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Supreme Court of India 2018-10-26 dismissed

National Insurance Special Voluntary Retired/Retired Employees Association & Anr vs United India Insurance Co. Ltd. & Anr

Bench: 2 — Sanjay Kishan Kaul

In Brief

Ex-employees of general insurance companies sought additional pension benefits under a 1995 scheme (including an extra five years' notional service credit) despite having opted for a special voluntary retirement scheme in 2004 that explicitly excluded this benefit. The Supreme Court held that statutory or contractual voluntary retirement schemes must be strictly adhered to as drafted. Employees cannot selectively claim benefits from multiple schemes. The 2004 scheme was a complete package, and nothing more than what it explicitly stated could be claimed. Casual observations in prior judgments could not override the scheme's explicit terms without formal notification. The Court dismissed the appeals, affirming that voluntary retirement schemes must be followed strictly to preserve their integrity.

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Insurance Law Labour Law Employee Benefits Pension Schemes Statutory Interpretation Contract Voluntary Retirement Public Law

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