In Brief
Retired employees of Punjab State Cooperative Agricultural Development Bank challenged the bank's deletion of Rule 15(ii), which provided a pension scheme introduced in 1989. The bank attempted to withdraw the scheme citing financial distress, retrospectively depriving employees of pension rights they had been continuously receiving since 1989. The Supreme Court held that once a pension scheme is consciously introduced and employees exercise the option to join, their pension rights become vested and accrued. Retrospective withdrawal of such rights violates Articles 14, 16, and 21 of the Constitution. Financial constraints do not justify divesting vested rights essential for socio-economic security. The Court dismissed the bank's appeals and directed payment of pension arrears and ongoing pension to entitled members.
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