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 a pension. In this case, Allahabad Bank vs A C Aggarwal, the officer retired and was paid gratuity. Then, he asked for a pension. The bank rejected it, saying benefits under the pension scheme were subject to the condition of refunding the amount of gratuity already paid to him and submission of an irrevocable undertaking that he would be getting a 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 the State Bank of India was paying gratuity to its employees in addition to other retiral benefits and, therefore, there was no justification to discriminate against the employees of another public sector bank. The high court accepted the argument and asked the bank to pay the 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 an exemption from the gratuity law, but the government had rejected its request.
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Thank you for the valuable information. I have read your document. It appears that the retired employee did not receive a pension from Allahabad Bank. If he can refund the gratuity amount, then only will he be able to receive a pension from the bank. Is this correct? Please advise.
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Gratuity Form I.doc
EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf