- (1.) These appeals are directed against the decision of the learned Single Judge dated 4th March, 2015 in W.P. 507 of 2012. The Appeal APO No.316 of 2015 has been filed by the United Bank of India (hereinafter referred to as "the Bank") and APO No. 315 of 2015 has been preferred by the United Bank of India Retirees' Welfare Association (hereinafter referred to as "the Association").
(2.) The issue involved in the present appeals is whether an invidious classification can be made between employees, who retired before 1st November, 2002 and those who retired later from the Bank, with respect to payment of dearness relief with their pension.
(3.) The employees of the Bank are governed by the United Bank of India (Employees') Pension Regulations, 1995 (hereinafter referred to as "the Pension Regulations") which are statutory in nature. These Regulations came into effect in 1995 and prescribed the rates of pension which are payable to the employees of the Bank on retirement. Under Clause 6 of the Pension Regulations dearness relief was granted to pensioners at rates which were determined from time to time in tune with the dearness relief formula in operation in the Reserve Bank of India. The dearness relief was paid to the pensioners on the basis of the calculations set out in the Pension Regulations. The Reserve Bank of India issued a circular granting 100 per cent dearness relief to postNovember, 2002 retirees, but no such relief was granted to the prior retirees. The appellant Bank thereafter, however, did not pay 100 per cent dearness relief to the pre-November, 2002 retirees. Circulars were issued by the Reserve Bank of India from time to time modifying the dearness relief payable to the pensioners of the Reserve Bank of India and ultimately it was decided to extend the benefit of 100 per cent dearness relief to those who had retired pre-November, 2002 as well. However, on 28th June, 2005 pursuant to a Bipartite Settlement/joint note dated 2nd June, 2005 the terms and conditions for payment of dearness relief on basic pension were altered. The dearness relief to be paid to those who had retired between 1st April, 1998 and 31st October, 2002 was to be calculated on the basis of 4 points rise over 1684 points in the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. This calculation was to be made on a slab system; the rate of dearness relief as a percentage of basic pension being different for each slab. However, those employees who retired after 1st May, 2005 were entitled to dearness relief for 4 points rise over 2288 points of the CPI at the rate of 0.18 per cent of the basic pension. As a result, those who retired between 1st April, 1998 and 31st October, 2002 were paid less dearness relief than those who retired after that date. The neutralisation granted to the pre November 2002 retirees was less than 100 per cent on some of the slabs, whereas those who retired post November, 2002 were entitled to 100 per cent neutralisation of the cost of living index.;