IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE

THURSDAY, THE 26TH DAY OF OCTOBER 2017/4TH KARTHIKA, 1939

WP(C).No. 6897 of 2011 (J)

---------------------------

PETITIONER(S):
----------------------

1. UNNIKRISHNAN P.C.,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, AMRITHAPURI,
KOLLAM.

2. VIJOSH.K.V, RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, TIRUR, MALAPPURAM.

3. RENEEVE RAJ .R, RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, PALAGHAT ADB,
PALAGHAT.

4. PINCHU RAJAN,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, KAINADY,
ALAPPUZHA.

5. SABITH.S, RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,,
KODENCHERY,CALICUT.

6. REHANESH.N.P,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MUKKAM,CALICUT.

7. AJAN.V.P, RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, QUILANDY,CALICUT.

8. SHAJI.K.C,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, TIRUR TOWN,
MALAPPURAM.

9. DIYASREE,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, HARIPPAD,
ALAPPUZHA.

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

10. SREEJITH.S,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, MAVELIKKARA,
ALAPPUZHA.

11. JINESH.K.J,
RURAL MARKETING AND, RECOVERY OFFICERS,STATE BANK OF
INDIA,, KOOTTAR, KOTTAYAM.

12. ASWATHY.V.U,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, RAMAPURAM,KOTTAYAM.

13. ROBIN KOSHY VARGEESEN,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, KUTHIYATHODE,KOTTAYAM.

14. ELIZABETH VARGHESE,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, ULLALA, KOTTAYAM.

15. SUMANGALA,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, KAIPUZHA,KOTTAYAM.

16. STALIN.T,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA,ALUVA, ERNAKULAM.

17. SANEESH.S,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA,CHEKKIYAD, CALICUT.

18. PRIMA.C.P,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA,VADAKKANCHERY,THRISSUR.

19. RATHEESH.K.P,
RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA,PAYYANNUR, KANNUR.

20. SUBEER N.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, THALIPARAMBU, KANNUR.

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

21. AJAY K.ABRAHAM,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, KOOTHUPARAMBA, KANNUR.

22. AJAYAN T.T.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, IRINJALAKKUDA, THRISSUR.

23. SANIL RAJ,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, AVOLI, ERNAKULAM.

24. SMITHA U.B.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, PATTAMBI, PALAGHAT.

25. ANEESHA ARUN,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, VALLAPUZHA, PALAGHAT.

26. DHANYA E.C.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, CHERPULASSERRY, PALAGHAT.

27. SARIN GEORGE,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, QUILANDY, CALICUT.

28. LATHA P.S.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, KUNNAMKULAM, THRISSUR.

29. ANITHA CHERIYAN,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MANIMOOLI, CALICUT.

30. JAYAPRAKASH M.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, PERINTHALMANNA, CALICUT.

31. REHANESH N.P.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MUKKAM, CALICUT.

32. RAKESH CHANDRAN,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, OTTAPALAM, PALAGHAT.
TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

33. REJITH J.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, AGALI, PALAGHAT.

34. MOHAMMED ISMAIL,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, KONDOTTY, CALICUT.

35. SOFIALAIOUS S.P.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MANNARKAD, PALAGHAT.

36. BETTY BABU,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, VADAKKANTHARA, PALAGHAT.

37. SALOMI ANTONY,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, VALANCHERY, CALICUT.

38. RENJITH R.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MEENAKHIPURAM, PALAGHAT.

39. JIJITH R.S.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, CHERIYAPILLI, ERNAKULAM.

40. SHAINE T.,

RURAL MARKETING AND RECOVERY OFFICERS,, STATE BANK OF
INDIA, MALAPPURAM, CALICUT.

41. AJEESH KRISHNAN,RURAL MARKETING RECOVERY

OFFICERS,STATE BANK OF INDIA,PARAPPANANGADI,, CALICUT.

42. ASHA DEVI.K.G,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,,
KOTTARAKKARA,KOLLAM.

43. SURIYA,RURAL MARKETING AND RECOVERY

OFFICERS,STATE BANK OF INDIA,BHARANIKKAVU,, KOLLAM.

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

44. DEEPA VIJAYAN,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,,
ELAMANNUR,ALAPPUZHA.

45. ASHI SUSAN NINAN,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,,
KUMBANAD,ALAPPUZHA.

46. E.K.SURAJ KIRAN,RURAL MARKETING AND

RECOVERY OFFICERS,STATE BANK OF INDIA,, PALAKKAD.

47. K.P.GANESH,RURAL MARKETING AND RECOVERY

OFFICERS,STATE BANK OF INDIA,ADB PALAKKAD,, PALAKKAD.

48. RENJITH.J,RURAL MARKETING AND RECOVERY

OFFICERS,STATE BANK OF INDIA,KOOTTANAD,PALAKKAD.

49. SHIMLAL.P.T,RURAL MARKETING AND RECOVERY

OFFICERS,STATE BANK OF INDIA,KOOTHUPARAMBA,, KANNUR.

50. DANI.K,RURAL MARKETING AND RECOVERY

OFFICERS,STATE BANK OF INDIA,NORTH PARAVUR,, ERNAKULAM.

BY ADVS.SRI.P.N.MOHANAN
SRI.K.N.AJAYAN
SMT.I.VINAYAKUMARI
SRI.K.S.ARUNDAS
SRI. C.P.SABARI.

RESPONDENT(S):
--------------------------

1. THE CHAIRMAN, STATE BANK OF INDIA,

CORPORATIVE CENTRE,STATE BANK OF INDIA,, MADANA CAMA
ROAD,MUMBAI-400 021.

2. THE CHIEF GENERAL MANAGER,

HUMAN RESOURCES DEPARTMENT,STATE BANK OF INDIA,,
CORPORATE CENTRE,MUMBAI-400 021.

3. CHIEF GENERAL MANAGER,RURAL BUSINESS,

STATE BANK OF INDIA,CORPORATE CENTRE,, MUMBAI-400021.

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------
4. THE CHIEF GENERAL MANAGER,STATE BANK OF
INDIA,LOCAL HEAD OFFICE,KOVIL ROAD,,
THAMPANOOR,THIRUVANANTHAPURAM,PIN-695001.

* 5. THE GENERAL MANAGER,HUMAN RESOURCES

DEPARTMENT,SATE BANK OF INDIA,LOCAL HEAD OFFICE,
KOVIL ROAD,,
THAMPANOOR,THIRUVANANTHAPURAM,PIN:695001.(CORRECTED)

* (THE ADDRESS OF R5 IS CORRECTED AS THE GENERAL

MANAGER,STATE BANK OF INDIA, HUMAN RESOURCES
DEPARTMENT, LOCAL HEAD OFFICE,KOVIL ROAD,,
THAMPANOOR,THIRUVANANTHAPURAM,PIN:695001 AS PER
ORDER DATED 09.03.2011 IN IA 3932/2011).

* 6. THE DEPUTY GENERAL MANAGER,RURAL

BUSINESS UNIT,LOCAL HEAD OFFICE,STATE BANK OF
INDIA,KOVIL ROAD,,
THAMPANOOR,THIRUVANANTHAPURAM,PIN:695001.(CORRECTED)

* (THE ADDRESS OF R6 IS CORRECTED AS THE DEPUTY

GENERAL MANAGER,STATE BANK OF INDIA, RURAL BUSINESS
UNIT,LOCAL HEAD OFFICE,KOVIL ROAD,,
THAMPANOOR,THIRUVANANTHAPURAM,PIN:695001 AS PER
ORDER DATED 09.03.2011 IN IA 3932/2011).

* ADDRESS OF R5 & R6 ARE CORRECTED AS PER ORDER

DATED 09.3.2011 IN IA.3932/2011

*ADDL.R7 IMPLEADED

ADDL. R7. UNION OF INDIA,

REPRESENTED BY ITS SECRETARY, FINANCIAL SERVICES,
MINISTRY OF FINANCE, DEPARTMENT OF ECONOMIC AFFAIRS,
NORTH BLOCK, NEW DELHI - 110001.

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

*ADDL.R8 IMPLEADED

ADDL. R8. TRUSTEES OF STATE BANK OF INDIA PENSION FUND ,

C/O.STATE BANK OF INDIA CORPORATE CENTRE, MADAME CAMA
ROAD, MUMBAI - 400021.

*ADDL. R7 & R8 ARE IMPLEADED AS PER ORDER

DATED 15.7.2013 IN IA.NO.9554/2013.

R1 TO R6 & ADDL.R8 BY ADV. SRI.P.V.SURENDRANATH,SC

ADDL.R7 BY ADV. SRI.N.NAGARESH, ASG I

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD

ON 25.9.2017, THE COURT ON 26.10.2017 DELIVERED THE
FOLLOWING:

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

APPENDIX

PETITIONERS' EXHIBITS

EXHIBIT P1:- A TRUE COPY OF THE DECISION OF THE MANAGEMENT

DATED 20.7.2010.

EXHIBIT P2:- A TRUE COPY OF THE APPOINTMENT ORDER ISSUED

ON 30.7.2010 ISSUED TO THE FIRST PETITIONER.

EXHIBIT P3:- A TRUE COPY OF THE AMENDED RULES.

EXHIBIT P4:- A TRUE COPY OF THE RELEVANT PORTION OF THE SERVICE

RULES.

EXHIBIT P5:- A TRUE COPY OF THE PAY SLIP ISSUED TO THE 1ST PETITIONER,

EXHIBIT P6:- A TRUE COPY OF THE PAY SIP ISSUED TO THE 2ND PETITIONER.

EXHIBIT P7:- A TRUE COPY OF THE PETITION DATED 8.12.2010 FILED BEFORE
THE 4H RESPONDENT.

EXHIBIT P8:- A TRUE COPY OF THE CIRCULAR DATED 27.9.2010 OF THE 3RD
RESPONDENT.

EXHIBIT P9:- A TRUE COPY OF THE PETITION DATED 20.2.2011.

EXHIBIT P10:- A TRUE COPY OF THE PETITION DATED 31.1.2011 FILED BEFORE
THE FIRST RESPONDENT.

EXHIBIT P11:- A TRUE COPY OF THE COUNTER AFFIDAVIT FILED BY THE BANK
IN WP(C)NO. 6897/2011.

EXHIBIT P12:- A TRUE COPY OF THE DEFINED PENSION SCHEME INTRODUCED

BY THE BANK.

RESPONDENTS' EXHIBITS

EXHIBIT R1(A):- A TRUE COPY OF THE NOTE NO.HR CM6:SPL:612

DATED 20.7.2010 AND APPOINTED AS RURAL MARKETING AND
RECOVERY OFFICERS(RMRO).

TS
WP(C).No. 6897 of 2011 (J)
-------------------------------------

EXHIBIT R1(B):- A TRUE COPY OF THE E-CIRCULAR

NO.RABG/RB-AC-AC 8/2010-11 DATED 04.10.2010.

EXHIBIT R1(C):- COPY OF THE RELATIVE NOTE APPROVED BY THE CIRCLE

MANAGEMENT COMMITTEE ON 27.3.2011 APPROVING THE
POSTING OF 50% OF THE RURAL MARKETING RECOVERY
OFFICER AS FIELD OFFICERS.

EXHIBIT R1(D):_ A TRUE COPY OF THE TRANSFER POLICY FRAMED BY THE

BANK FOR RMRO.

EXHIBIT R1(E)(I):- A TRUE COPY OF THE LETTER DATED 11.7.2011.

EXHIBIT R1(E)(II):- A TRUE COPY OF THE ENCLOSURE RECEIVED FROM THE

ASSOCIATION.

/TRUE COPY/

PS TO JUDGE

TS
 A.MUHAMED MUSTAQUE, J.
=========================
W.P.(C).No.6897/2011
~~~~~~~~~~~~~~~~~~~~~~~~~
Dated this the 26th day of October, 2017

J U D G M E N T

1. The State Bank of India is a creation of the parliament statute

called the State Bank of India Act, 1955 (hereinafter referred to as

the “Act”). The Act itself was enacted to establish the State Bank

and to regulate the business of banking and other businesses in

accordance with the provisions of the Act and also for the purpose

of the taking over the undertaking of the imperial bank. In exercise

of the powers conferred by sub-section (1) read with clause (o) of

sub-section (2) of Section 50 of the Act, the State Bank formulated

a Pension Scheme called the State Bank of India Employees'

Pension Fund Rules (for short, the “Pension Rules”). This Pension

Scheme was introduced in the year 1965. However, this was

implemented with retrospective effect from 1st July, 1955. The

employees of the bank, who are entitled for pension as per the

terms and conditions of service would become the member of the

fund from the date on which they are confirmed in the service of
WPC 6897/2011
-:2:-

the bank, or from the date on which they may be required to

become the members of the fund under the terms and conditions

of their appointment, (see Rule 7 of the Pension Rules).

2. The issue in this writ petition is raised by permanently absorbed

officers working on contract basis as on 14.7.2010. They were

absorbed in the service of the Bank with effect from 2.8.2010

onwards. Ext.P1 is the policy decision taken by the Bank. It is

specifically stated therein that these absorbed officers will not be

entitled to the benefit of existing pension fund and they will be

covered under the new Pension Scheme. Thereafter, the Bank

formulated a new Pension Scheme. The new Pension Scheme is

applicable to all employees, who joined on or after 1.8.2010. This

new pension scheme appears to be in tune with the Central

Government decision. The Central Government evolved a policy of

a contributory pension scheme. The writ petition was filed in the

year 2011. The prayer originally was for the pension under the old

Pension Scheme. Thereafter, the writ petition was amended

challenging new Pension Scheme as well. The main ground for

challenge is that the new Pension Scheme made applicable to all

WPC 6897/2011
-:3:-

new recruitees is not in conformity to the statutory provisions of the

State Bank of India as referable under Section 50 of the Act.

3. There are two questions involved in this matter; first, whether the

petitioners are entitled to be enrolled in the Pension Scheme which

was formulated under the Pension Rules or not and; second,

whether contributory pension scheme introduced by notification

dated 15.9.2014 is bad on account of non compliance of procedure

referable under Section 50 of the Act.

4. It is to be noted that the petitioners were appointed in the year

2010. In the appointment order it is stipulated as follows:

“ix. As these officers are to be covered under the New

Pension Scheme, the Circles will deduct officers'
monthly contribution (10% of basic pay and DA) and
park in Sundry Deposit a/c till the modalities of the
scheme are finalised. In such cases, Bank's
contribution to the Pension Fund, as per the existing
Rules will not be made.”

5. There was no challenge against the condition stipulated for

permanent absorption. Further, the petitioners have no case that

similarly situated regular employees who were recruited in the year

2010 or thereafter were covered as per the Pension Fund

WPC 6897/2011
-:4:-

introduced in 1965. No doubt, pension is not a bounty to be given

by the employer. The right to claim pension, however, will have to

be governed by any rule. If the terms and conditions in the

appointment deny such pension with reference to any scheme that

was prevalent, certainly, it is a matter for the aggrieved to

challenge the same. It is to be noted that as per the terms and

conditions of the absorption, it was stipulated that the petitioners

would be governed by the new Pension Scheme. Further, Rule 7 of

the Pension Rules clearly states that the right to become a

member of the Fund would depend upon the terms and conditions

of the service. The learned counsel for the petitioners, relying

upon Rule 45 of the State Bank of India Officers Service Rules,

would argue that as a matter of fact the employees are entitled to

subscribe to the Pension Fund. It is appropriate to refer Rule 45

which reads as follows:

“45. Provident Fund and Pension:- Unless otherwise

directed by the competent authority and subject to the
provisions of the rules of the State Bank of India
Employees' Provident Fund and the State Bank of
India Employees' Pension Fund, every officer shall
WPC 6897/2011
-:5:-

become a member of each of the said funds, if he is

not already a member, and shall subscribe and agree
to be bound by the rules of these funds.”

In fact, the above provision would clearly show that the right to

become the member of the Fund would be subject to the Pension

Rules. As already noted, Rule 7 of the Pension Rules clearly

stipulates that the right to become member of the Fund would

depend upon the terms and conditions of the service. Therefore,

the petitioners as a matter of right cannot demand their inclusion in

the Pension Fund unless service conditions permit so. It is also

crystal clear that the petitioners were not denied any benefit that

have been given to any other similarly situated employees, who

were recruited after 1.8.2010, so as to cry a foul on the ground of

arbitrariness. It is within the terms of the statutory competence of

the bank to formulate service conditions. The employee cannot

himself decide what should be the terms and conditions of service.

Having accepted the terms and conditions and without raising any

challenge against such terms and conditions, the employee cannot

claim that he should be governed by the Pension Rules.

WPC 6897/2011
-:6:-

Therefore, the petitioners' demand that they should be admitted to

the Pension Fund under the Pension Rules is legally

unsustainable.

6. The next question is whether the new Pension Scheme introduced

for the employees recruited with effect from 1.8.2010 is bad on

account of non compliance of the procedure referred under Section

50 of the Act or not. This new Scheme of Pension was introduced

based on the policy decision of the Central Government. Section

50 enumerates matters which require Regulations to be framed by

the Central Board of the State Bank of India. The Central Board is

given power to make Regulations after consultation with the

Reserve Bank of India and with previous sanction of the Central

Government. Sub-section (4) of Section 50 provides that every

Regulation shall be forwarded to the Central Government so as to

place it before each of the Houses of Parliament. To have the

legal effect, Regulation must muster the approval of both the

Houses.

7. Admittedly, the Regulation as above was not forwarded to the

Central Government and also was not placed before both the
WPC 6897/2011
-:7:-

Houses of Parliament.

8. However, the learned Senior Counsel for the Bank would argue

that the bank has every power to determine terms and conditions

for appointment as flowing from the power under Section 43 of the

Act and therefore, the bank does not require to follow the

procedure under Section 50 in respect of the matters covered by

the terms and conditions of the service. The learned Senior

Counsel also argued that in the light of the fact that the bank is

implementing the policy decision of the Central Government, such

procedure as referred under Section 50 need not be adhered to.

The learned counsel particularly pointed out mandate of Section 18

of the Act which states that the bank shall be guided by such

direction of the Central Government in the matters of policy.

9. New Pension Scheme is called the State Bank of India Employees'

Defined Contribution Pension Scheme. Ext.P12 is the copy of the

new Pension Scheme. As seen from the said Scheme, it was

introduced by invoking the powers conferred to the Central Board

in terms of Section 43 of the Act.

10.The very reading of the new Pension Scheme makes it clear that it
WPC 6897/2011
-:8:-

was not brought as a Regulation as contemplated under Section

50 of the Act. There cannot be any doubt as to the power available

to the Central Board to determine the terms and conditions of

appointments. Section 43 gives ample room to understand the

scope and amplitude of such power. However, such conditions

having the impact of Regulations as referable to Section 50 can be

given effect only by following the procedure contemplated under

Section 50. The new Scheme of Pension clearly comes within the

ambit of Section 50(2) (o) which reads as follows:

“The establishment and maintenance of

superannuation pension, provident or other funds for
the benefit of the employees of the State Bank or of the
State Bank or of the dependents of such employees or
for the purposes of the State Bank, and the granting of
superannuation allowances, annuities and pensions
payable out of any such fund;”

11.When parliament intends that such matters regulating affairs of

the Bank will have to be done in particular manner, that cannot be

overlooked to give effect, with reference to the general power

available with the Board. The power determining terms and

conditions of the appointment is a general power when it is

WPC 6897/2011
-:9:-

compared to the power to make Regulations in relation to pension

which is a component of service conditions. The parliament

specifically laid that matters specified in Section 50 will have to be

regulated in such a manner as provided under Section 50. Thus,

those matters which are covered under Section 43 overlapping

with matters enumerated under Section 50 requires to follow the

procedures under Section 50. Sections 43 and 50 have to be read

together in such a situation. The service conditions related to

pension under a scheme must follow the procedure of Section 50

(4). As seen from Ext.P12, this was more introduced as an

establishment and maintenance of Pension Scheme applicable to

the employees with effect from 1.8.2010 rather than any other

service conditions of the employees. Thus, it has to be viewed that

to bypass the regulatory regime, the Central Board referred its

power to Section 43 to give a legal cover. The argument of the

learned Senior Counsel of the Bank implementing policy of the

Central Government is of no avail. Even if the bank was

implementing policy of the Central Government, it cannot overlook

statutory mandate. The policy cannot overtake mandate of

WPC 6897/2011
-:10:-

statutory provisions. Thus, I have to hold that the new Pension

Scheme will have to be introduced as a Regulation, as

contemplated under Section 50 and will have to follow the

procedure under Section 50(4) to have a legal effect.

12.The discussions as above would clearly show that the petitioners

cannot demand to be admitted as a member of the Pension Fund

under the Pension Rules. Consequent upon finding that new

Pension Scheme cannot be given legal effect without following the

procedure under Section 50(4), the petitioners also cannot be

given any relief as they are not entitled to be admitted to become a

member of the Pension Fund as the terms and conditions of the

appointment do not permit them to become a member of such

Fund. Inevitable consequence is that the Central Board has to

take a decision in the matter as to what manner the petitioners

should be governed for pension. The petitioners cannot be denied

pension as the service conditions itself make it clear that the

petitioners would be entitled for pension as per the “new Pension

Scheme”. However, it is for the Central Board to decide whether to

validate the “new Pension Scheme” introduced by them following

WPC 6897/2011
-:11:-

the procedure under Section 50 or not. It is also open for the

Central Board of the Bank to consider whether the petitioners

should be admitted to the Pension Fund covered by the Pension

Rules. Thus, the writ petition is disposed of as above. Needful

shall be done by the Central Board in the light of the discussions

as above, within a period of three months.

Sd/-

A.MUHAMED MUSTAQUE, JUDGE

ms