ISSAC T M versus THE IDUKKI DISTRICT CO-OPERATIVE BANK LTD & ORS.

ISSAC T M versus THE IDUKKI DISTRICT CO-OPERATIVE BANK LTD & ORS.

The Supreme Court held that the appellant was entitled to pension with effect from 1 February 2007 under paragraph 19 of the Pension Scheme; the bank's failure to forward pension papers and delay in remittance due to disciplinary proceedings could not defeat the appellant's entitlement, and para 5(2) could not be applied to deny arrears where the delay was attributable to the bank; accordingly the High Court judgment was set aside and orders were made for payment of arrears and computation/remittance of any interest.

Parties
Appellant: Issac T M; First Respondent: The Idukki District Co-operative Bank Ltd; Second Respondent: Kerala State Co-operative Employee Pension Board
Jurisdiction
India
Judgment Date
12 July 2019
Procedural Posture
Civil Appeal / Appeal to Supreme Court
Outcome
Appeal allowed; impugned judgment of the High Court set aside.
Legal Topics
Pension, Superannuation, Disciplinary Proceedings, Remittance, Arrears, Interest
Service Law Pension Superannuation Disciplinary Proceedings Remittance Arrears Interest

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Parties

Issac T M

Appellant

The Idukki District Co-operative Bank Ltd

First Respondent

Kerala State Co-operative Employee Pension Board

Second Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court

Legal Issues

  1. 1 Whether the appellant was entitled to pension from the date succeeding his month of retirement (1 February 2007) under the State Co-operative Bank and District Co-operative Bank Employees Self Financing Pension Scheme 2005
  2. 2 Whether para 5(2) of the Pension Scheme permits a bank to withhold pension arrears where remittance of employer's contribution is delayed due to disciplinary proceedings
  3. 3 Whether the respondent bank's failure to forward pension papers justified denial of arrears and interest

Ratio Decidendi

The Supreme Court held that the appellant was entitled to pension with effect from 1 February 2007 under paragraph 19 of the Pension Scheme; the bank's failure to forward pension papers and delay in remittance due to disciplinary proceedings could not defeat the appellant's entitlement, and para 5(2) could not be applied to deny arrears where the delay was attributable to the bank; accordingly the High Court judgment was set aside and orders were made for payment of arrears and computation/remittance of any interest.

Court Disposition

Appeal allowed; impugned judgment of the High Court set aside.

Orders

  • The second respondent shall within a period of four weeks pay over to the appellant the arrears of pension between 1 February 2007 and 1 November 2013.
  • If any interest is required to be paid on account of the delayed receipt of the contribution by the Bank, this shall be computed within four weeks from the date of receipt of a certified copy of this order and intimated to the first respondent.