AIBOC CIRCULAR NO. 60 DATED 03.07.2012

AIBOC issued its circular No. 60 dated 03.07.2012 on pension eligibility of employees who resigned from service of the banks after completing 20 years of service. We are placing the same here for our readers.

CIRCULAR NO. 60                                                       DATE: 03.07.2012

TO ALL AFFILIATES/MEMBERS:

KARNATAKA HIGH COURT DELIVERS A LANDMARK JUDGEMENT: EMPLOYEES WHO RESIGNED FROM SERVICE OF THE BANKS AFTER COMPLETING 20 YEARS OF SERVICE ARE ELIGIBLE FOR PENSION

The Hon’ble High Court of Karnataka at Bangalore, in a landmark Judgement in the case of WP No. 24158 – 24160/2011, Vijaya Bank Vs. Sri.C.Narasimhappa, have ordered that the petitioners, who resigned from service of the Bank, are eligible for pensionary benefits as they have completed the minimum qualifying service of 20 or more years of service, though they have resigned from service of the Bank. The Hon’ble Court has averred that merely because the petitioners have resigned from service of the Bank, they cannot be denied the pension benefit.’

We recall here the spate of letters addressed by us to IBA urging upon them to consider pension option to the resignees who have completed the minimum qualifying service for pension of 20 years or more but IBA remained silent on the issue. The judgement has vindicated our stand.

We have addressed a letter to IBA urging upon them to honour the verdict of the Hon’ble High Court and instruct all the Banks to pay pension to all the officers who resigned from the service of the Bank. A copy of the letter addressed to IBA annexed is self-explicit.

Further developments in the matter will be informed to you.

With greetings,

Yours faithfully,

Sd/-

(D.S.RISHABADAS)

GENERAL SECRETARY

                                                                                               

No.1452/124/12                                                                                 29.06.2012

To,

The Chairman,

Indian Banks’ Association,

Stadium House,

6th Floor, Block No.3,

Veer Nariman Road,

MUMBAI – 400 020.

Dear Sir,

KARNATAKA HIGH COURT DELIVERS A LANDMARK JUDGEMENT - EMPLOYEES WHO RESIGNED FROM SERVICE OF THE BANKS AFTER COMPLETING 20 YEARS OF SERVICE, ARE ELIGIBLE FOR PENSION

The High Court of Karnataka at Bangalore in a land mark judgement in the case of Sri. C.Narasimhappa and others Vs Vijaya Bank, have ordered that the petitioners who have completed 20 years or more of service, though have resigned from the service of the Bank are entitled for Pension and the respondent Bank should extend the benefit of pension to all the petitioners.

We have enclosed a copy of the Judgement in the case of WP No.24158 – 24160/2011 and draw your kind attention to the order of the judge who, perusing the evidence placed before him has given a very well reasoned order that, the petitioners are eligible for pensionary benefits, as all of them have completed more than 20 years of service, the minimum qualifying service for pension and merely because the pensioners have resigned from service, is not a ground for denying the pension.

Keeping the foregoing in view we request you to instruct the respondent Bank, i.e., Vijaya Bank to extend the Pension benefit to all the petitioners at the earliest.

As the case has been decided on the basis of legal facts, the respondent Bank may be instructed not to file an Appeal before the Bench in Karnataka High Court or in the Supreme Court of India.

Please advise other Public Sector Banks to extend pensionary benefit to all similarly placed Officers/Employees. As the number of such Officers/Employees in the Banking Industry is very small, there will not be any financial burden on the Banks.

Please expedite.

Thanking you,

Yours faithfully,

Sd/-

(D.S.RISHABADAS)

GENERAL SECRETARY