In Brief
The Supreme Court held that employees who completed 15 years of service under the SBI Voluntary Retirement Scheme (VRS) implemented in 2001 were entitled to proportionate pension. The VRS, approved by the Central Board based on Government and Indian Banks Association guidelines, constituted a contractual package where pension was an essential benefit for 15-year employees. The bank's subsequent clarification denying pension and failure to amend rules violated Article 14 by constituting unfair, arbitrary action. The Court applied principles against unconscionable contracts and inequality of bargaining power, holding that the State-owned bank could not wriggle out of its obligations. Arrears were ordered payable within three months, with 6% interest if delayed.
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