Through Special Messenger/Speed Post/Email

Dated- 7 oct 2020

To,
1. The Managing Director,
Indian Bank
Corporate Office
254-260, Avvai Shanmugam Salia,
Royapettah, Chennai-600014
Email md@indianbank.co.in, cmdec@indianbank.co.in

2. The General Manager

Indian Bank,
Corporate office,
HRM, Pension and Gratuity section
254-260, Avvai Shanmugam Salia,
Royapettah, Chennai-600014
Email gmhrmsect@indianbank.incohrmpension@indianbank.co.in

3. Hon’ble Finance Minister

Government of India
Finance Ministry
New Delhi
fmo@nic.in

4. The Secretary,
Deptt of Financial Affairs,
Ministry of Finance,
Govt of India
New Delhi
Through email Secy-fs@nic.in

Ref: A representation for payment remaining gratuity re-fixation

of pension, recalculation of commuting pension and gratuity and
addition of DA, special allowances & others components of basic
pay/salary.
Sir/Madam
The Undersigned has been retired as ……….from Allahabad Bank,
which has now been merged with Indian Bank . The undersigned had opted
for the pension scheme in the bank which entitled him the pension,
commutation of pension, gratuity and other retirement benefits, after my
retirement.
The undersigned has served Allahabad Bank between the period of
_________and got his retirement under VRS/superannuation scheme from
the post of _______ on ______,after serving the bank for total period of
________years………months…….days. The said bank, while calculating the
gratuity & pension pertaining to the undersigned, did not adopt the method
of calculation in accordance with the precedent set up with the judgment of
Hon’ble High Courts and the Apex Court, ignoring the fact that various
judgments have attained finality. A list of judgments for your kind perusal,
with the relevant indicative Gist is being annexed herewith and marked as
Annexure A-1.

The calculation of pension, gratuity considering special allowances incumbent

upon, the method adopted by your good office to deliver the due benefits to
your ex-employees entitled for the same, was not done in compliance with
the precedents supposed to be set in view of judgments passed by Hon’ble
Apex Court. The right, entitlement and interest of the undersigned emerge
intriguingly with the classical interpretation of judgment passed by the
Hon’ble Apex Court. It is worth mentioning to your good self that the
interpretation of the law, act or rule relating to the welfare of the masses,
needs to be interpreted in a liberal manner by not curtailing the right of the
person to whom the welfare act delivers the benefit. The cumulative and
collective examination of judgment while setting a precedent, gives right,
entitlement and interest to the undersigned and other like employees, in the
most apparent manner, with the high motive of avoiding the multiplicity of
litigation. In one of the cases, the Hon’ble Apex Court has passed a general
direction to avoid the flooding of cases demanding similar rights, and further
given to understand categorically that curtailing the said entitlement of the
employee would amount to non-compliance and disobedience of the order.
Needless to say, the said act would be conterminous.
The judgments passed by Hon’ble Apex Court determine a method to be
adopted by the banks in calculating the retirement benefits and no scope has
been left to get the same interpreted by way of applying other lawful
interpretations because the said act, rule and scheme in connection to
retirement benefit is covered under and taken as a welfare scheme. Similarly,
it is settled principle of law that the benefit given to an employee by way of
statutory rules & regulations can never be the subject matter of any review
to be curtailed or withdrawn. The same rule shall be applicable towards
special allowance, as the same is part of basic pay. It is a settled connotation
of law applicable on service law that the gratuity is an inseparable part of
eligible terminal dues like the other components of basic pay viz dearness
allowance, special allowance, stagnation, increment and PQP.
It is worth noting that the gratuity is a part of eligible terminal dues. Gratuity
is payable to officers as per the provisions of the Allahabad Bank officers
service regulations. The same is linked with pay as defined in Reg-3 (K).
Admittedly, the definition of pay is inclusive definition and other components
of basis pays like Dearness Allowance, Special Allowance, Stagnation
increment, PQP, fixed personal pay should be added for the purpose of
calculation of gratuity and pension etc. The basic principle where the wages
are universally and quintessentially paid to all employees across the board,
such emoluments are considered as basic wages. As such, exclusion of special
allowance from the component of the basic pay is not permissible for the
purpose of deduction of provident fund. Therefore, the special allowance
shall be taken as part of basic pay for calculating the gratuity payable and
pension being paid to the officers of the bank.

The rules & regulations governing the grant of pension is a social welfare
measure and protected by Article 14 of the Constitution of India from
exercising any arbitrariness. That further entitles fairness & equal treatment
by avoiding different methods of calculation in view of type of scale, or for
the purpose of continuing the service up to the age of retirement, and other
for after the retirement. The calculation of pension and gratuity and other
components of pay should be taken into consideration while calculating the
pension, that too in view of equality and fairness. The Constitution of India
does not give any right to the banks/employers to treat the set of its
employees discriminately while adopting the method of pension and other
retirement benefits.
The gratuity as payable to officer as per Allahabad Bank service linked with
the pay as defined in Regulation 3 (K), the definition of pay is inclusive of
definition of other component like DA, SA, SI, PQP etc., further personal pay
should be added for the purpose of persons gratuity etc., Sec 7 (3A) of gratuity
act entitles the Undersigned to claim interest as decided by central Govt.
applicable on all funds relating to terminal benefits which is further applicable
in Allahabad Bank. Furthermore the date of undersigned’s retirement (as the
time is essence) entitling him to get the benefit as he retired after the scaled
year of 2012. The notification issued by the central government notifying the
rate of interest @ 10% is also applicable for calculation of one month
raise/pay for gratuity in absence of procedure of calculating in Allahabad Bank
services regulations, the provision of Gratuity Act (of dividing wages pay by
26) would be attracted.
It is worth mentioning that provison to Regulation 46 (2) profoundly explains
that the officers who have completed more than 30 years of their service shall
be entitled for gratuity for an additional amount the rate of one and half
month for each completed year of service, beyond the rate of one and a half
month pay and no requirement to add word “additional amount”. Therefore,
the rate of payment of gratuity beyond 30 years would be one and half month
pay (equivalent to 45 days) for every completed year of service.
By way of the present representation, the undersigned seeks appropriate
direction by your good self towards calculating the pension in view of the
precedent set up by Hon’ble Apex Court and for release of balance amount of
pension, commutation, gratuity etc. For your good self’s convenience, a
calculation sheet, commutation and gratuity is being annexed as Annexure A-
2.
It is further re-iterated that the purpose of calculation of gratuity (up to both
30 years and post 30 years of service payable) to Applicant, his monthly pay
should be calculated by dividing the monthly pay last drawn by 26 and
multiplying by 30. That gratuity beyond 30 years of service be calculated at
the rate of one and half of month’s pay (i.e. 30+15 days = 45) for each
completed year of service beyond 30 years. The Special Allowance paid shall
be added as a component of basic pay for the purpose of determining the
monthly pay, and the same may be taken for payment of Gratuity. Further,
the pension shall be re-fixed after adding Special Allowance as per general
direction given by Hon’ble Supreme court in Vivekanand Vidya Mandir case
(Supra).
Kindly re-calculate The amount of Commuted Pension and pay the arrears by
recalculating in view of precedents. That interest at the rate of 10 % on
balance amount of gratuity and other arrears from the date of retirement to
the date of payment should be paid by the bank to the undersigned.

In view of the aforementioned, recalculate the aforementioned

retiremental/terminal benefits i.e pension, gratuity , permutation etc. in
accordance with the apex courts judgments and refix the pension after adding
special allowance in the larger interest of justice. And further give the
direction to pay 10 % of interest over the balance amount of gratuity and
other arrears, payable to the undersigned, in view of the said legal position
within a period of 15 days from receipt of this representation.

Applicant
Name
PF/employee serial No.
Address
Mobile No.
Email address

Enclosure:
1. Annexure A-1
Gist of judgments

2. Annexure A-2
Calculation sheet