In Brief
The Supreme Court resolved a conflict between High Courts on whether banks could reduce pension calculations for officers who retired between April 1998 and October 2002 by retrospectively amending pension regulations. The Court held that pension is a vested right earned through service, not a discretionary bounty, and cannot be taken away retrospectively. Although a 1999 Joint Note between the banks and officers' association addressed pay revision, it lacked statutory force and could not override statutory pension regulations. A January 2003 amendment to the definition of "pay" in the regulations was invalid as it conflicted with clear provisions requiring pension calculation based on emoluments drawn in the preceding ten months from retirement. The Court struck down the amended provision as arbitrary and violative of constitutional protections, affirmed the High Courts of Karnataka and Madras, and ordered payment of due amounts with 9% interest within four months."
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