it relates to condition of petitioner Nos. 1, 2, 4 and 5 requiring the Bank employees to contribute 2.8 times of revised pay scale to become pension optees. Relating to contribute of fund additional of 56% of the Management contribution to the Provident Fund in respect of the retirees like petitioner Nos. 3, 6 and 7 and for a mandamus directing respondent Nos. 1 to 4 to implement the Canara Bank (Employees') Pension Regulations, 1995 and Central Bank of India (Employees') Pension Regulations, 1995, without insisting on any other condition other than stipulated in the said Pension Regulations. The main grievance of the petitioners is that, under the Pension Regulations, there is no requirement for contribution of additional fund by the employees, who were in employment as on 29th September 1995 and continued as on the date of signing of the Memorandum of Settlement and Joint Note, to contribute 2.8 times of the revised pay scale to opt for pension in terms of the settlement and insofar as retirees are concerned, to contribute by refunding additional fund of 56% towards the Management contribution to the Provident Fund.

(2.) IT is not in dispute that, there was a prolonged demonstrative resistance by the employees of different Banks demanding for pension on their retirement from the service. The Indian Banks Association, All India Bank Employees' Association, National Confederation of Bank Employees, Bank Employees' Federation of India, Indian National Bank Employees' Federation and National Organization of Bank Workers, entered into a settlement dated 27th April 2010.

(3.) IN case of Bank employees, who were in service prior to 29.9.1995 in case of Nationalized Bank and 26.3.1996 in case of Associate Banks of State Bank of India required to refund within 30 days after the expiry of the said period of 60 days, the entire amount of banks contribution to the Provident Fund and interest accrued thereon received by the employees on retirement together with then share in contribution towards meeting 30% of contribution i.e., Rs. 3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(ii), (iii) and (iv) of the said agreement. On an individual basis, the payment over and above the bank's contribution to Provident Fund and interest thereon was worked out at 56% as additional fund of bank's contribution to the Provident Fund and interest thereon received by the employees on retirement.