An excellent observation made by the Apex Court regarding illegality of an amendment
to regulation to give it effect retrospectively and ultimately striking it down as void.
Views:
1.The same rationale shall stand good for application wherever the IBA resorted/resorts
for amendment to Regulations with retrospective effect through introduction of cut-off dates etc.,
i) implementation of 100% DA neutralization for those retired only after the cut-off date
01 11 2002 giving effect to it from 01 05 2005 rendering those retired prior to 31 10 2002
ineligible for such 100% DA neutralization despite removal of such a cut-off date
01 11 2002 for the said purpose by the RBI ( obviously with prior sanction from GOI-MOF )
vide its circulars dated 01 04 2008 and 01 01 2010 ,
ii) implementation of one more option under the terms of Joint Note dated 27 04 2010
imposing an illegal and irrational cut off date 27 11 2009 for extending of the benefits of
pension for those retired between 29 09 1995 and 26 11 2009 and got admitted into the
Pension Fund in terms of the said Joint Note irrespective of their date of retirement, from
the respective following date of which , the said retirees are entitled to the benefits of
pension having regard to the mandatory provisions under Regulation 52(1), besides
iii) implementation of illegal terms of Joint Note whereby collecting of illegal contribution of
2.8 months of equal pay for Nov.2007 from serving employees on rolls as on 27 04 2010;
collecting of a lump sum of 56% equal of settled CPF +interest accrued thereon from the
retired employees joining the Pension Fund under the terms of Joint Note irrespective of
their date of retirement between 29 09 1995 and 27 04 2010 instead of collecting only 6%
simple interest per annum along with the said settled CPF from their respective date of
settlement of CPF till its refund to the credit of Pension Fund.
2. In the light of the above judgment it is imperative that in respect of 100% DA case ,
the Apex Court shall be boundto uphold the validity of Clause 6 of the bed rock of Pension
Settlement dated 29 10 1993as had been viewed by the Kolkata High Court duly basing its
observations on earlier 100% DA neutralization implemented by RBI vide its circulars dated
01 04 2008 and 01 01 2010 as the firm basis for the IBA to get the same implemented after
following due procedure as laid down under the provisions of Section 19 of the Act 5 of 1970.
3.Similar situation shall prevail too in respect of rationalization of the Family Pension structure
by IBA in line with RBI that had implemented the revised Family Pension rates w.e.f 01 01 2013.
4. IBA shall devise the formulae for updation of pension under Appendix I for each and
every wage revision that took place after 01 11 1997 following due procedure laid down
under Section 19 of the said Act 5 of 1970/1980 having regard to the specific provision duly
made for the purpose there under Regulation 35(1) while exercising the mandatory provision
for the purpose under Regulation 56 if at alldeemed necessary , even though no such scope
for any ambiguity could be left while laying down the amendment to Regulation 35(1) for that
specific purpose of Updation.
Hope prudence shall prevail on the concerned MOF, RBI, IBA and the Boards of PS Banks while
interpreting the Law in accordance with the solid observations of the Apex Court in this Land Mark
(Historical) Judgment and lead them to initiate appropriate ameliorative measures to get removed/
resolved all the legal infirmities hitherto got introduced and illegally implemented by the Boards.
Kudos Sri. Devulapalli Srinivasa Murti Garu.
With Regards.
Satyanarayana
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