S C AGGARWAL Vs. ALLAHABAD BANK

JUDGEMENT

(1.) The challenge in the present writ petition is to the stipulation made in the letter dated 5.6.2006, Annexure P-5, whereby the respondent- Bank put a condition for not paying interest on the arrears of pension.

(2.) The petitioner applied for voluntary retirement under the Allahabad Bank Employees Voluntary Retirement Scheme-2000 (hereinafter referred to as the 'VRS Scheme-2000'). The petitioner was relieved on 30.4.2001 from the services of the Bank.

(3.) The petitioner sought the pension under the Old Pension Scheme, in addition to gratuity payable to the petitioner under the Payment of Gratuity Act, 1972. A circular, Annexure P-4, was issued by the respondent-Bank on 4.6.2002, whereby it was clarified that the employees who have retired under the VRS Scheme-2000 framed by the Bank, may now refund the gratuity received by them with an irrevocable undertaking to the effect that they desire to avail Bank's old pension in lieu of gratuity. In view of the said Circular, the petitioner was permitted to deposit the gratuity interest, but with interest @ 9% p.a. Such interest was deposited by the petitioner on 28.6.2006. Thereafter, the amount of pension was released to the petitioner on 13.7.2006.