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Illegal Denial of 100% DA Neutralisation to Senior Citizens 

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S.  Ramachandran                                                                                   Kunal Icon, Building no. A8,                               

Former  General Manager Bank of Baroda.                                      Flat no. 104, Pimple Saudagar,  

Former Chairman & CEO - The Sangli Bank Ltd.                          Aundh Camp, Pune 411027

(Now merged with ICICI Bank Ltd.)                                                    Tel: 020 27201012.

Former Administrator Madhavpura Mercantile                              E-mail id- ramans1938@gmail.com                              

Co-op Bank Ltd (Ahmedabad)                                                                 

Former Director General Maratha Chamber of Commerce            

Industries & Agriculture, Pune.

                                                                        By Speed Post

             

To                                                                                                                                    2nd  March 2013

SHRI S.S.MUNDRA,

CHAIRMAN AND MANAGING DIRECTOR ,

BANK OF BARODA,

BARODA CORPORATE CENTRE,

G-BLOCK, C-26, BANDRA KURLA COMPLEX,

BANDRA EAST, MUMBAI-400051

 

DEAR SIR,

 

RE- ILLEGAL DENIAL OF 100% D.A. NEUTRALISATION TO SENIOR CITIZENS WHO RETIRED FROM THE BANKS SERVICE PRIOR TO NOVEMBER 2002 BY THE BANK  ON THE WRONG, ILLEGAL, DISCRIMINATORY AND ARBITRARY ADVICE OF INDIAN BANKS ASSOCIATION AND INVIOLATION OF ARTICLES  14 AND16OF INDIAN CONSTITUTION

 

I am pained to inform you that though I have retired from banks service on 1-4-1997 i.e well before 1ST Nov ,2002 I am not getting 100% D.A. Neutrlisation . I may bring it to your kind attention that supreme court has clearly reiterated the principles relating the pension as under.

a) In regard to pensioners forming a class computation of pension cannot be by different. formula thereby applying an unequal treatment solely on the ground that some retired earlier and some retired later .If the retiree is eligible for pension at the time of his retirement and the relevant pension is subsequently amended, he would become eligible to get enhanced pension from the date when the amendment takes effect. In such a situation the additional benefit under the amendment ,made available to the same class of pensioners cannot be denied to  him on the ground that he had retired prior to the date on which the aforesaid additional.  benefit was conferred.   

 

b) If the writ petitioners have been enjoying the benefit of the pension scheme( I have been enjoying the benefit of the pension scheme) .The relevant pension scheme was subsequently amended only for the purpose of redefining the pay for the purpose of re fixation of pension .The impugned was in the nature of a procedural amendment and as such , I am also entitled to the benefits of the new formula of computation, without any claim for arrears. I am claiming the benefit from 27-11-2009 from which date I am getting the pension.

 

 

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C) The bank would be justified in its contention in case I WAS NOT ELEGIBLE FOR THE PENSION The 8th Bipartite Agreement/Joint note has not evolved a new scheme . The existing scheme continued as such with slight modification with respect to the payment of dearness relief at the rate of 0.18% of the basic pension..The bank now wanted the pensioners to be classified into two categories without any material change introduced in the pension scheme. Even though re-definition of pay for the purpose of pension was introduced only by the 8th Bipartite Agreement/Joint note ,dated 2nd June, 2003 the benefit was extended even to those who have retired during the period 1st April 1998 to 30April.2005.The classification therefore is nothing but artificial And arbitrary and it was not on the basis of any rational principle. The bank by restricting the benefits of the new definition of pay for the purpose of pension to the employees who retired earlier, essentially created a class within a class

  d)The All India overall Working Class Consumer Price Index remain the same not only for the employees who have retired subsequent to 6th Bipartite Agreement/Joint Note but also for others like the petitioners who have retired before the cut-off date in question. The dearness relief at 0.18% of the basic pension was introduced taking into account the ALL India Over all Working Class Consumers Price Index. The prime inflation and price increase are common to all the retired employees irrespective of the date of retirement . Therefore , the benefits of such redefinition of pay for the purpose of pension should be given to all the pensioners without any distinction

 

THE DISPOSITION OF MADRAS HIGH COURT ON 14-12-2012 in THE MATTER OF W.P.9952/2007,W.P.14983/2007AND W.P.6632/2007 FILED BY SOME OF THE OFFICERS OF BANK OF BARODA,CANARA BANK AND INDIAN OVERSEAS BANK IN RESPECT OF DENIAL OF 100%D.A.NEUTRILISATION TO RETIREES PRIOR TO 1ST NOV,2002.

 

“Since the petitioners formed a uniform class, the banks concerned in these writ petitions are directed to extend the benefits of 8th Bipartite Agreement/Joint note ,as given to the employees who have retired between 1st November,2002 to 31 st October,2007,to writ petitioners ,such exercise shall be completed within a period of three months from the date of receipt of a copy of this order.”

 

THE DISPOSITION OF HON’BLE SUPRE COURT OF INDIA ON 17-1-2013 IN THE CASE OF “KALLAKURCHI TALUK RETIRED OFFFICIAL ASSOCIATION TAMIL NADU ETC WITH CIVIL APPEAL NO 8853-8855  OF 2012 IN THE SIMILAR MATTER.

 

  Even the supreme court in above judgment  observed that  “the purpose of adding the component of dearness pay to wage for calculating the pension is to offset the effect of inflation. In our considered view therefore the instant classification made by the statement Government in the impugned  Government order dated 9-8-1989 ,placing employees who had earlier retired after 1.6.1988 at a disadvantage , vis –a -vis the employees who retired prior thereto ,by allowing them a lower component of ‘DEAR NESS PAY”IS CLEARLY ARBITRARY AND DISCRIMINATORY ,AND AS SUCH ,IS LIABLE TO BE SET ASIDE ,AS VIOLATIVE OF ARTICLES 14 AND 16 OF THE CONSTITUTION OF INDIA.”

 

In the light of above two judgment s you will also agree with me that gross injustice has been done to me and other retirees by the bank and IB A and it does not leave any logical scope for IBA/or GOI or Bank to deny 100% D.A. neutralization for bankers who have retired prior to 2002.and who are now more than 72 years of age. If   IBA/bank decides to go to SC based on some flimsy arguments ,it will be merely to buy time and to harass the senior citizens retired bankers who are mostly above 72 years of age and will be wasting good money of the bank and Govt on the bad case on account of  the wrong interpretation by the I.B.A which has created the above problem which made the affected retirees to knock the door of HIGH COURTS FOR JUSTICE without any justification. It  also needs I.B.A and  GOI to be reminded of National Litigation Policy

 

In view of the above I appeal to you  to gracefully resolve the matter by granting 100% D.A neutralization to bank employees who retired prior  to 1st nov,2002

 

 COPIES OF BOTH THE ABOVE JUDGMENTS CAN BE OBTAINED FROM OUR LEGAL DEPARTMENT.

 

Thanking you,

 

Yours faithfully,

 

 

 

S.Ramachandran

FORMER GM BOB

And stake holder

 

 

c.c to SHRI KAMATH, CHAIRMAN ,I.B.A MUMBAI, FOR INFORMATION AND NECESSARY   ACTION.

 

C.C TO CHIEF SECRETARY ,FINANCIAL SERVICES.,MINISTRY OF FINANCE, PARLIAMENT STREET, NEW DELHI, FOR INFORMATION AND NECESSARY INSTRUCTIONS TO I.B.A DIRECTING THEM NOT TO GO IN FOR APPEAL AND IF ALREADY GONE FOR APPEAL TO WITHDRAW THE SAME AND TO GRANT 100%D.A NEUTRLISATION TO RETIREES PRIOR TO 1ST NOV,2002 AS DIRECTED BY THE HON’BLE MADRAS HIGH COURT..

 

 

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