beneficial legislation warrants liberal interpretation by the state as a model employer

7/23/2019 Beneficial Legislation Warrants Liberal Interpretation by the State as a Model Employer

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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 10251 OF 2014

ASGER IBRAHIM AMIN .. APPELLANT

VERSUS

LIFE INSURANCE CORPORATION OF INDIA .. RESPONDENT

J U D G M E N T

VIKRAMAJIT SEN, J.

1 The question which f!!s fo" consi#e"tion is whethe" the A$$e!!nt is

entit!e# to c!i% $ension e&en thou'h he "esi'ne# f"o% se"&ice of his own

&o!ition n#( if so( whethe" his c!i% on this count h# )eco%e )""e# )*

!i%ittion o" !ches+

2 The A$$e!!nt ,oine# the se"&ices of the Res$on#ent Co"$o"tion on

-.+/+01/2 on the $ost of Assistnt A#%inist"ti&e Office" 3Ch"te"e#

Accountnt4 t the 'e of twent* se&en+ He wo"5e# fo" 6- *e"s n# 2 %onths

in the Co"$o"tion )efo"e ten#e"in' his "esi'ntion on 67+0+0110( owin' to

8f%i!* ci"cu%stnces n# in#iffe"ent he!th9( $"esu%)!* h&in' c"osse# fift*

*e"s in 'e+ The "equest of the A$$e!!nt fo" wi&e" of the sti$u!te# th"ee

%onths notice ws f&ou")!* consi#e"e# )* the Co"$o"tion &i#e !ette" #te#


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67+6+0110( n# the A$$e!!nt ws !!owe# to "esi'n f"o% the $ost of De$ut*

:ene"! Mn'e" 3Accounts4( which he ws ho!#in' t tht ti%e+ ;e sh!!

'in $"esu%e tht the "esons tht he h# sc"i)e# fo" his "eti"e%ent( &i


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Res$on#ent "eite"te# its stn# tht the A$$e!!nt( h&in' "esi'ne# f"o% se"&ice(

ws not e!i'i)!e to c!i% $ension un#e" the Pension Ru!es+ E&entu!!*( the

A$$e!!nt fi!e# S$eci! Ci&i! A$$!iction on 61+-+6.06 )efo"e the Hi'h Cou"t(

which ws #is%isse# )* the Sin'!e Ju#'e &i#e Ju#'%ent #te# ?+0.+6.06+ The

LPA of the A$$e!!nt !so 'ot #is%isse# on the '"oun#s of the #e!* of !%ost

0> *e"s( s !so on %e"its &i#e Ju#'%ent #te# 0+-+6.0-( 'inst which the

A$$e!!nt hs $$"oche# this Cou"t+

4 As "e'"#s the issue of #e!* in %tte"s $e"tinin' to c!i%s of $ension( it

hs !"e#* )een o$ine# )* this Cou"t in Union of In#i &+ T"se% Sin'h( 36..74

7 SCC />7 tht in cses of continuin' o" successi&e w"on's( #e!* n# !ches o"

!i%ittion wi!! not thw"t the c!i% so !on' s the c!i%( if !!owe#( #oes not

h&e n* #&e"se "e$e"cussions on the sett!e# thi"#$"t* "i'hts+ This Cou"t

he!#B

7.To su%%"ise( no"%!!*( )e!te# se"&ice "e!te# c!i% wi!!

)e "e,ecte# on the '"oun# of #e!* n# !ches 3whe"e "e%e#* is

sou'ht )* fi!in' w"it $etition4 o" !i%ittion 3whe"e "e%e#* is

sou'ht )* n $$!iction to the A#%inist"ti&e T"i)un!4+ One of

the e=ce$tions to the si# "u!e is cses "e!tin' to continuin'

w"on'+ ;he"e se"&ice "e!te# c!i% is )se# on continuin'

w"on'( "e!ief cn )e '"nte# e&en if the"e is !on' #e!* in see5in'"e%e#*( with "efe"ence to the #te on which the continuin' w"on'

co%%ence#( if such continuin' w"on' c"etes continuin' sou"ce

of in,u"*+ ut the"e is n e=ce$tion to the e=ce$tion+ If the

'"ie&nce is in "es$ect of n* o"#e" o" #%inist"ti&e #ecision

which "e!te# to o" ffecte# se&e"! othe"s !so( n# if the

"eo$enin' of the issue wou!# ffect the sett!e# "i'hts of thi"#

$"ties( then the c!i% wi!! not )e ente"tine#+ For example, if the

issue relates to payment or refixation of pay or pension, relief may

be granted in spite of delay as it does not affect the rights of thirdparties.ut if the c!i% in&o!&e# issues "e!tin' to senio"it* o"


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$"o%otion( etc+( ffectin' othe"s( #e!* wou!# "en#e" the c!i%

st!e n# #oct"ine of !ches!i%ittion wi!! )e $$!ie#+ Insof" s

the consequenti! "e!ief of "eco&e"* of ""e"s fo" $st $e"io# is

conce"ne#( the $"inci$!es "e!tin' to "ecu""in'successi&e w"on's

wi!! $$!*+ As consequence( the Hi'h Cou"ts wi!! "est"ict theconsequenti! "e!ief "e!tin' to ""e"s no"%!!* to $e"io# of th"ee

*e"s $"io" to the #te of fi!in' of the w"it $etition+

3e%$hsis is ou"s4

;e "es$ectfu!!* concu" with these o)se"&tions which if e=t"$o!te# o" $$!ie#

to the fctu! %t"i= of the $"esent cse wou!# h&e the effect of "est"ictin' the

c!i% fo" $ension( if othe"wise sustin)!e in !w( to th"ee *e"s $"e&ious to

when it ws "ise# in ,u#ici! fo"u%+ Such c!i%s "ecu" %onth to %onth n#

wou!# not stn# e=tin'uishe# on the $$!iction of the !ws of $"esc"i$tion(

%e"e!* )ecuse the !e'! "e%e#* $e"tinin' to the ti%e )""e# $"t of it hs

)eco%e un&i!)!e+ This is too we!! ent"enche# in ou" ,u"is$"u#ence(

fo"ec!osin' n* f"esh consi#e"tion+

5 The secon# issue which conf"onts us is whethe" the te"%intion of se"&ice

of the A$$e!!nt "e%ins un!te")!* in the ntu"e of "esi'ntion( with the

consequence of #isentit!in' hi% f"o% &i!in' of o" %i'"tin'%uttin' the

$ension sche%e o" whethe" it inste# )e &iewe# s &o!unt"* "eti"e%ent o"

whethe" it "equi"es to )e "e'"#e# so in o"#e" to )estow this )enefit on the

A$$e!!nt@ who h# "esi'ne# fte" "echin' the 'e of fift* n# fte" se"&in'

the LIC fo" o&e" twent* th"ee *e"s+ The A$$e!!nt "esi'ne# f"o% se"&ice un#e"

Re'u!tion 07 of LIC of In#i 3Stff4 Re'u!tions( 01/.( which !on' with the

othe" $"o&isions of "e!e&nce is "e$"o#uce# fo" fci!it* of "efe"ence


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SECTION 3 TERMINATION

Determination of ServiceB

07+ 304 An e%$!o*ee( othe" thn n e%$!o*ee on $"o)tion o" n

e%$!o*ee $$ointe# on te%$o""* )sis( sh!! not !e&e o"

#iscontinue his se"&ice in the Co"$o"tion without fi"st 'i&in'notice in w"itin' to the co%$etent utho"it* of his intention to

!e&e o" #iscontinue the se"&ice+ The $e"io# of notice "equi"e# sh!!

)e

34 th"ee %onths in the cse of n e%$!o*ee )e!on'in' to

C!ss I@

3)4 one %onth in the cse of othe" e%$!o*ees+

P"o&i#e# tht such notice %* )e wi&e# in $"t o" in fu!! )* the

co%$etent utho"it* t its #isc"etion+ In cse of )"ech )* ne%$!o*ee of the $"o&isions of the su)"e'u!tion( he sh!! )e !i)!e

to $* the Co"$o"tion s co%$enstion su% equ! to his s!"*

fo" the $e"io# of notice "equi"e# of hi%( which su% %* )e

#e#ucte# f"o% n* %one*s #ue to hi%+

S!"#$%%$&'(% $%) R"&'#"*"%&B

01304 ==

364An e%$!o*ee )e!on'in' to C!ss I o" C!ss II $$ointe# to these"&ice of the Co"$o"tion on o" fte" 0st Se$te%)e"(01?/( sh!! "eti"e on

co%$!etion of /. *e"s of 'e( )ut the co%$etent utho"it* %*( if it isof the o$inion tht it is in the inte"est of the Co"$o"tion to #o so( direct

such employee to retire on completion of 50 years of 'e o" t n* ti%e

the"efte" on 'i&in' hi% th"ee %onths notice o" s!"* in !ieu the"eof+

The fo!!owin' Re'u!tions( on which !e"ne# Senio" Counse! fo" the LIC hs

$!ce# "e!ince( c%e to )e int"o#uce# on 0/+6+011/( tht is fte" the A$$e!!nt

h# "esi'ne# f"o% se"&ice+ ;e h&e c!!e# fo" n# $e"use# this Notifiction(

n# s we e=$ecte#( these $"o&isions $$!* "et"os$ecti&e!* with effect f"o%

0+00+011-+ These Re'u!tions o"#in( inter alia( tht n e%$!o*ee %* )e

$e"%itte# to "eti"e 34 on co%$!etion of the 'e of ?? n# 3)4 fte" co%$!etin'

6? *e"s in se"&ice+ In othe" wo"#s( the Co"$o"tion hs the $owe" to


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co%$u!so"* "eti"e n e%$!o*ee who hs ttine# the 'e of ?. *e"s if in its

o$inion such #ecision is in the inte"ests of the Co"$o"tion@ n# the e%$!o*ee

%* see5 $e"%ission to "eti"e u$on co%$!etion of ?? *e"s of 'e n# fte"

"en#e"in' 6? *e"s of se"&ice+ This &e"* $osition fin#s "eite"tion in Ru!e -0 of

the Pension Ru!es un#e" the e$ithet &o!unt"* "eti"e%ent( which $n#ect

$$e"s to h&e )een &i!)!e f"o% the ince$tion i+e+ 0+00+011-+

36A4 34 Notwithstn#in' wht is stte# in su)"u!es 304 n# 364

)o&e( n e%$!o*ee %* )e $e"%itte# to "eti"e t n* ti%e onco%$!etion of the 'e ?? fte" 'i&in' th"ee %onths notice in

w"itin' to the $$ointin' utho"it* of his intention to "eti"e+

3)4 3i4 Notwithstn#in' the $"o&isions of C!use 34( n

e%$!o*ee 'o&e"ne# )* the Life Insu"nce Co"$o"tion of

In#i 3E%$!o*ees4 Pension Ru!es 011? %* )e $e"%itte# to

"eti"e t n* ti%e fte" he hs co%$!ete# twent* *e"s of

qu!if*in' se"&ice( )* 'i&in' notice of not !ess thn ninet*

#*s in w"itin' to the $$ointin' utho"it*+

P"o&i#e# tht this su)c!use sh!! not $$!* to n

e%$!o*ee who is on #e$uttion un!ess fte" h&in' )een

t"nsfe""e# o" h&in' "etu"ne# to In#i( he hs "esu%e# ch"'e

on the $ost in In#i n# hs se"&e# fo" $e"io# of not !ess

thn one *e"+

P"o&i#e# fu"the" tht this su)c!use sh!! not $$!* to

n e%$!o*ee who see5s "eti"e%ent f"o% se"&ice fo" )ein'

)so")e# $e"%nent!* in n utono%ous )o#* o" $u)!icsecto" un#e"t5in' to which he is on #e$uttion t the ti%e of

see5in' &o!unt"* "eti"e%ent+

3ii4 The notice of &o!unt"* "eti"e%ent 'i&en un#e" su)c!use

3i4 of c!use 3)4 sh!! "equi"e cce$tnce )* the $$ointin'

utho"it*+

P"o&i#e# tht whe"e the $$ointin' utho"it* #oes not

"efuse to '"nt the $e"%ission fo" "eti"e%ent )efo"e the e=$i"*of the $e"io# s$ecifie# in the si# notice( the "eti"e%ent sh!!


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)eco%e effecti&e f"o% the #te of e=$i"* of the si# $e"io#+9

+ As we h&e !"e#* "ecounte#( the A$$e!!nt "ecei&e# wi&e" of the

"equi"e%ent of 'i&in' th"ee %onths $"io" notice of his "eso!&e to 8#iscontinue

his se"&ice in the Co"$o"tion9( )estowin' !e'iti%c* to the "esons tht

co%$e!!e# hi% to #o so+ It !so )"in's to the fo"e tht the 01/. Stff

Re'u!tions #i# not $"o&i#e fo" &o!unt"* "eti"e%ent o" VRS s hs )eco%e

co%%on$!ce to#*+ This Cou"t hs c!"ifie# n# hi'h!i'hte# tht "esi'ntion

n# "eti"e%ent h&e #is$"te connottions@ tht n e%$!o*ee cn "esi'n t

n* ti%e )ut( in cont"#istinction( cn "eti"e on!* on co%$!etion of the

$"esc"i)e# $e"io# of qu!if*in' se"&ice n# in consonnce with e=tnt Ru!es n#

Re'u!tions+

7 ;e sh!! now consi#e" the Pension Ru!es of 011?+ Ru!e - of Ch$te" II

the"eof( $"o&i#es tht the Ru!es "e $$!ic)!e to e%$!o*ees 304 who we"e in the

se"&ice of the Co"$o"tion on o" fte" 0+0+017/ n# h# "eti"e# )efo"e 0+00+ 011-

i+e+ the notifie# #te( o" 364 who "eti"e# fte" 0+00+011-@ o" 3-4who we"e in the

se"&ice )efo"e the notifie# #te n# continue# to )e in se"&ice on o" fte" the

notifie# #te@ o" 3>4 who we"e in the se"&ice on o" fte" 0+0+017/ )ut h# "eti"e#

on o" fte" 0+00+011- n# )efo"e the notifie# #te+ ;ht is #isce"ni)!e f"o%

these #tes is tht the Pension Ru!es of 011? h&e inc!u#e# two c!sses of

)enefici"ies into one ho%o'enous c!ss( to wit( the e%$!o*ees who h# "eti"e#

)efo"e the notifie# #te n# those who we"e to "eti"e fte" the notifie# #te+ In

ou" o$inion( the #&nt'e of these )eneficent Ru!es shou!# )e e=ten#e# e&en to


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the A$$e!!nt who ws si%i!"!* $!ce# s the "eti"ees %entione# in Ru!e - )ut

fo" the fct tht he h# "esi'ne# "the" thn "eti"e#+ The two $"o&isions

cu'ht in the c"ossfi"e "e Ru!e 63s4( which #efines 8"eti"e%ent9 n# Ru!e 6-(

which #e!s with the 8fo"feitu"e of se"&ice9B

2(s) retirement%ens( 3i4 "eti"e%ent in cco"#nce with the

$"o&isions contine# in su)"e'u!tion 304 o" su)"e'u!tion 364 o"

su)"e'u!tion 3-4 of "e'u!tion 01 of the Life Insu"nce

Co"$o"tion of In#i 3Stff4 Re'u!tions( 01/. n# "u!e 0> of the

Life Insu"nce Co"$o"tion of In#i C!ss III n# C!ss IV

E%$!o*ees 3Re&ision of Te"%s n# Con#itions of Se"&ice4 Ru!es(017? %#e un#e" the Act@

3ii4 &o!unt"* "eti"e%ent in cco"#nce with the !#('-'(%-

contine# in "u!e -0 of these "u!es+ 3e%$hsis ##e#4

23.Forfeiture of service Resi'ntion o" #is%iss! o" "e%o&! o"

te"%intion o" co%$u!so"* "eti"e%ent of n e%$!o*ee f"o% the

se"&ice of the Co"$o"tion sh!! enti! fo"feitu"e of his enti"e $st

se"&ice n# consequent!* sh!! not qu!if* fo" $ension"* )enefits+

Vo!unt"* "eti"e%ent( note# in the su)Ru!e 3ii4 of Ru!e 63s4( hs )een #efine# in

Ru!e -0( n# it "e#s s fo!!owsB

31.ension on vo!"ntar# retirement 304 At n* ti%e fte" n

e%$!o*ee hs co%$!ete# twent* *e"s of qu!if*in' se"&ice he

%*( )* 'i&in' notice of not !ess thn ninet* #*s( in w"itin'( to the

$$ointin' utho"it*( "eti"e f"o% se"&iceB

P"o&i#e# tht this su)"u!e sh!! not $$!* to n e%$!o*ee whois on #e$uttion un!ess fte" h&in' )een t"nsfe""e# o" h&in'

"etu"ne# to In#i he hs "esu%e# ch"'e of the $ost in In#i n#

hs se"&e# fo" $e"io# of not !ess thn one *e"B

P"o&i#e# fu"the" tht this su)"u!e sh!! not $$!* to n

e%$!o*ee who see5s "eti"e%ent f"o% se"&ice fo" )ein' )so")e#

$e"%nent!* in n utono%ous )o#* o" $u)!ic secto" un#e"t5in'

to which he is on #e$uttion t the ti%e of see5in' &o!unt"*

"eti"e%ent+


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364 The notice of &o!unt"* "eti"e%ent 'i&en un#e" su)"u!e

304 sh!! "equi"e cce$tnce )* the $$ointin' utho"it*B

P"o&i#e# tht whe"e the $$ointin' utho"it* #oes not "efuse

to '"nt the $e"%ission fo" "eti"e%ent )efo"e the e=$i"* of the$e"io# s$ecifie# in the si# notice( the "eti"e%ent sh!! )eco%e

effecti&e f"o% the #te of e=$i"* of the si# $e"io#+

3-4 34 An e%$!o*ee "efe""e# to in su)"u!e 304 %* %5e

"equest in w"itin' to the $$ointin' utho"it* to cce$t notice of

&o!unt"* "eti"e%ent of !ess thn ninet* #*s 'i&in' "esons

the"efo"@

3)4 on "ecei$t of "equest un#e" c!use34( the $$ointin'

utho"it* %*( su),ect to the $"o&isions of su)"u!e 364( consi#e"such "equest fo" the cu"ti!%ent of the $e"io# of notice of ninet*

#*s on %e"its n# if it is stisfie# tht the cu"ti!%ent of the

$e"io# of notice wi!! not cuse n* #%inist"ti&e incon&enience(

the $$ointin' utho"it* %* "e!= the "equi"e%ent of notice of

ninet* #*s on the con#ition tht the e%$!o*ee sh!! not $$!* fo"

co%%uttion of $"t of his $ension )efo"e the e=$i"* of the

notice of ninet* #*s+

3>4 An e%$!o*ee( who hs e!ecte# to "eti"e un#e" this "u!e n#

hs 'i&en necess"* notice to tht effect to the $$ointin' utho"it*(

sh!! )e $"ec!u#e# f"o% with#"win' his notice e=ce$t with the

s$ecific $$"o&! of such utho"it*B

P"o&i#e# tht the "equest fo" such with#"w! sh!! )e %#e

)efo"e the inten#e# #te of his "eti"e%ent+

3?4 The qu!if*in' se"&ice of n e%$!o*ee "eti"in' &o!unt"i!*

un#e" this "u!e sh!! )e inc"ese# )* $e"io# not e=cee#in' fi&e

*e"s( su),ect to the con#ition tht the tot! qu!if*in' se"&ice

"en#e"e# )* such e%$!o*ee sh!! not in n* cse e=cee# thi"t*th"ee *e"s n# it #oes not t5e hi% )e*on# the #te of "eti"e%ent+

3/4 The $ension of n e%$!o*ee "eti"in' un#e" this "u!e sh!!

)e )se# on the &e"'e e%o!u%ents s #efine# un#e" c!use3#4 of

"u!e 6 of these "u!es n# the inc"ese( not e=cee#in' fi&e *e"s in

his qu!if*in' se"&ice( sh!! not entit!e hi% to n* notion! fi=tion

of $* fo" the $u"$ose of c!cu!tin' his $ension+


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It see%s o)&ious to us tht the A$$e!!nts cse #oes not f!! within the

$ostu!tion of Ru!e 6- s the !st fou" cte'o"ies o" 'en"es o" t*$es of cesstion

of se"&ices "e in ch"cte" $uniti&e@ n# the fi"st en&is'es those "esi'ntions

whe"e the "i'ht to $ension hs not )een e"ne# )* tht ti%e o" whe"e it is

without the $e"%ission of the Co"$o"tion+

The Res$on#ent Co"$o"tion hs &ehe%ent!* "'ue# tht the te"%intion

of se"&ices is un#e" Re'u!tion 07 3su$"4 of the LIC 3Stff4 Re'u!tions( 01/.

n# is not co&e"e# )* the Pension Ru!es of 011?+ Res$on#ent Co"$o"tion hs

cont"o&e"te# the $!e of the A$$e!!nt tht t the "e!e&nt #te n# ti%e( &i


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/ ;e !so "eco"# tht the $"o&isions co&e"e# )* the #efinition of

8"eti"e%ent9( which #o not enti! fo"feitu"e of se"&ice( "e su)"e'u!tion 304(

su)"e'u!tion 364( n# su)"e'u!tion 3-4 of Re'u!tion 01 of the Life Insu"nce

Co"$o"tion of In#i 3Stff4 Re'u!tions( 01/. n# Ru!e 0> of the Life

Insu"nce Co"$o"tion of In#i C!ss III n# C!ss IV E%$!o*ees 3Re&ision of

Te"%s n# Con#itions of Se"&ice4 Ru!es( 017?+ None of these $"o&isions

$"o&i#es fo" &o!unt"* "eti"e%ent !i5e Ru!e -0 of the Pension Ru!es no" #oes the

#efinition of 8"eti"e%ent9 %5e n* %ention of fo"e%entione# Re'u!tion

0136A4+

10 The fcts of the cse #isc!ose tht the A$$e!!nt hs wo"5e# fo" o&e"

twent* *e"s n# h# ten#e"e# his "esi'ntion in cco"#nce with the $"o&ision

of Re'u!tion 07 of LIC of In#i 3Stff4 Re'u!tions( 01/.( which( s is

$$"ent f"o% its "e#in'( #oes not #issi%u!te )etween the te"%intion of

se"&ice )* w* of "esi'ntion on the one hn# n# &o!unt"* "eti"e%ent on the

othe"( o" #istin'uish one f"o% the othe"+ Si'nificnt!*( the"e ws no $"o&ision

fo" &o!unt"* "eti"e%ent t the "e!e&nt ti%e( n# it ws fo" this "eson tht the

Pension Ru!es of 011? s$ecific!!* $"o&i#e# fo" it un#e" Ru!e -0+ In this

)c5#"o$ of fcts( we nee# not #we!! %uch on the issue )ecuse the cse of

S""*$# J$'% &+ New In#i Assu"nce Co+ Lt#+( 36.004 06 SCC 012is on !!

fou"s of this cse+

11 In S""*$#( the A$$e!!nt "esi'ne# f"o% the se"&ices of the

Res$on#ent Co%$n* fte" se"&in' fo" o&e" 6. *e"s on 0/+06+0110+ His


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"esi'ntion ws offe"e# n# '"nte# un#e" C!use ? of :ene"! Insu"nce

3Te"%intion( Su$e"nnution n# Reti"e%ent of Office"s n# De&e!o$%ent

Stff4 Sche%e( 012/+ The"efte"( the Cent"! :o&e"n%ent fo"%u!te# :ene"!

Insu"nce 3E%$!o*eesG4 Pension Sche%e( 011? with "et"os$ecti&e effect f"o%

0+00+011-+ Shee!5u%" $$!ie# fo" $ension un#e" this Sche%e( which ws

#ec!ine# on the '"oun# tht "esi'ntion f"o% se"&ice wou!# enti! fo"feitu"e of

se"&ice un#e" C!use 66 of the :ene"! Insu"nce 3E%$!o*eesG4

Pension Sche%e( 011?+ The A$$e!!nt %o&e# the Hi'h Cou"t ch!!en'in' the

"e,ection of his c!i%+ His w"it $etition s we!! s the w"it $$e! ws #is%isse#

)* the Hi'h Cou"t+ The A$$e!!nt then %o&e# this Cou"t( whe"e)* we note#

tht C!use ? of the Sche%e of 012/ #i# not %ention "esi'ntion no" ws the

A$$e!!nt %#e w"e of the #istinction )etween "esi'ntion n# &o!unt"*

"eti"e%ent@ tht this #istinction ws $"o#uct of the :ene"! Insu"nce

3E%$!o*ees4 Pension Sche%e of 011?+ This Cou"t o)se"&e#B

20.Su)$" 304 of P" ? #oes not stte tht the te"%intion

of se"&ice $u"sunt to the notice 'i&en )* n office" o" $e"son of

the De&e!o$%ent Stff to !e&e o" #iscontinue his se"&ice %ounts

to 8"esi'ntion9 no" #oes it stte tht such te"%intion of se"&ice of

n office" o" $e"son of the De&e!o$%ent Stff on his se"&in'notice in w"itin' to !e&e o" #iscontinue in se"&ice %ounts to

8&o!unt"* "eti"e%ent9+ Su)$" 304 of P" ? #oes not !so %5e

#istinction )etween 8"esi'ntion9 n# 8&o!unt"* "eti"e%ent9 n#

it on!* $"o&i#es tht n e%$!o*ee who wnts to !e&e o"

#iscontinue his se"&ice hs to se"&e notice of th"ee %onths to the

$$ointin' utho"it*+

21.;e !so notice tht su)$" 304 of P" ? #oes not "equi"e

tht the $$ointin' utho"it* %ust cce$t the "equest of n office"o" $e"son of the De&e!o$%ent Stff to !e&e o" #iscontinue his


13/18Page 13

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se"&ice )ut in the fcts of the $"esent cse( the "equest of the

$$e!!nt to "e!ie&e hi% f"o% his se"&ice fte" th"ee %onths notice

ws cce$te# )* the co%$etent utho"it* n# such cce$tnce ws

con&e*e# )* the !ette" #te# 670.0110 of the Assistnt

A#%inist"ti&e Office"( In#o"e+=====

23.The 011? Pension Sche%e ws f"%e# n# notifie# on!*

in 011? n# *et the 011? Pension Sche%e ws %#e $$!ic)!e

!so to e%$!o*ees who h# !eft the se"&ices of Res$on#ent 0

Co%$n* )efo"e 011?+ P"s 66 n# -. of the 011? Pension

Sche%e quote# )o&e we"e not in e=istence when the $$e!!nt

su)%itte# his !ette" #te# 0/10110 to the :ene"! Mn'e" of

Res$on#ent 0 Co%$n*+ Hence( when the $$e!!nt se"&e# his!ette" #te# 0/10110 to the :ene"! Mn'e" of Res$on#ent 0

Co%$n*( he h# no 5now!e#'e of the #iffe"ence )etween

8"esi'ntion9 un#e" P" 66 n# 8&o!unt"* "eti"e%ent9 un#e" P"

-. of the 011? Pension Sche%e+ Si%i!"!*( Res$on#ent 0 Co%$n*

e%$!o*e" h# no 5now!e#'e of the #iffe"ence )etween

8"esi'ntion9 n# 8&o!unt"* "eti"e%ent9 un#e" P"s 66 n# -. of

the 011? Pension Sche%e( "es$ecti&e!*+

24. oth the $$e!!nt n# Res$on#ent 0 h&e cte# in

cco"#nce with the $"o&isions of su)$" 304 of P" ? of the

012/ Sche%e t the ti%e of te"%intion of se"&ice of the $$e!!nt

in the *e" 0110+ It is in this )c5'"oun# tht we h&e now to

#eci#e whethe" the te"%intion of se"&ice of the $$e!!nt un#e"

su)$" 304 of P" ? of the 012/ Sche%e %ounts to "esi'ntion

in te"%s of P" 66 of the 011? Pension Sche%e o" %ounts to

&o!unt"* "eti"e%ent in te"%s of P" -. of the 011? Pension

Sche%e+

25. P" 66 of the 011? Pension Sche%e sttes tht the"esi'ntion of n e%$!o*ee f"o% the se"&ice of the co"$o"tion o"

co%$n* sh!! enti! fo"feitu"e of his enti"e $st se"&ice n#

consequent!* he sh!! not qu!if* fo" $ension"* )enefits( )ut #oes

not #efine the te"% 8"esi'ntion9+ Un#e" su)$" 304 of P" -. of

the 011? Pension Sche%e( n e%$!o*ee( who hs co%$!ete# 6.

*e"s of qu!if*in' se"&ice( %* )* 'i&in' notice of not !ess thn

1. #*s in w"itin' to the $$ointin' utho"it* "eti"e f"o% se"&ice

n# un#e" su)$" 364 of P" -. of the 011? Pension Sche%e( the

notice of &o!unt"* "eti"e%ent sh!! "equi"e cce$tnce )* the$$ointin' utho"it*+ Since 8&o!unt"* "eti"e%ent9 un!i5e


14/18Page 14

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8"esi'ntion9 #oes not enti! fo"feitu"e of $st se"&ices n# inste#

qu!ifies fo" $ension( n e%$!o*ee to who% P" -. of the 011?

Pension Sche%e $$!ies cnnot )e si# to h&e 8"esi'ne#9 f"o%

se"&ice+

2+.In the fcts of the $"esent cse( we fin# tht the $$e!!nt

h# co%$!ete# 6. *e"s of qu!if*in' se"&ice n# h# 'i&en notice

of not !ess thn 1. #*s in w"itin' to the $$ointin' utho"it* of his

intention to !e&e the se"&ice n# the $$ointin' utho"it* h#

cce$te# notice of the $$e!!nt n# "e!ie&e# hi% f"o% se"&ice+

Hence( P" -. of the 011? Pension Sche%e $$!ie# to the

$$e!!nt e&en thou'h in his !ette" #te# 0/10110 to the :ene"!

Mn'e" of Res$on#ent 0 Co%$n* he h# use# the wo"#

8"esi'n9+

12 ;ht is un%ist5)!* e&i#ent in the cse t hn# is tht the A$$e!!nt

h# wo"5e# continuous!* fo" o&e" 6. *e"s( tht he sou'ht to #iscontinue his

se"&ices n# "equeste# wi&e" of th"ee %onths notice in w"itin'( n# tht the

si# notice ws cce$te# )* the Res$on#ent Co"$o"tion n# the A$$e!!nt ws

the"e)* !!owe# to #iscontinue his se"&ices+ If one wou!# e=%ine Ru!e -0 of

the Pension Ru!es ,u=t$ose# with the fo"e%entione# fcts( it wou!# t once )e

o)&ious n# $e"ce$ti)!e tht the essenti! co%$onents of tht Ru!e stn#

su)stnti!!* fu!fi!!e# in the $"esent cse+ In S""*$#( this Cou"t ws !i&e

to the fctu% tht ech cse c!!s fo" sc"utin* on its own %e"its( )ut tht such

sc"utin* shou!# not )e #etche# f"o% the $u"$ose n# o),ecti&e of the

conce"ne# sttute+ It thus o)se"&e#B

30.The fo"esi# utho"ities wou!# show tht the cou"t wi!!

h&e to const"ue the sttuto"* $"o&isions in ech cse to fin# out

whethe" the te"%intion of se"&ice of n e%$!o*ee ws

te"%intion )* w* of "esi'ntion o" te"%intion )* w* of&o!unt"* "eti"e%ent n# whi!e const"uin' the sttuto"* $"o&isions(


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the cou"t wi!! h&e to 5ee$ in %in# the $u"$oses of the sttuto"*

$"o&isions+

31.The 'ene"! $u"$ose of the 011? Pension Sche%e( "e# s

who!e( is to '"nt $ension"* )enefits to e%$!o*ees( who h#"en#e"e# se"&ice in the insu"nce co%$nies n# h# "eti"e# fte"

$uttin' in the qu!if*in' se"&ice in the insu"nce co%$nies+ P"s

66 n# -. of the 011? Pension Sche%e cnnot )e so const"ue# so

s to #e$"i&e of n e%$!o*ee of n insu"nce co%$n*( such s the

$$e!!nt( who h# $ut in the qu!if*in' se"&ice fo" $ension n#

who h# &o!unt"i!* 'i&en u$ his se"&ice fte" se"&in' 1. #*s

notice in cco"#nce with su)$" 304 of P" ? of the 012/

Sche%e n# fte" his notice ws cce$te# )* the $$ointin'

utho"it*+

13 The A$$e!!nt ou'ht not to )e #e$"i&e# of $ension )enefits %e"e!*

)ecuse he st*!e# his te"%intion of se"&ices s 8"esi'ntion9 o" )ecuse the"e

ws no $"o&ision to "eti"e &o!unt"i!* t tht ti%e+ The co%%en#)!e o),ecti&e

of the Pension Ru!e is to e=ten# )enefits to c!ss of $eo$!e to ti#e o&e" the

c"isis n# &icissitu#es of o!# 'e( n# if the"e "e so%e inconsistencies )etween

the sttuto"* $"o&isions n# the &owe# o),ecti&e of the sttute so s to

#isc"i%inte )etween the )enefici"ies within the c!ss( the en# of ,ustice

o)!i'tes us to $!!ite the #iffe"ences )etween the two n# "econci!e the% s f"

s $ossi)!e+ ;e wou!# )e fi!in' in ou" #ut*( if we 'o )* the !ette" n# not )*

the !u#to"* s$i"it of sttuto"* $"o&isions n# the fun#%ent! "i'hts

'u"ntee# un#e" A"tic!e 0> of the Constitution of In#i+

14 Rese"&e n5 of In#i &+ Ceci! Dennis So!o%on( 36..>4 1 SCC >/0 "e!ie#

u$on )* the Res$on#ent( !thou'h #istin'uish)!e on fcts( hs &entu"e# to

#istin'uish 8&o!unt"* "eti"e%ent9 f"o% 8"esi'ntion9 in the fo!!owin' te"%sB


16/18Page 16

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10. In se"&ice ,u"is$"u#ence( the e=$"essions

8su$e"nnution9( 8&o!unt"* "eti"e%ent9( 8co%$u!so"*

"eti"e%ent9 n# 8"esi'ntion9 con&e* #iffe"ent connottions+

Voluntary retirement and resignation involve voluntary acts on the

part of the employee to leave service. Though both involvevoluntary acts, they operate differently. ne of the basic

distinctions is that in case of resignation it can be tendered at any

time, but in the case of voluntary retirement, it can only be sought

for after rendering prescribed period of !ualifying service. ther

fundamental distinction is that in case of the former, normally

retiral benefits are denied but in case of the latter, the same is not

denied. "n case of the former, permission or notice is not

mandated, #hile in case of the latter, permission of the employer

concerned is a re!uisite condition. Thou'h "esi'ntion is )i!te"! conce$t( n# )eco%es effecti&e on cce$tnce )* the

co%$etent utho"it*( *et the 'ene"! "u!e cn )e #is$!ce# )*

e=$"ess $"o&isions to the cont""*+ In Pun,) Ntion! n5 &+ P++

Mitt! 30171 Su$$ 364 SCC 02?4 on inte"$"ettion of Re'u!tion

6.364 of the Pun,) Ntion! n5 Re'u!tions( it ws he!# tht

"esi'ntion wou!# uto%tic!!* t5e effect f"o% the #te s$ecifie#

in the notice s the"e ws no $"o&ision fo" n* cce$tnce o"

"e,ection of the "esi'ntion )* the e%$!o*e"+ In Union of In#i &+

:o$! Chn#" Mis" 3301274 6 SCC -.04 it ws he!# in the cse

of ,u#'e of the Hi'h Cou"t h&in' "e'"# to A"tic!e 602 of the

Constitution tht he hs uni!te"! "i'ht o" $"i&i!e'e to "esi'n his

office n# his "esi'ntion )eco%es effecti&e f"o% the #te which

he( of his own &o!ition( chooses+ ut whe"e the"e is $"o&ision

e%$owe"in' the e%$!o*e" not to cce$t the "esi'ntion( on ce"tin

ci"cu%stnces e+'+ $en#enc* of #isci$!in"* $"ocee#in's( the

e%$!o*e" cn e=e"cise the $owe"+

3e%$hsis is ou"s4

The !e'! $osition #e#uci)!e f"o% the )o&e o)se"&tions fu"the" %$!ifies tht

the soc!!e# "esi'ntion ten#e"e# )* the A$$e!!nt ws fte" stisfcto"i!*

se"&in' the $e"io# of 6. *e"s o"#in"i!* qu!if*in' o" en)!in' &o!unt"*

"eti"e%ent+ Fu"the"%o"e( whi!e the"e ws no co%$u!sion to #o so( wi&e" of

the th"ee %onths notice $e"io# ws '"nte# )* the Res$on#ent Co"$o"tion+


17/18Page 17

17

The Stte )ein' %o#e! e%$!o*e" shou!# const"ue the $"o&isions of )enefici!

!e'is!tion in w* tht e=ten#s the )enefit to its e%$!o*ees( inste# of

cu"ti!in' it+

15 The cses of Sh*% )u Ve"% &+ Union of In#i( 3011>4 6 SCC ?60@

Stte of M+P+ &+ o'en#" Sh"i&st&( 36.0.4 06 SCC ?-7@ M+R+ P")h5" &+

Cn" n5( 36.064 1 SCC /20@ Ntion! Insu"nce Co+ Lt#+ &+ i"$! Sin'h(

36.0>4 ? SCC 071@ UCO n5 &+ Snw" M!( 36..>4 > SCC >06 "e!ie# u$on )*

the $"ties "e #istin'uish)!e on fcts f"o% the $"esent cse+

1+ ;e thus ho!# tht the te"%intion of se"&ices of the A$$e!!nt( in essence(

ws &o!unt"* "eti"e%ent within the %)it of Ru!e -0 of the Pension Ru!es of

011?+ The A$$e!!nt is entit!e# fo" $ension( $"o&i#e# he fu!fi!s the con#ition of

"efun#in' of the enti"e %ount of the Co"$o"tions cont"i)ution to the

P"o&i#ent Fun# !on' with inte"est cc"ue# the"eon s $"o&i#e# in the Pension

Ru!es of 011?+ Consi#e"in' the hu'e #e!*( not e=$!ine# )* $"o$e" "esons( on

$"t of the A$$e!!nt in $$"ochin' the Cou"t( we !i%it the )enefits of ""e"s

of $ension $*)!e to the A$$e!!nt to th"ee *e"s $"ece#in' the #te of the

$etition fi!e# )efo"e the Hi'h Cou"t+ These ""e"s of $ension shou!# )e $i# to

the A$$e!!nt in one inst!%ent within fou" wee5s f"o% the #te of "efun# of the

enti"e %ount $*)!e )* the A$$e!!nt in cco"#nce of the Pension Ru!es of

011?+ In the !te"nti&e( the A$$e!!nt %* o$t to 'et the %ount of "efun#

#,uste# 'inst the ""e"s of $ension+ In the !tte" cse( if the %ount of

""e" is %o"e thn the %ount of "efun# "equi"e#( then the "e%inin' %ount


18/18

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sh!! )e $i# within two wee5s f"o% the #te of such "equest %#e )* the

A$$e!!nt+ Howe&e"( if the %ount of ""e"s is !ess thn the %ount of "efun#

"equi"e#( then the $ension sh!! )e $*)!e on %onth!* )sis fte" the #te on

which the %ount of "efun# is enti"e!* #,uste#+

17 The i%$u'ne# Ju#'%ents of the Hi'h Cou"t "e set si#e n# the A$$e!

stn#s !!owe# in the te"%s )o&e+ Howe&e"( $"ties sh!! )e" thei" "es$ecti&e

costs+

......................................................J

VIKRAMAJIT SEN

......................................................J

ABHA MANOHAR SAPRE

N"6 D"',

O&(8"# 12, 2015.

beneficial legislation warrants liberal interpretation by the state as a model employer

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