Skip to main content

Supreme Court: Bank employee can claim benefits even on removal from service

The Supreme Court has ruled that a bank employee can claim pension and encashment of leave even when removed from service.

The case pertained to the denial of the claims of late S.K. Kool who was removed from service ‘as a measure of punishment’ by Bank of Baroda.

In response to a special leave petition by the bank, Justice Chandramouli Kumar Prasad ruled on December 11 that employee’s heirs are entitled to superannuation benefits.

He ordered Bank of Baroda to disburse the entire amount that the respondent is found entitled to along with interest at 6 per cent within six weeks.

He did not find any merit in the bank’s appeal and dismissed it with costs of Rs 50,000 to be paid out along with other dues.

The bank had argued that where cessation of service takes place on account of employee’s resignation or his dismissal/termination, all leaves to his credit lapse.

INDUSTRIAL TRIBUNAL

The matter was initially referred to the Industrial Tribunal which had ruled that the denial of superannuation benefits was not legal or justified.

It said that the employee is entitled to all termination benefits, such as pension, leave encashment, gratuity and commutation of pension.

The bank contested this and approached the High Court of Allahabad. It did not get relief there either, and moved the special leave petition.

BIPARTITE SETTLEMENT

Shilpa Singh, counsel for the employee’s heirs, argued that the order of the disciplinary authority inflicting the punishment itself entitled the employee to superannuation benefits.

The court noted that the bipartite settlement containing terms and conditions of service of employees provides for removal from service with pension benefits ‘as would be due otherwise under rules and regulations prevailing at the relevant time.’

“We have no doubt that employees…removed from service in terms of clause 6(b) of the bipartite settlement shall be entitled to superannuation benefits…,” it added.

Article referred: http://www.thehindubusinessline.com/industry-and-economy/banking/bank-staff-can-claim-benefits-even-on-removal-from-service-apex-court/article5570654.ece

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more