SYNDICATE BANK versus N. R. BHAT

SYNDICATE BANK versus N. R. BHAT

The Court held that the respondent-employee could not be permitted to exercise the option for pension belatedly in 2019 because, upon the setting aside of the dismissal in 2005, his employment relationship was restored and he had opportunities (including under the pension circular) to opt which he failed to exercise; however, because the petitioner-Bank unlawfully withheld amounts under the Joint Memo of 17.06.2019, the Bank was directed to pay simple interest at 12% per annum w.e.f. 01.07.2019 until payment, with the rate to increase to 15% per annum if the interest component was not paid within four weeks.

Parties
Petitioner Bank: Syndicate Bank; Respondent Employee: N. R. Bhat
Jurisdiction
India
Judgment Date
10 October 2023
Procedural Posture
Special Leave Petition (civil) No.7277 of 2020 / Disposed
Outcome
Petition for special leave to appeal disposed of
Legal Topics
Retiral Benefits, Pension, Settlement, Interest on Withheld Amounts
Service Law Labour and Employment Law Retiral Benefits Pension Settlement Interest on Withheld Amounts

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Parties

Syndicate Bank

Petitioner Bank

N. R. Bhat

Respondent Employee

Procedural Posture

Special Leave Petition (civil) No.7277 of 2020 / Disposed

Legal Issues

  1. 1 Whether respondent-employee could be permitted to exercise the option for pension belatedly in 2019 after having earlier opportunities to opt and after a prior dismissal which was subsequently set aside
  2. 2 Whether the High Court erred in permitting the respondent-employee to exercise the option of availing retiral benefits despite the Joint Memo of Settlement
  3. 3 Whether petitioner-Bank is liable to pay interest for withholding settlement dues and at what rate

Ratio Decidendi

The Court held that the respondent-employee could not be permitted to exercise the option for pension belatedly in 2019 because, upon the setting aside of the dismissal in 2005, his employment relationship was restored and he had opportunities (including under the pension circular) to opt which he failed to exercise; however, because the petitioner-Bank unlawfully withheld amounts under the Joint Memo of 17.06.2019, the Bank was directed to pay simple interest at 12% per annum w.e.f. 01.07.2019 until payment, with the rate to increase to 15% per annum if the interest component was not paid within four weeks.

Court Disposition

Petition for special leave to appeal disposed of

Orders

  • Joint Memo dated 17.06.2019 to be implemented as previously permitted by this Court
  • Petitioner-Bank directed to pay simple interest at the rate of 12% per annum to the respondent-employee from 01.07.2019 until the date the settlement amount is released in his favour