ARIKARAVULA SANYASI RAJUversusTHE BRANCH MANAGER, STATE BANK OF INDIA, VISAKHAPATNAM (A.P.) AND ORS.
- Citation
- 1996 INSC 1326
- Decided
- 18 November 1996
- Disposal
- Disposed off
Holding
Removal from service for misconduct does not constitute incapacitation and does not attract Rule 22(i)(b), while Rule 22(i)(c) applies only to voluntary retirement, so the appellant is not entitled to a pension and Article 14 is not breached.
Summary
The appellant, a former Branch Manager of State Bank of India, was removed from service on a finding of misconduct in 1990 after completing more than twenty years of pensionable service. He filed a writ petition seeking payment of his provident fund and a pension under the SBI Employees' Pension Fund Rules, specifically invoking Rule 22(i)(b) and (c). The High Court allowed the provident fund but denied the pension, holding that removal for misconduct does not constitute incapacitation and that clause (c) applies only to voluntary retirement. On appeal, the Supreme Court affirmed that removal for misconduct cannot be treated as incapacity under clause (b), and clause (c) does not extend to employees dismissed for misconduct; consequently, the appellant was not entitled to a pension. The Court also held that Article 14 of the Constitution was not violated despite another employee having received a pension after dismissal, as that was a mistaken individual decision and not a matter of discrimination. The appeal was dismissed with no costs.
Issues considered
- Whether a bank employee removed from service on misconduct is entitled to pension under Rule 22(i)(b) on the ground of incapacitation.
- Whether Rule 22(i)(c) provides a pension right to an employee who has completed twenty years of service but is removed for misconduct.
- Whether denial of pension violates Article 14 of the Constitution on the ground of unequal treatment.
Legislation cited
- Constitution of Indias. Article 14
Subjects
Judgment
ARIKARA VULA SANYAS! RAJU A
v.
THE BRANCH MANAGER, STATE BANK OF INDIA,
VISAKHAPATNAM (A.P.) AND ORS.
NOVEMBER 18, 1996
B
[K. RAMASWAMY AND G.B. PATTANAIK, JJ.]
Service Lau::
State Bank of India Employees' Pension Fund Rules:
c
Rule 22(/)(b) and (c)-Bank employee-Removal from service on
charge ofmisconduct-Claim for pension-Held, not sustainable-Removal
from service for misconduct cannot be considered to be incapacitation for
rendering the service and clause (b) of Rule 22(1) does not apply: nor
does clause (c) of the Rule apply in such case-Clause (c) would apply in D
a case of voluntary retiren1ent on completion of 20 years ofservice-Order
of removal is also not discriminatory.
Constitution of India, 1950:
Article 14-Bank employee removed from service on charge of E
misconduct-Claim/or pension on the ground that similarly situated person
was earlier allowed pension-Held, Article 14 does not apply in such a
case the order is not discriminatory-Merely because, on a wrong advice,
another employee was given pension after removal from service, the
same cannot be made a ground under Article 14 to pe1petuate the same F
mistake.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 15072 of
1996.
From the Judgment and Order dated 26.4.96 of the Andhra Pradesh G
High Court in W.A. No. 203 of 1996.
A.T.M. Sampath and V. Balaji for the Appellant.
The following order of the Court was delivered : H
727
728 SUPREME COURT REPORTS [ 1996] SUPP. 8 S.C.R.
A Leave granted.
This appeal by special leave arises from the order of the Division
Bench of the Andhra Pradesh High Court, made on April 26, 1996 in Writ
Appeal No. 203/96 confirming the judgment of the learned single Judge.
B The admitted position is that while the appellant was working as an
officer in JMG Scale-I, an enquiry was held and he was removed from
service on the finding of misconduct recorded by order dated May 25,
1990. He filed the writ petition claiming paymer.t of Provident Fund and
Pension. The learned single Judge directed payment of the Provident Fund
in terms of the Rule but denied the relief of pension. That was confirmed
C by the Division Bench.
The appellant placed reliance on Rule 22 of the State Bank of India
Services Rules which reads as under:
D "22(i) A member shall be entitled to a pension under these rules on
retiring from the Bank's service.
(a) After, having completed twenty years pensionable service
provided that he has attained the age of fifty years;
E (b) After having completed twenty years' pensionable service,
irrespective of the age he shall have attained, ifhe shall satisfy
the authority competent to sanction his retirement by approved
medical certificate or otherwise that he is in capacitated for
further active service;
F
( c) After having completed twenty years pensionable service
irrespective of the age he shall have attained at his request in
writing.
(d) After twenty five years' pensionable service.
G
(ii) A member who has attained the age of fifty five or who
shall be proved to the satisfaction of the authority empowered
to sanction his retirement to be permanently incapacitated
by bodily or mental infirmity from further active service
H (such iafirmity not being the result of irregular or intemperate
ARJKARAVULA SANYASI RAJU 1·. BRANCH MANAGER, ST ATE BANK. OF INDIA 729
habits), may at the discretion of the trustees, be granted a A
proportionate pensio.n.
(iii) A member who has been permitted to retire under clauses
(l(c) above shall be entitled to propo11ionate pension."
It was contended that under Clause 22(i) (b ), because of the removal B
from service he was incapacitated for further active service and he is entitled
to the pension. The High Court rightly had not accepted the said contention.
It is seen that on medical grounds or any of the enumerated grounds ifhe
had sought retirement on that basis and allowed to retire from service, he
would be entitled to pension on completion of 20 years of pensionable
service. Removal from service for misconduct cannot be considered to be C
incapacitation for rendering the service and Clause 22(i)(b) does not apply
to pension. It is then seriously contended by Shri Sampath, learned counsel
for the appellant, that since he J:ias completed 20 years of pensionable
service, irrespective of removal, he is entitled to the pension under clause
(c) thereof. In support thereof, he sought to µlace reliance on a clarification D
issued by the Bank in their letter dated February 11, 1985 stating that
removal from service entitled him to pension as is available to the other
retired persons. He also fu11her contended that one Mr. C.C.M. Nambiar,
who was similarly situated and removed frotn service for misconduct, was
given the benefit on the said advice. Therefore, the petitioner is entitled to
the same benefit. We cannot accept the said contention as correct. Clause E
22(i)(c) envisages only that after completing 20 years of pensionable service,
if an incumbent retired at his request in writing and was permitted to
retire, he would be entitled to pension. In other words, for voluntary
retirement, on completion of20 years of pensionable service, clause (c) of
Rule 22(1) gets. attracted. It does not apply to officer who was removed F
frotn service for misconduct. Under these circumstances, the High Court
has not committed any error of law warranting interference. Merely
because, on a wrong advice, another employee was given pension after
removal from service, the same cannot be made a ground under Article 14
to perpetuate the same mistake. So, Article 14 does not apply and no
discrimination arises. G
The appeal is disposed of. No costs.
R.P. Appeal disposed of.
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