The Supreme Court has dismissed the appeal of Allahabad Bank and ruled that an officer, who opted for voluntary retirement from service and paid gratuity and provident fund, was also entitled to pension. In this case, Allahabad Bank vs A C Aggarwal, the officer retired and was paid gratuity. Then, he asked for pension. The bank rejected it, saying benefits under the pension scheme was subject to the condition of refund of the amount of gratuity already paid to him and submission of an irrevocable undertaking that he will be getting pension in lieu of gratuity. He challenged the bank’s stand in the Allahabad High Court, arguing that it was against the bank rules and constitutional provisions. He further argued that State Bank of India was paying gratuity to its employees in addition to other retiral benefits and, therefore, there was no justification to discriminate the employees of another public sector bank. The high court accepted the argument and asked the bank to pay pension. It moved the Supreme Court. The apex court rejected the appeal and said the law regarding payment of gratuity has overriding power over other rules and regulations. Moreover, the judgment noted the bank had earlier unsuccessfully tried to get exemption from the gratuity law, but the government had rejected its request.
Thanks for valuable information. I have read your document. So Retired Employee did not get pension from Allahabad bank.
If he can refund amount of gratuity then only he will be able to get pension from Bank. is it so ?
Pls tell me.
From India, Delhi
Really very good update given by you. Also wanted to know after 5 years of service in a company and then switching over to a new venture-does the gratuity is payable immediately and how it is paid?
From India, Mumbai
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