Permanent Part-Time Service Qualifies Under Pension Regulations: Gujarat HC Upholds Payment To Retd. Cleaner At Dena Bank
The Gujarat High Court has affirmed that a 'permanent part-time' employee is entitled to grant of pension in terms of Dena Bank (Employees') Pension Regulations, 1995.The Bench comprising Justice AJ Desai and Justice Mauna Bhatt thus upheld the single bench order directing grant of pension to a part-time cleaner, who had voluntarily retired from service. The Respondent-cleaner had joined...
The Gujarat High Court has affirmed that a 'permanent part-time' employee is entitled to grant of pension in terms of Dena Bank (Employees') Pension Regulations, 1995.
The Bench comprising Justice AJ Desai and Justice Mauna Bhatt thus upheld the single bench order directing grant of pension to a part-time cleaner, who had voluntarily retired from service.
The Respondent-cleaner had joined the service in 1990 as Part-Time Cleaner. His service was regularized in 1990 as 1/3rd Part-Time Cleaner on scale wages w.e.f initial date of joining. He was made permanent as Full-Time Cleaner w.e.f. 2003 and continued till he voluntary retired in 2011.
The Court held that the total of qualifying service of the employee from 1990-2011 should be assessed while granting pension as per Clause 1 of Regulation 27 and not 1/3rd of each year as argued by the Bank.
The Bank had referred to Annexure IV of Regulation 27 reproduced below to contest that only 1/3rd of a year of a part-time worker's service should be taken into account.
The Appellant-Bank primarily contested that the workman was made permanent in 2003 and he had voluntarily retired in 2011. Therefore, he had not completed 20 years of qualifying service as per the Pension Regulations. Per the Bank's calculation, the total year of service of the workman would come to 4 years and 9 months from 1990-2003 as a part-time cleaner. Thereafter, he had provided 12 years of service as a permanent employee. Thus, a total of 16 years and 9 months service was rendered. Per contra, the workman insisted that his case fell under the first clause of Appendix IV.
The Court rejected this contention by concluding that 'qualifying service' implied service rendered on duty which should be taken into account for assessing pension. Further, Clause 1 of the Regulation 27 clearly stated that for permanent part-time employees with scale wages, the year of service would be included in 'qualifying service.'
It held:
"The clause 1 specifically deals with permanent employees who were appointed on scale wages and on permanent basis which is the case herein on hand as stated herein above. Therefore, the submissions made on behalf of the appellant cannot be accepted that since the respondent has worked as Part-Time Cleaner between 1990-2003, 1/3rd of each year is to be calculated. The language of Regulation 27(2) is clear which suggests of calculating the amount of pension and not for calculating the qualifying service rendered by Part-Time employee."
Thus, the High Court directed that the total amount of pension be paid within 6 weeks with interest @6% from the date of filing the petition till the amount is paid. The High Court cautioned that if any amount was illegally deducted from the pension, the bank should be liable to pay interest @12%.
Case No.: C/LPA/750/2022
Case Title: Bank OF BARODA v/s HARSHADGIRI CHANCHALGIRI GOSWAMI
Citation: 2022 LiveLaw (Guj) 361