Punjab-Haryana High Court
U. K. Walia vs Punjab National Bank And Others on 16 August, 2012
Author: Rajesh Bindal
Bench: Rajesh Bindal
Civil Writ Petition No. 716 of 2011 (1)
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
Civil Writ Petition No. 716 of 2011 (O&M)
Date of decision : 16.8.2012
U. K. Walia ..... Petitioner
vs
Punjab National Bank and others ..... Respondents
Coram: Hon'ble Mr. Justice Rajesh Bindal Present: Mr. Rohit Ahuja, Advocate, for the petitioner.
Mr. Santosh Sharma, Advocate, for the respondents.
Rajesh Bindal J.
The petitioner, who retired as Chief Manager from the Punjab National Bank, has approached this court praying for quashing of the orders dated 23.4.2010 and 7.8.2010, whereby his request for re-fixation of pension has been declined.
Briefly the facts are that the petitioner joined the Punjab National Bank as Clerk on 14.2.1973. During his career, he got due promotions. Lastly he was promoted as Chief Manager (SMG Scale-IV) on 17.6.2006. He was transferred to Punjab Gramin Bank, Kapurthala and posted there as General Manager on deputation with effect from 10.2.2006. It is further pleaded that General Managers of Regional Rural Banks were to be paid salary and allowances of next higher grade for the period of deputation. It was also mentioned that on his reversion back to the parent cadre, his salary was to be re-fixed in the substantive scale. The petitioner worked as General Manager in the Punjab Gramin Bank from 10.2.2006 to 4.1.2010. He retired on attaining the age of superannuation on 31.1.2010. It is further pleaded that as per the pension payment order his pension was fixed at ` 12,380/- per month by taking his last 10 months salary as he would have drawn in case in service with Punjab National Bank. The Civil Writ Petition No. 716 of 2011 (2) petitioner raised objections to the same, but his representations were rejected vide impugned orders.
Learned counsel for the petitioner while referring to clauses 2
(d), (e), 35 and 38 of the Punjab National Bank (Employees') Pension Regulations, 1995 (for short, 'the Pension Regulations'), submitted that pension of an employee is to be calculated on the basis of average emoluments drawn by him for a period of ten months prior to his retirement from service in the bank. In the present case, though the petitioner had been drawing emoluments of ` 27,240/- per month, however, still his pension has been fixed by taking monthly emoluments for last months @ ` 24,760/-, which is in contravention of the aforesaid Pension Regulations. He further submitted that any instructions issued by the bank which run contrary to the Pension Regulations cannot be relied upon for the purpose of determination of pension to be drawn by the petitioner. The instructions cannot override the Pension Regulations. The Pension Regulations have been framed in exercise of powers conferred by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 in consultation with the Reserve Bank of India and with the previous sanction of the Central Government. In support of his arguments, he relied upon a judgment of Hon'ble the Superme Court in Uday Pratap Singh and others vs The State of Bihar and others 1994 (5) SLR 608.
On the other hand, learned counsel for the respondent-bank submitted that the petitioner was sent on deputation to Punjab Gramin Bank where as per the terms, he was to draw higher pay. It is so mentioned in the letter, Annexure P-1. It was a kind of incentive to the post to which the petitioner was sent on deputation. It was not a cadre post. His substantive designation was of Chief Manager whereas he was sent on deputation as General Manager with the Punjab Gramin Bank.
Learned counsel for the respondent-bank further submitted that the issue regarding calculation of pension for the employees of the bank who were sent on deputation to the Regional Rural Banks was not clear in the Pension Regulations. The same was clarified vide communication dated 11.1.1999 clearly providing that the Government of India, Ministry of Civil Writ Petition No. 716 of 2011 (3) Finance (Banking Division) has advised that the pension is to be calculated on the basis of substantive pay of an officer which he would have drawn in the parent cadre, but for his deputation. That shall be taken as pay for calculation of 'average emoluments' and not what is actually drawn by him in the higher scale in the loanee organisation or bank. In the present case, the petitioner was sent on deputation to Punjab Gramin Bank in a higher scale to which he was not otherwise entitled to, had he been posted in any Branch of the Punjab National Bank as per his substantive designation. There is no question of overriding the Pension Regulations as the same being silent on the issue, it has been clarified by issuing the instructions. The same do not run contrary to the provisions of the Pension Regulations. In support of his arguments, reliance was placed upon a judgment of Hon'ble the Supreme Court in Joint Action Committee of AIR Line Pilots' Association of India (ALPAI) and others vs Director General of Civil Aviation and others (2011) 5 SCC 435.
Heard learned counsel for the parties and perused the paper- book.
The relevant clauses of the Pension Regulations are extracted below:-
"2 (d) "average emoluments" means the average of the pay drawn by an employee during the last ten months of his service in the Bank;
(e) "Bank" means Punjab National Bank mentioned under column 2 of THE FIRST SCHEDULE OF THE Act;
xx xx xx xx
35. Amount Of Pension
1) Basic pension and additional pension, wherever
applicable, shall be updated as per the formulae given in Appendix-I.
2) In the case of an employee retiring in accodance with the provisions of the Service Regulations or Settlement after completing a qualifying service of not less than thirty three years the amount of basic Civil Writ Petition No. 716 of 2011 (4) pension shall be calculated at fifty percent of the average emoluments.
3) a) Additional pension shall be fifty per cent of the average amount of the allowances drawn by an employee during the last ten months of his service;
b) No dearness relief shall be paid on the amount
of additional pension.
xx xx xx xx
38. Determination Of The Period Of Ten Months For Average Emoluments
1) The period of the preceding ten months for the purpose of average emoluments shall be reckoned from the date of retirement."
The letter dated 14.2.2006 (Annexure P-1) placed on record by the petitioner shows that he was to get salary in the Punjab Gramin Bank in a grade higher than he was getting in the Punjab National Bank. It has been specifically mentioned therein that Chairman and General Managers of Regional Rural Banks shall be paid salary and allowances of the next higher grade for the period of deputation. Such fixation shall not confer any other benefit than the temporary monetary gain in the basic pay and DA for the specific period of deputation. The relevant part of the aforesaid letter is extracted below:-
"Incentive for RRB Deputation- Re- fixation of salary. It has been decided that Chairman & General Managers of RRBs shall be paid salary and allowances of the next higher grade for the period of deputation. Their salary will be regulated in a manner as the salary is fixed when officer is placed in the immediate higher grade. Such fixation shall not confer any other benefit than the temporary monetary gain in the basic pay and DA and other attendant/ consequential benefits for the specific period of deputation to RRBs. The officer shall not be entitled to any perquisites of the higher scale and that on his reverting Civil Writ Petition No. 716 of 2011 (5) back to the parent organization his salary shall be re-fixed in his substantive scale."
A perusal of the aforesaid letter further shows that the petitioner had been sent on deputation. The Pension Regulations, as have been referred to, provide that an employee retiring after completing a qualifying service of not less than thirty three years shall be entitled to pension calculated at fifty percent of the average emoluments. The term 'average emoluments' has been defined in Clause (d) of the Pension Regulations to mean the average of the pay drawn by an employee during the last ten months of his service in the Bank. The Bank has also been defined as Punjab National Bank. The parent bank of the petitioner is Punjab National Bank, who is his employer. The substantive post of the petitioner in the bank was Chief Manager in terms of which he was drawing salary of ` 24,760/- with basic pay of ` 24,140/- + ` 620/- (fixed personal allowance). As the petitioner was sent on deputation to Punjab Gramin Bank, as an incentive he was designated as General Manager and was paid salary in a grade higher than the grade in which he was getting salary in the Punjab National Bank. The petitioner had been drawing salary of ` 27,240/- with basic pay of ` 26,620/- while serving with the Punjab Gramin Bank.
The contention of learned counsel for the petitioner is that his actual last drawn salary should be taken for the purpose of calculation of his pension, whereas the stand of the respondents is that the petitioner had been sent on deputation to Punjab Gramin Bank where as an incentive, he was paid higher scale of pay, is not entitled to draw any benefit therefor for calculating his retiral benefits as the same had been clarified to the petitioner at the very initial stage.
From a perusal of the communication, Annexure P-1, which provides for incentives for postings in Regional Rural Banks it is evident that payment of salary in a grade higher than the entitlement of an employee while serving in the bank was temporary. It was limited to the period of deputation, specifically providing therein that it will not confer any right on him. Further clause 2 (d) of the Pension Regulations provides that average emoluments are the average of the pay drawn by an employee during the last Civil Writ Petition No. 716 of 2011 (6) ten months in the bank. The bank has been defined to be Punjab National Bank. In nine out of last ten months of his service before retirement, the petitioner was not serving in the Punjab National Bank. He had been sent on deputation to Punjab Gramin Bank where as an incentive he was paid higher pay.
As the regulations were not clear on the issue regarding determination of pension in a case where an employee was getting higher pay while on deputation, issue was clarified vide circular dated 11.1.1999. It is specifically mentioned in the aforesaid circular that the average emoluments in such circumstances would mean the pay which an employee of the bank would have drawn in the parent bank but for his deputation. It has further been mentioned in the aforesaid circular that the same has been issued in terms of the advise of the Government of India, Ministry of Finance (Banking Division). In these circumstances, it cannot be said that the circular runs contrary to the provisions of the Pension Regulations rather it is supplemental. It only clarifies a point which has not been dealt with in the Pension Regulations.
It is not in dispute in the present case that the pension of the petitioner has been calculated in terms of the salary, the petitioner would have drawn in the parent bank namely Punjab National Bank. The petitioner cannot be given any benefit of the higher grade given to him as incentive while on deputation with Punjab Gramin Bank.
For the reasons mentioned above, I do not find any merit in the present writ petition. Accordingly, the same is dismissed.
16.8.2012 (Rajesh Bindal) vs. Judge