Restoration of commuted
pension – Again rejected by Allhabad High Court in the Writ Petition No. 17819
of 2024 on 15.1.2025
Background
- Petitioners: Ashok Kumar Agarwal and 48
others, retired employees of Punjab National Bank.
- Respondent: Union of India and another.
- The petitioners availed the benefit of
commutation of part of their pension at the time of superannuation, which
stipulated that the original pension would be restored only after 15
years.
- The petitioners sought to challenge this
provision, arguing for a reduction of the restoration period from 15 years
to 10 years.
Court Findings
- The court emphasized that the petitioners
had accepted the commutation policy with full awareness of its terms,
thereby creating a binding contract between the employees and the
employer.
- The court found no evidence that the
terms of the commutation policy were unconstitutional or unconscionable.
The petitioners did not contest the legality of the policy but sought a
modification of its terms.
- Once the petitioners acquiesced to the
policy, they could not later seek to alter the agreed-upon terms regarding
the restoration period of the pension.
- The court's decision was supported by
previous judgments from the Supreme Court and other High Courts,
reinforcing the principle that once a policy is accepted, it cannot be
contested later.
The order cites several
previous court judgments to support its findings:
- Common Cause, A Registered Society and
Others Vs. Union of India - (1987) 1 Supreme Court Cases, 142.
- R. Gandhi Vs. Union of India and Others -
(1999) 8 SCC 106.
- Forum Retired IPS Officers (FORIPSO) Vs.
Union of India & Another - 2019 SCC Online Del 6610.
- Shila Devi Vs. State of Punjab - CWP
No. 9426 of 2023, Punjab & Haryana High Court.
These citations reinforce the court's stance on the
binding nature of accepted policies and the inability to alter agreed-upon
terms post-acceptance.
Conclusion
- The court dismissed the writ petition,
affirming that the petitioners must adhere to the original terms of the
commutation policy, which clearly stipulates a 15-year restoration period
for the pension. The ruling underscores the importance of clarity and
acceptance in contractual agreements between employees and employers.
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