Satya Pal Pawar vs United India Insurance Company Limited

Sabina, J.—Petitioner has filed this petition seeking a direction to the respondents to grant him pension with effect from 23.10.2008 instead of 23.10.2010. Further, petitioner has prayed that he be granted interest on account of delay in payment of pension.

Case of the petitioner, in brief, is that he joined the services of the respondent-insurance company on 14.12.1985. Petitioner requested the respondent-insurance company to voluntary retire him from service on or before 22.10.2008 to enable him to join Universal Sompo General Insurance Company Limited. In pursuance to the request made by the petitioner, he was voluntarily retired by the respondent-insurance company. Petitioner was, however, not released his retiral benefits. Immediately on retirement, petitioner received his gratuity on 13.2.2009. Petitioner received the amount of GSLI on 21.5.2009. Petitioner was released the benefit of leave encashment on 10.11.2009. However, petitioner was not released his pension. Ultimately, petitioner was released his pension on 4.1.2011. Petitioner was released gratuity on account of revision of pay scale on 5.5.2011. Petitioner was also released commutation of pension on account of revision of pay scale on 5.5.2011. Although, petitioner was entitled to receive his pension with effect from 23.10.2008, however, he was released his pension with effect from 23.10.2010. Hence, the present petition by the petitioner.

Learned counsel for the petitioner has submitted that petitioner had not been released his pension for two years after his voluntary retirement on the ground that he had failed to seek requisite permission from the respondent-insurance company to join new employer. The said action of the respondent-insurance company was illegal as the petitioner had sought permission from the respondent-insurance company vide Annexure P-1 when he had requested for voluntary retirement. Petitioner was never informed that he was required to fill up a particular form while seeking permission from the respondent insurance company to join the new employer immediately after his voluntary retirement. As per para 49(4) of the General Insurance (Employees) Pension Scheme, 1995 (for short ''pension scheme''), in case the respondent-insurance company failed to refuse the grant of permission sought by the petitioner within a period of 60 days, then it can be presumed that the permission had been granted by the company to the petitioner to join the new employer.

Learned counsel for the respondents, on the other hand, has opposed the petition and has submitted that petitioner had failed to fill in the necessary form for permission to accept commercial employment (Annexure R-1). Therefore, petitioner was not entitled to receive pension for the period claimed by him.

In the present case, petitioner had joined the respondent-insurance company in the year 1985 and had sought voluntary retirement vide Annexure P-1 dated 8.10.2008. A perusal of Annexure P-1 reveals that petitioner had sought voluntary retirement and had also sought permission from the respondent-insurance company to undertake employment with Universal Sompo General Insurance Company Limited. The relevant request in this regard reads as under:-

I seek your sanction for employment so that I can join with the said company within the offer time given by Universal Sompo General Insurance Company Limited with its Head Office at 310-311, Trade Centre, Opp. MTNL, Bandra Kurla Complex, Bandra (E) Mumbai 400051.

Thereafter, respondent-insurance company vide Annexure P-2 directed the petitioner to report to Personnel Department. In the said letter while mentioning the subject matter, it has been mentioned therein that the letter was being issued in connection with request made by the petitioner for voluntary retirement and for permission to take employment with Universal Sompo General Insurance Company Limited. Thereafter, respondent-insurance company communicated with the petitioner on the address of his new employer.

Para 49 of the pension scheme reads as under:-

If a pensioner who, immediately before his retirement was holding the post of Deputy Manager or above and wishes to accept any commercial employment before the expiry of two years from the date of his retirement, he shall obtain the previous sanction of the Corporation or a Company, as the case may be, to such acceptance.

Provided that an employee who was permitted by the Corporation or a Company as the cases may be to take up a particular form of commercial employment during his leave preparatory to retirement or during refused leave shall not be required to obtain subsequent permission for his continuance in such employment after retirement.

x x x x x x x

x x x x x x x

Where within a period of sixty days of the date of receipt of an application under sub paragraph (3), the Corporation or a Company as the case may be does not refuse to grant the permission applied for or does not communicate the refusal to the applicant, the Corporation or a company as the case may be shall be deemed to have granted the permission applied for.

Provided that in any case where defective or insufficient information is furnished by the applicant and it becomes necessary for the Corporation or a company as the case may be to seek further clarifications or information from him, the period of sixty days shall be counted from the date on which the defects have been removed or complete information has been furnished by the applicant.

Thus, as per the above para, it is evident that when an employee seeks retirement from the insurance company to accept any commercial employment before expiry of two years from the date of his retirement, he shall seek previous sanction from the company to such acceptance. In case within 60 days of receipt of the application, the company does not refuse to grant the permission applied for or does not communicate the refusal to the applicant, then the permission applied for shall be deemed to have been granted.

In the present case, pensionary benefits have been granted to the petitioner with effect from 23.10.2010 whereas petitioner was voluntary retired on 24.10.2008. The plea taken by the respondents for denying the pension to him from 24.10.2008 to 23.10.2010 is that petitioner had not sought permission from the respondent company before joining the new company. The said plea taken by the respondent company is without any force as petitioner at the time of seeking voluntary retirement vide Annexure P-1 had also requested for permission to undertake employment with Universal Sompo General Insurance Company Limited. As per para 49(4) of the pension scheme, in case company does not refuse to grant permission to join another company within 60 days of receipt of the application, then the permission sought is deemed to have been granted. In the present case, petitioner was not refused the permission to join Universal Sompo General Insurance Company Limited by the respondent-insurance company, although, he had specifically sought the permission vide Annexure P-1. The argument raised by the learned counsel for the respondent-insurance company that petitioner had not applied on the prescribed form for permission to undertake employment with new company which disentitled him for pension for the period in question, is without any basis. Since the petitioner had sought the permission to undertake employment with Universal Sompo General Insurance Company Limited vide Annexure P-1 dated 8.10.2008, the respondent-company could have asked the petitioner to apply for the permission on the prescribed form. Rather, no communication was made by the respondent-insurance company to the petitioner with regard to his request for permission to undertake employment with Universal Sompo General Insurance Company Limited. In these circumstances, in view of para 49(4) of the pension scheme, the permission sought by the petitioner was deemed to have been granted. Hence, the petitioner was entitled to receive pension from the date he was voluntarily retired by the respondent-company.

Accordingly, this petition is allowed. Respondent-insurance company is directed to grant the petitioner arrears of pension from the date of his retirement till 23.10.2010 within three months from today.