Summary
The Supreme Court held that the employee could not exercise a pension option belatedly in 2019 after failing to use the opportunity available following restoration of his employment relationship and after settling the disciplinary dispute. The Bank nevertheless had to compensate him for withholding settlement retiral dues despite the Court permitting implementation of the joint memo. It was ordered to pay enhanced interest.
Issues
- Whether the employee could belatedly opt for pension after missing the available opportunity and settling the dispute.
- Whether the Bank owed interest for withholding the settlement retiral dues.
Held
- Once the dismissal was set aside in 2005, the employment relationship stood restored. The employee had an opportunity under the later pension-option circular, which he did not exercise; the High Court should not have permitted a fresh option in 2019 after settlement. (¶¶ 7, 8)
- The Court’s interim order permitted implementation of the joint settlement. Withholding the retiral amounts despite that order justified restitution through interest above the ordinary deposit rate. (¶¶ 9, 10)
Result
Special leave petition disposed of: belated pension option disallowed. Bank directed to pay simple interest at 12% annually on withheld settlement dues from 1 July 2019 until release. Interest payable within four weeks, failing which the rate increases to 15% annually.