SC Issues Notice For Consolidation Of Pleas On Including Special Or Dearness Allowance For Calculation Of Superannuation Benefits To Bank Employees
The Supreme Court recently in a Transfer Petition filed by the Indian Banks’ Association (IBA) stayed all the cases dealing with the issue arising in various writ petitions pending before different High Courts on whether the Special Allowance or the Dearness Allowance should be reckoned for calculation and payment of superannuation benefits to the employees of various banks.
The Bench of Justice Hrishikesh Roy and Justice Pankaj Mithal noted the submissions on behalf of the Indian Banks Association that all the writ proceedings be consolidated in one High Court to avoid multiplicity of proceedings or conflicting judgments and accordingly directed that "Except Writ Petition (C) No. 867 of 2019 and Writ Petition (C) No. 4532 of 2019 pending in the Delhi High Court, in similar cases pending in the other High Courts be kept in abeyance, until the returnable date."
The Bench also allowed the Petitioner to implead all the writ petitioners in the High Courts so that they are put on notice about the present transfer petition. The Court stayed all the proceedings before the various High Courts except the Delhi High Court on noting that the first writ petition on the issue was filed in Delhi.
Solicitor General Tushar Mehta along with Advocate-on-Record Siddharth Sangal appeared for the Indian Banks Association. It was submitted in the plea that various writ petitions have been filed in various High Courts all over India by the retired employees of the various banks, inter-alia, challenging the Joint Note and the modifications brought by the respective banks in line with the Joint Note and similar circulars and regulations wherein the special allowance or the dearness allowance was not reckoned for calculation and payment of superannuation benefits to the employees of the banking sector.
The plea stated that the questions/issues involved in all these writ petitions are the same and/or substantially the same viz. claiming superannuation benefits as per the Payment of Gratuity Act, 1972, Employees Provident Funds & Misc. Provisions Act, 1952 and Pension/Gratuity Regulations etc. without the modifications as implemented above i.e. the case of the petitioners in the writ petitions is that the special allowance or the dearness allowance payable thereon should be reckoned for calculation and payment of superannuation benefits, and in line with what is admissible to the central government employees.
Praying that it would be expedient and practical that all these writ petitions involving the same questions/issues and/or substantially the same questions/issues are heard and decided by one Court so that there is finality and uniformity in arguments, hearings, procedures and decisions, the Bank Association sought the consolidation of the proceedings.
"Since the Banks have branches all over India in almost all the States, divergent views of the High Courts in these matters would make the circumstances created by the decisions ambiguous and impossible to implement," read the plea. The Joint Note dated May 25, 2015, was incorporated and implemented by the member banks by bringing in the desired modifications in the payment of the superannuation benefits in line with the recommendations provided in the said Joint Note. In other words, the special allowance or the dearness allowance thereon was not to be reckoned for calculation and payment of superannuation benefits to the employees of the banking sector w.e.f. November 1, 2012.
Cause Title: Indian Banks’ Association v. Kamal Kumar Kalia & Ors. [Transfer Petition(s)(Civil) No(s).1394/2023]
