D. P. Wadhwa, J. - (1.) This appeal by the State Bank of India (for short, the 'Bank' or 'State Bank') arises out of the judgment dated August 22, 1983 of the learned single Judge of the High Court of Delhi. The reasons for the judgment were given by order dated September 2, 1983. The impugned judgment was delivered on a writ petition filed by the respondent, C. B. Dhall. Dhall had challenged the order of the Central Board of the State Bank dated June 4, 1980 by which it was resolved that "the sanction to retire you be withheld and the Bank's contribution to your Provident Fund Account amounting to Rs. 24006.49 be forfeited" which decision was communicated to Dhall by letter dated July 16, 1980 of the Chief General Manager of the Bank. The High Court allowed the writ petition and quashed the Resolution of the Central Board as well as the communication by which it was conveyed to Dhall. The High Court further ordered that the Bank shall pay within six weeks to Dhall the following amounts:"1. The entire arrears of pension in regard to the pension and gratuity fund rules with interest @ 6% per annum. 2. Pension will be paid in future in accordance with the rules. Pension will be computed on the basis of full pay during the period of suspension. 3. The Provident Fund (Bank's contribution which has been withheld) with interest according to the Rules after deducting the admitted sum of Rs. 10,000/- P.F. and the interest up-to-date on payment according to the Rules will be calculated first. Thereafter the admitted amount of Rs. 10,000/- will be deducted therefrom. The balance shall be paid to the petitioner. 4. The petitioner shall also be entitled to such other retirement benefits as are admissible to him according to the service rules, have already not been given to him. 5. Petitioner will also be entitled to full pay for the period of suspension and the bank shall pay the sum after deducting such amount as has been paid to him during the period of suspension by way of subsistence allowance or otherwise. 6. The petitioner shall be entitled to his costs. Counsel's fee for Rs. 500/-."
(2.) Dhall was appointed as Cashier in the Imperial Bank of India in July, 1939 and was confirmed to this post after completion of his period of probation of one year. The Imperial Bank of India was constituted under the Imperial Bank of India Act, 1920 which was repealed by the State Bank of India Act, 1955 by which the State bank was constituted. Services of Dhall were taken over by the State bank and the existing Services Rules, Pension Fund Rules and Provident Fund Rules of the Imperial Bank of India were adopted by the State Bank in respect of these employees. This was under S. 7 of the State Bank of India Act which, in relevant part, is as under: "7. Transfer of service of existing officers and employees of the Imperial Bank to the State Bank- (1) Every officer or other employee of the Imperial bank (excepting the managing director the deputy managing director and other directors) in the employment of the Imperial Bank immediately before the appointed day shall on and from the appointed day, become an officer or other employee, as the case may be, of the State Bank, and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, gratuity and other matters as he would have held the same on the appointed day if the undertaking of the Imperial Bank had not vested in the State Bank, and shall continue to do so unless and until his employment in the State Bank is terminated or until his remuneration, terms or conditions are duly altered by the State Bank. (2) to (6) **********
(3.) In July, 1956, Dhall was promoted as Head Cashier by the State Bank of India. The State Bank of India (Sub-Accountant and Head Cashiers) Service Rules came into force on January 1, 1959. Under these Rules, the age of superannuation for Head Cashier was 55 years but w.e.f. April 1, 1967, this was increased to 58 years. Dhall was due to retire on May 28, 1970 after completing 30 years of pensionable service. However, the competent authority granted extension to him of his service by seven years up to and including 30th June, 1977 on which date Dhall was to complete 58 years of his age. While in the extended period of service, Dhall was suspended on account of certain allegations against him of fraud and defalcation of funds while posted at Agra.;