Central Bank of India (Employees’) Pension Regulations, 1995 – Central Bank of India (Officers’) Service Regulations, 1979 – Central Bank of India Officer Employees’ (Discipline and Appeal) Regulations, 1976 – Allegation against the appellant that he sanctioned loans without proper appraisal – Inquiry was initiated – Inquiry report held the appellant guilty – Consequent to which, appellant was compulsory retired by Deputy General Manager – Appellant submitted an appeal before Appellate Authority i.e., Field General Manager – During pendency of appeal, Field General Manager recommended award of two-third compulsory retirement pension – Later, appeal before the Appellate Authority was also dismissed – Appellant sought full retiral benefits before the High Court – The High Court upheld the decision of the Bank to reduce one-third of the pension payable to the appellant – Correctness: Held: A plain reading of regulation 33 of the Pension Regulations would show award of pension less than full pension is to be done with prior consultation of the Board of Directors – Such prior consultation with the highest authority of the Bank i.e., Board of Directors must be understood as a valuable mandatory safeguard before an employee’s constitutional right to pension is curtailed – In these circumstances, a post facto approval cannot be a substitute of prior consultation with the Board before the decision is made – The order of the Field General Manager reducing pension without prior consultation of Board of Directors and the order of the High Court is set aside – Thus, the Bank directed to take appropriate decision regarding reduction of pension after giving an opportunity of hearing to the appellant and with prior consultation of the Board. [Paras 21, 24]
Central Bank of India (Employees’) Pension Regulations, 1995 – Regn.33 (1) and (2) must be read conjointly: Held: Clause (1) and clause (2) of regulation 33 must be read conjointly and in all cases when the full pension admissible to a compulsorily retired employee under the regulations is reduced, a prior consultation with the Board is necessary. [Para 19] Central Bank of India (Employees’) Pension Regulations, 1995 – Regn. 33 – Central Bank of India Officer Employees’ (Discipline and Appeal) Regulations, 1976 – Competent Authority: Held: ‘Competent Authority’ is defined in both Discipline and Appeal Regulations and Pension Regulations as an authority appointed by the Board for the purpose of such regulations – In the Discipline and Appeal Regulations, it is further clarified Competent Authority must be superior to the delinquent and not an officer holding rank lower than scale IV officer – Clause 3(b) of Discipline and Appeal Regulations read with Schedule shows that an officer not below rank of Assistant General Manager and holding a rank higher than the disciplinary authority is the appellate authority under such regulation – A combined reading of the provisions in both the regulations would indicate a Field General Manager (holding a rank superior to disciplinary authority and higher than Assistant General Manager) is not only an authority superior to the disciplinary authority empowered to reduce pension under clause (1) but also the appellate authority under Discipline and Appeal Regulations who could exercise appellate powers to reduce pension under clause (2) of Pension Regulations. [Para 13]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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