Summary
The retired cooperative-bank employee’s pension could not be postponed because the bank withheld papers and contribution during disciplinary proceedings that ended in exoneration. His eligibility was undisputed, and the scheme fixed commencement from the month after retirement. Pension arrears from February 2007 were directed; any interest due to delayed remittance of the contribution was to be calculated by the Pension Board and borne by the bank.
Issues
- Whether the bank’s delay in forwarding pension records and remitting contribution could defeat pension from the statutory commencement date.
- Who should bear any interest arising from delayed contribution.
Provisions considered
- Paragraphs 5 and 19, State Co-operative Bank and District Co-operative Bank Employees Self Financing Pension Scheme, 2005Undisputed eligibility and the prescribed commencement from the month after superannuation supported pension from 1 February 2007, rather than postponement because of the bank’s delay. (¶¶ 4, 15–18)
Held
- The employee retired within the eligible category, and paragraph 19 fixed pension from 1 February 2007. The Court noted the High Court decision striking down paragraph 5(2) to the specified extent concerning bank-caused remittance delay. (¶ 15–16)
- The bank had unjustifiably failed to forward the papers, tying action to disciplinary proceedings and the employee’s pending cases. Following exoneration the employee promptly paid the finally intimated contribution. (¶ 17)
- The Board had to compute any interest for delayed contribution and intimate the bank, which had to remit that interest within one week of communication. (¶ 18(ii)–(iii))
Result
Appeal allowed without costs; High Court judgment set aside. Board directed to pay pension arrears for 1 February 2007 to 1 November 2013 within four weeks, with all due arrears paid within two months of certified-copy receipt. Any delayed-contribution interest to be computed within four weeks of receipt and paid by the bank within one week of intimation.