Madras High Court
K.S.Rengarajan vs Indian Overseas Bank on 19 June, 2025
W.P. No.14062 of 2002
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 19.06.2025
CORAM :
THE HONOURABLE MR. JUSTICE MUMMINENI SUDHEER KUMAR
W.P.No.14062 of 2002
1 K.S.Rengarajan
2 S.Kruparam
3 N.Srinivasan
4 N.Sampath
5 K.Srinivasan
6 N.Ramasastrulu
7 P.Padmanabham
8 P.K.Shantharam
9 Suseela Venkataraman
10 Radha Vijayaraghavan
11 V.K.Venugopal ... Petitioners
Vs.
1 Indian Overseas Bank,
Rep. by the Chairman & Managing Director,
Central Office, 762, Anna Salai
Chennai-600 002.
2 The Competent Authority,
For Pension Regulations,
(General Manager)
Indian Overseas Bank,
Central Office, 763, Anna Salai
Chennai-600 002.
3. Union of India,
Represented by its
Secretary to the Banking Division,
Ministry of Finance,
New Delhi – 110 001. ... Respondents
(R3 impleaded as per order dated 04.09.2007 in
WMP Nos.17437 to 17439 of 2006)
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W.P. No.14062 of 2002
Prayer : Writ Petition filed under Article 226 of the Constitution of India,
praying for issuance of Writ of Declaration, declaring that Sub-Clause (c)
of clause (s) of Regulation 2 of Indian Overseas Bank (Employees)
Pension Regulation, 1995, is null and void and direct the second
respondent to pay the difference in Basic Pension and Additional Pension
and Commutation of Pension with interest at the rate to be determined by
this Court, in terms of the Indian Overseas Bank (Employees') Pension
Regulations, 1995.
(Prayer amended as per order dated 04.09.2007 in W.P.M.P.Nos.17437 to
17439 of 2006)
For Petitioners : Mr.V.Kalyanaraman
For Respondents : Mr.S.Srivijai for
Aiyar & Dolia
ORDER
This Writ Petition has been filed seeking to issue a Writ of
Declaration, declaring that Sub-Clause (c) of clause (s) of Regulation 2 of
Indian Overseas Bank (Employees) Pension Regulation, 1995, is null and
void and direct the second respondent to pay the difference in Basic
Pension and Additional Pension and Commutation of Pension with
interest at the rate to be determined by this Court, in terms of the Indian
Overseas Bank (Employees') Pension Regulations, 1995.
2. Today when the matter is taken up for consideration, it is brought
to the notice of this Court by the learned counsel for the petitioners that
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the very same issue fallen for consideration before the Division Bench of
this Court in W.P.Nos.970, 5918 and 19830 of 2002 and the Division
Bench by an order dated 16.04.2018 following the orders passed by the
Hon'ble Apex Court in S.L.P.No.18139 of 2012 (Civil Appeal No.5525 of
2012), dated 13.02.2018, disposed of the same by observing thus:
“11. In Civil Appeal No.5525 of 2012, dated
13.02.2018 (Bank of Baroda and another V. G.Palani and
others), the Supreme Court held that Explanation (c) to
Regulation 2(s) was ultra vires, void and unenforceable.
Pension has to be calculated on the basis of average pay of
the employees during the preceding ten months of the date of
retirement irrespective of the date of retirement.
12. The issues raised in these writ petitions are covered
by the Judgment of the Hon'ble Supreme Court in Civil
Appeal No.5525 of 2012, dated 13.02.2018 (Bank of Baroda
and another V. G.Palani and others) etc., batch.
13. The respondents shall recompute the pension of the
petitioners on the basis of the average salary drawn by the
petitioners during the preceding ten months prior to the
respective dates of their retirement. The balance due payable
to the petitioners shall be paid within four months from date
along with 9% interest per annum calculated as per reducing
balance.”
3. In the light of the above, this Court is convinced that this Writ
petition also can be disposed on the same lines. Accordingly, the
respondents are directed to recompute the pension of the petitioners on the
basis of the average salary drawn by them during the proceeding ten
months prior to the respective dates of their retirement. The balance due
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payable to the petitioners shall be paid within a period of four months
from the date along with 9% interest per annum calculate as per the
reducing balance.
4. With the above terms, this Writ Petition is disposed of. No costs.
19.06.2025
Index : Yes/No
Speaking Order : Yes/No
Neutral Citation : Yes / No
vum
To:
1 Indian Overseas Bank,
Rep. by the Chairman & Managing Director,
Central Office, 762, Anna Salai
Chennai-600 002.
2 The Competent Authority,
For Pension Regulations,
(General Manager)
Indian Overseas Bank,
Central Office, 763, Anna Salai
Chennai-600 002.
3. The Secretary to the Banking Division,
Ministry of Finance,
Union of India,
New Delhi – 110 001.
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MUMMINENI SUDHEER KUMAR,J.,
vum
19.06.2025
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